Farm plastic levy to rise amid IFFPG losses
The Irish Farm Film Producers Group Ltd (IFFPG) has announced an increase in its levy on farm plastic producers as the company battles escalating recycling costs.
IFFPG, which collects farm plastics, will increase its levy on the production of farm plastics to €286/t.
It also receives funding through a weight-based collection charge on farmers, which last year stood at €35 per half tonne.
The levy increase comes after the group announced losses of approximately €600,000 in 2022. It attributed the losses to escalating recycling costs due to global events, such as the war in Ukraine. The company is a not-for-profit body, which is owned by its members and the Irish Farmers’ Association.
Since 1998, it has operated a recycling scheme within the terms of an approval granted by the Department of Environment under national farm plastics regulations.
Under the terms of the regulations, the group is required to maintain a €3m contingency fund, which would cover a “doomsday scenario”, meaning if the scheme were to collapse, there would be sufficient money to provide a service for some time to farmers.
Funds
In response to requests from the IFFPG, the Department, in recent years, agreed to the use of contingency funds towards scheme costs.
IFFPG CEO Liam Maloney told the Oireachtas Agriculture Committee in April of last year that at the end of 2022, there was just €1.5 million in the fund and said the depleted reserves should come back to the required €3m level “in the next two to three years”.
Responding to questions from the Farming Independent this week, the Department of Environment said, however, there is no agreement in place now to use these funds beyond the end of 2024.
It also said the IFFPG scheme is currently undergoing a mid-term review, which is within the terms of its current approval to operate and it would include a review of its business operations.
“Any recommendations emerging from the review are intended to ensure a viable and successful service can continue to be provided to the agricultural sector,” it said.
The Department also noted recycling rates for the scheme have far exceeded the 70pc recycling target set. A recycling rate of 88pc was achieved in 2022.