The country’s grass-based livestock farming has long been central to its agricultural identity. Under the EU Nitrates Directive, livestock manure nitrogen is capped at 170 kg per hectare annually. For Ireland, with its long grazing season and fertile soils, a special exemption, the Nitrates Derogation, has been vital, allowing stocking rates up to 250 kg N/ha under strict conditions. Following the 2023 mid-term review, most of the country moved to a 220 kg N/ha ceiling from January 2024, while some areas temporarily retained 250 kg. From December 2025, further catchments identified by the Environmental Protection Agency will also be capped at 220 kg. Ireland, as well as the Netherlands, is actively pursuing a new Nitrates Derogation for 2026 and beyond.
New EU Legal Demands
In July, it was confirmed that the European Commission had added a tougher requirement for Ireland: the derogation process must now comply with the Habitats Directive. Drawing on a Dutch precedent, grazing and fertiliser use near protected sites are treated as “projects” subject to screening. This shift stems from a January 2025 ruling of the District Court of The Hague, which found the Netherlands in breach of its obligations to protect Natura 2000 areas from excess nitrogen deposition.
Ireland’s Department of Agriculture proposes catchment, or sub-catchment-level assessment, rather than farm-by-farm review, meaning future derogation approvals must undergo Appropriate Assessment to ensure no harm to Natura 2000 sites.
This represents a major administrative shift. With 46 catchments and nearly 600 sub-catchments nationwide, the new process could transform how derogations are managed. Minister Martin Heydon told sector leaders in mid-2025 that the new rules cannot be removed, and Ireland must instead work with Brussels to design a workable system.
Farmers have voiced strong opposition. The Irish Farmers’ Association called the proposal “logistically mind-boggling,” warning it could paralyse the system, while the Irish Creamery Milk Suppliers Association (ICMSA) said it risks becoming the “straw that breaks the back” of many family dairy farms. Environmental groups take the opposite view. An Taisce welcomed the changes, arguing that they bring long-overdue rigour to a system previously too lenient.
Domestic Regulatory Tightening
Even before Brussels’ latest move, Ireland had tightened its rules. From January 2024, most derogation areas were capped at 220 kg N/ha, with “red-zone” catchments to follow in December 2025. Other measures included cutting chemical nitrogen allowances on highly stocked farms, lowering crude protein levels in feed during the grazing season, banning unprotected urea, and requiring clover in reseeds.
Around 7,100 farmers applied for a derogation in 2025, slightly fewer than the year before. For many in the dairy heartlands, it makes the difference between maintaining production and cutting back sharply. Industry groups warn that losing it could mean a 12 percent decline in dairy farm families, a €555 million reduction in annual farm income, and a 15 percent drop in dairy exports between 2026 and 2035. Teagasc estimates that the loss of the derogation could result in a reduction in milk production of up to 1.2bn litres.
To bolster its negotiating position, the Irish government has developed a “whole-of-government” strategy. In 2024, it launched a plan structured around regulatory reforms, financial supports such as 70 percent grant aid for slurry storage to facilitate additional organic fertilizer movements and a €60 million innovation fund, stronger partnerships with co-ops and advisory bodies, planning law reforms and targeted research. A cabinet sub-committee on water quality has been established to drive this effort, and the Department of Agriculture has already made multiple presentations to the EU Nitrates Committee.
What’s Next
The months ahead will be decisive. Ireland is due to make one of its final presentations to the EU Nitrates Committee in September 2025, with a Commission decision expected before the end of the year on whether the derogation can be retained from January 2026. If secured, the new derogation will be implemented through the Sixth Nitrates Action Programme, embedding stricter water-quality targets and compliance mechanisms. Farm organisations such as the Irish Farmers’ Association are urging the Taoiseach’s office to play a direct role in negotiations, calling for socio-economic impact assessments before any further nitrogen reductions are imposed.
For Ireland, where pasture-based livestock farming and export-driven dairy define much of the rural economy, the stakes could hardly be higher. The outcome of the 2025 negotiations will not only determine stocking limits for the years ahead but also shape the trajectory of Ireland’s agri-food industry. Whether Ireland secures a continuation of its derogation or adapts to stricter limits will be a defining moment for the country’s farmers, policymakers, and international partners alike.