Agriculture Minister Opens Innovation Partnerships Applications Amid Budget Constraints

DAERA Minister Andrew Muir has visited a County Londonderry dairy farm to highlight how farmer-led innovation can reduce emissions while maintaining productivity, as the department opens applications for a new round of Innovation Partnerships funding.

During a visit to Hugh Harbison’s farm in Aghadowey on 8 May 2026, the Minister saw firsthand the legacy of the Accelerating Ruminant Carbon to Net Zero (ARC Zero) project, a European Innovation Partnership initiative that has demonstrated net zero carbon farming is achievable within Northern Ireland agriculture. The visit coincided with the opening of applications for the new Innovation Partnerships scheme, which offers groups of farmers up to £150,000 over three years to develop practical solutions to industry challenges.

ARC Zero: Proving Net Zero is Possible

The ARC Zero project, which began in April 2021, brought together seven farms across Northern Ireland to measure and manage carbon flows at the individual farm level. Unlike standard carbon calculators that focus on gross emissions from single enterprises, the project used whole-farm lifecycle analysis combined with detailed soil carbon stock assessments to create accurate net carbon balance sheets.

Data from the project revealed that the seven participating farmers manage carbon stocks totalling more than half a million tonnes annually, stored in soils, pasture, crops, trees and livestock. Two farms had already achieved net zero in initial audits conducted in 2023, with the remaining five demonstrating significant emissions reductions over the two-year monitoring period.

The project is particularly significant for Northern Ireland, where agriculture accounts for approximately 27% of total greenhouse gas emissions—the highest proportion of any UK region. Under the Climate Change Act (Northern Ireland) 2022, farmers must cut emissions by 48% before 2030 and reach net zero by 2050.

New Funding Round Opens

Building on the ARC Zero model, Minister Muir announced that applications are now open for Innovation Partnerships under the Farming for Sustainability – Innovation Scheme. The programme invites groups of at least two farmers to collaborate with industry experts and researchers on projects addressing environmental sustainability, productivity, sector resilience or supply chain efficiency.

Successful applicants can receive:

  • Up to £6,500 in Stage 1 funding to develop project plans
  • Up to £150,000 over three years for the seven highest-scoring Stage 2 applications
  • Capital funding of up to £40,000 at a 50% grant rate for essential equipment

At least one applicant must hold a DAERA Category 1 Business Identification Number. Stage 1 applications close at 4:00pm on Friday 12 June 2026.

Minister’s Vision for Sustainable Farming

Speaking at the Harbison family farm, Minister Muir emphasised the dual benefits of environmental action:

“The benefits of climate action are clear in delivering economic opportunities, cleaner air, healthier communities, and stronger, more resilient ecosystems. I would like to commend all those involved in the ARC Zero project who have demonstrated leadership in pioneering on-farm solutions across a range of farming systems. Projects like ARC Zero show that climate action and improving environmental sustainability on-farm goes hand in hand with productive and profitable farming. By using science, data and evidence, farmers can make informed decisions to produce healthy, nutritious food more efficiently while delivering improved environmental outcomes.”

The Minister encouraged wider participation in the new scheme:

“I am pleased this week to have opened a new round of Innovation Partnerships for applications, delivered as part of the Sustainable Agriculture Programme. The Innovation Partnerships will support farmer‑led innovation and collaboration across the Northern Ireland agri‑food sector building on the successful delivery of the pilot EIP scheme and the achievements of projects like ARC Zero.

“I would encourage farmer groups, industry partners and researchers with shared practical challenges to consider applying for Innovation Partnerships, which offer a structured way to test new approaches, share learning and strengthen farm business resilience and environmental sustainability.”

Budget Constraints and Scaling Challenges

While the Minister’s visit highlighted successful pilot projects, significant questions remain about scaling these innovations across Northern Ireland’s 25,000+ farm businesses. The ARC Zero project involved just seven farms—demonstrating proof of concept but requiring substantial expansion to meet statutory climate targets.

Funding pressures pose a further obstacle. According to scrutiny by the Committee for Agriculture, Environment and Rural Affairs of the 2025-26 draft budget, DAERA bid £5.8 million for Green Growth and Climate Change Delivery but received only £1.0 million in allocation—a shortfall that raises concerns about the department’s capacity to support widespread adoption of the practices trialled at farms like the Harbisons’.

The transition from EU-funded programmes (such as the Rural Development Programme that supported ARC Zero) to UK replacement schemes also creates uncertainty. The pilot EIP scheme that funded ARC Zero awarded Stage 2 funding of up to £120,000 to seven operational groups in 2020, but future funding streams remain subject to annual budget negotiations.

Questions for Stakeholders

  • How will DAERA ensure the lessons from seven-farm pilot projects like ARC Zero can be practically scaled to thousands of commercial farms given current budget constraints?
  • With significant shortfalls in climate change delivery funding, what guarantees exist that successful Innovation Partnership projects will receive ongoing support beyond the initial three-year funding window?
  • Given the complexity of whole-farm carbon accounting demonstrated by ARC Zero, should Northern Ireland adopt mandatory standardised measurement tools to ensure consistency across all farms reporting emissions?
  • How will the department address the “valley of death” between pilot project completion and mainstream adoption, where promising innovations risk being lost due to lack of transitional funding?

What Happens Next

Farmers interested in the Innovation Partnerships scheme can find application details on the CAFRE website. The scheme represents a key component of DAERA’s Sustainable Agriculture Programme, which the Minister states will be backed by “over £330 million annually”—though scrutiny of how this funding is distributed between direct payments, environmental schemes and innovation projects continues.

With the first carbon budget (2023-2027) requiring a 33% average annual reduction in emissions and the 2030 target of 48% cuts looming, the pressure to move from pilot projects to province-wide practice change intensifies. The success of schemes like ARC Zero proves the technical feasibility of net zero farming; the challenge now lies in making it financially and practically accessible to every Northern Ireland farm business.

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