Minister for Agriculture Mary Coughlan is "confident and hopeful" that a deal can be done, possibly this month, for Ireland to derogate from the EU nitrates directive on farm slurry.
Proposals for derogation are based on the "specific characteristics of Irish agriculture", she told the Dáil.
They set out a "scientific justification for the higher operating levels".
Ms Coughlan also told Fine Gael's agriculture spokesman Denis Naughten that the proposals for an action programme on the issue are designed to allow farmers to operate under appropriate conditions and controls, up to a level of 250kg of organic nitrogen per hectare.
The nitrates directive, a complex action plan which includes rules about the conditions of storage, the amount of farm slurry that can be used and the timing of such usage, is due to come into effect on January 1st.
"While the [ EU] Commission has stated it will not consider the application for a derogation until the action programme is agreed and in place, I am hopeful for a favourable outcome," she said. "My objective is and has been to minimise the burden of compliance which must be placed on farmers in implementing the nitrates directive and safeguard the future of commercial farming."
When Mr Naughten said that "farmers will carry the can" on groundwater quality, the Minister agreed but said the commission would not negotiate on that issue until the nitrates action plan had progressed.
It was an "important issue which has major implications for intensive farming enterprise and I am anxious that we pursue the matter vigorously".
Seymour Crawford (FG, Cavan-Monaghan) asked if there would be extra grants for farmers in Donegal, Leitrim, Cavan and Monaghan following the Brussels proposal that they have a 22-week storage period.
The Minister agreed that "there is a special case to be made for these four counties".