The Irish Farmers' Association says landowners should be paid €1,000 a year from the State to allow pleasure-walkers to use their land.
The flat-rate would be topped up by a payment of €5 per metre of walk under IFA proposals yesterday.
If implemented, the scheme would cost €6 million in the first year, rising to €15 million annually as more walks qualify for funding.
IFA president John Dillon said the proposed "countryside walkways management scheme" aimed to enhance the tourism potential of rural regions and boost their economic development.
The scheme would create either linear walks or shorter, looped walks in the countryside by agreement with landowners.
The scheme could involve 5,000 farmers and up to 2,000km (1,243 miles) of walks could be created. The initial €6 million would be an annual investment. Mr Dillon was "confident" the Government would support the scheme.
Walks would increase over time as part of local development strategy with an overall expenditure of €15 million per annum.
"If you look at the amount of public money invested in tourism, this is small money," said Mr Dillon.
Martin Gavin of the IFA said the initiative would be a positive move for farmers, hill-walkers and Irish tourism. "This will definitely solve the problem of trespassing," he said.
Michael Comiskey, the IFA hill chairman, said a survey showed farmers would welcome the initiative. "It will give many a chance to improve their income. If we get the Government onside, it will be a great future for everyone."
The Mountaineering Council of Ireland (MCI) attended yesterday's launch in support of the IFA's scheme.
"It's wonderful to see the walking issue shifting from the problem to the solution," said the MCI's Helen Lawless.
Joss Lynam, also from the council, agreed, saying: "The only way we are going to get anywhere is by talking to each other. This could be the starting point we need."
IFA general secretary Michael Berkery said the initiative would help find a way for hill-walkers and the farming community to coexist. "It will enhance the value of the countryside without diminishing it," added Mr Berkery.
Mr Dillon cited the decline in walking tourism as a reason for the initiative. "In 1999, some 320,000 tourists were involved in hill-walking in Ireland. In 2003, this had dropped to 168,000. The IFA wants a return to the 1999 figures," he said.
The IFA also proposes that Fáilte Ireland approve landowners to agreed standards and that it would organise the walks through local development associations.
The IFA has approached various departments for funding. Éamon Ó Cuív, Minister for Community, Rural and Gaeltacht Affairs, said yesterday: "I received the IFA proposal today. It will be examined in due course."
A spokesperson for the Department of Tourism said it was aware of the proposal but that it would be considered first by the Department of Community, Rural and Gaeltacht affairs.