Dáil debates

Wednesday, 24 April 2024

Weather-Related Supports for Farmers: Statements (Resumed)

 

4:20 pm

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

I thank all of the Members for their extensive contributions and for agreeing, on a cross-party basis, to allocate three hours for a debate on a very important topic to ensure that all the issues involved got a good airing. Many different issues were raised over the course of the three hours. One that was raised by a number of speakers is that of transport subsidy scheme we have introduced in order to help support the transport of fodder to areas where it might be scarce from areas where there would be availability in cases where it is over 75 km. Indeed, the issue as to why 75 km was selected was raised by a number of Deputies. It is important to recognise the position we are in and the fact that, thankfully, there has been sufficient fodder available in the country. That was a really important starting point that we found ourselves operating from, particularly in view of the exceptionally and unprecedentedly long winter that lasted from September up to now. Farmers did a great deal of hard work last year in terms of making sure that fodder stocks were strong. They were supported in this by the fodder scheme that the Government put in place to pay to €1,000 each to farmers to make sure that the latter was the case and to mitigate the expensive fertiliser prices resulting from the illegal invasion of Ukraine. That scheme was important. Going forward, it is the one thing to make sure that we all do as well and that every farm prepares in order to ensure that there is enough of a buffer in terms of stock because, as many of the Deputies said, what has happened is something that has become more frequent in recent years. We need to make sure we prepare for it in the future.

Given the situation and the fact that there are some parts of the country where fodder was in short supply, we moved two or three weeks ago to put in place the fodder transport subsidy scheme. The objective here is to ensure that we are covering the biggest proportion of the cost of transporting fodder into areas where it is not available locally. The idea is that no farmer will have to go any further our covering the cost of bringing it in means that it will at least be available in the co-op yards in each locality, thereby mitigating the cost of getting on site. The assessment was that 75 km was a reasonable distance within which to cover the cost, particularly if someone had to go further than that. As has been the case in the vast majority of instances, farmers' first port of call has been their local network - their farming neighbours who have stepped in to support them and to sell fodder to them in the cases where there are shortages. That has continued to be the preference. We did not want to put in place a scheme that would distort the position and mean that farmers would not continue to try to source fodder locally in instances where it is available. The objective has been to make sure that where it is not available, we get it and cover the cost of getting into an area without this adding to the cost burden that is on farmers as a result of the current lack of availability.

Many Deputies referred to the structure of the new tillage scheme. Given the pressure we are under, in particular with the tillage sector, the Government felt it important to ensure that we would give support to the sector to make sure that farmers have enhanced confidence to go ahead and plant whenever there is a window to allow them to do so. Thankfully, we have seen a planting window open up in recent days. The commitment in this regard is to ensure that we are paying the grant in respect of all field-grown crops - tillage and field-grown vegetables, including potatoes - that are planted for harvest 2024 in a straightforward manner at €100 per hectare. This will by no means mitigate all of the risk involved in a late planting in the context of the potential impact on yield, but it was a strong commitment on the part of the Government to support the sector to the tune of an expected payment requirement of approximately €30 million. That is something on which I will have to work.

As Minister, I have given a commitment to the sector. Obviously, as has been made clear by the Taoiseach, the Minister for Finance and the Minister for public expenditure, there will be no mini-budgets over the course of this year. I will have to work hard within my Department to identify the funding source for that or, indeed, as the year goes on, to make sure that we can deliver. I have given a clear commitment that we will do so. As a Government, it has been our form to make sure that when sectors have been under pressure in the past, we delivered. Whether it was the pig sector, the horticulture sector on a couple of occasions in two different years, or the tillage sector last autumn when we delivered €1,000 per hectare for unharvested crops or a €50 per hectare standard payment, the Government has worked to support different sectors when they are under pressure. Last year and this year, we have delivered €1,000 per family farm to support the making of fodder. Thankfully, this has helped to ensure that we had enough fodder to allow us to deal with the impact of the unprecedented weather experienced in recent months. Going forward into both he harvest and the planting season for 2024, we are giving a commitment to tillage farmers that we will make the payment and secure the funding over the course of this year to make sure we can deliver that payment. Our goal is to give them additional heart and confidence in what has been an unprecedentedly difficult year. In the time ahead, we also want to make sure that our tillage sector will grow into the future. We want the sector to reach 400,000 ha by the end of this decade. There was some slippage, both last year and into this year, in terms of the amount of land under tillage. After having made progress through the tillage incentive scheme that we ran for two years, the different things that hare happening are putting pressure on the area under tillage. We want to now see that area begin to grow again. In the past few days, I received the report of the tillage food vision group I established. The group brings farm representatives together with all stakeholders to advise me and the Government on how, from a policy perspective, we can work to support the sector to grow. In the immediate term, it is about making sure that people put seeds in the soil and deliver a harvest this year despite what have been very difficult circumstances for farmers.

Issues relating to payments and the importance of prompt payments were raised by all contributors. Certainly, that is something the Government absolutely agrees on. We are at the top of the league among European Union member states in the context of delivering payments early or on time. That is something that we want to continue to excel at. Last year was the first year of a new CAP. There were particular challenges, so we set out a payment schedule at the start of the year that we worked really hard to deliver on. The payment schedule meant that some payment dates set at the start of the year were between one and four weeks later than they would have been in previous years. The objective being to make sure that everybody within the Department could work to make sure that we were able to pay people on the dates that we set, and we did. A high ninety per cent of payments were paid across all of those scheme on the dates that we said that they would, and that was really important. This year, we will revert to all of the traditional dates. We are committed to making sure that we pay very high percentages on those dates this year.

The one scheme which has been a challenge is ACRES. In response to that, I moved to make interim payments to ensure that every farmer who took part in ACRES has received if not their upfront payment, then either a €4,000 or a €5,000 interim payment. The only exception is any farm in respect of which probate is ongoing. This is because someone has to be able to identify who should receive the payment in order for it to be made. Deputy Cathal Crowe referred to the importance of payments and ACRES operating smoothly this coming year. We are all working hard to ensure that this will be the case.

Across the sector over the course of this year we will closely monitor how it is doing and be in a position to support it as necessary, especially rolling out and continuing with the very strong payments we have in place. There is the €200 per suckler cow commitment this Government has delivered on. Also, this year we will for the first time see a doubling of the previous level of payment for a sheep. As recently as 20 months ago it was €10 per ewe and this year €20 per ewe will be available to all in the sheep sector as an important support to that sector. We will continue to roll out the new TAMS where we have 44 additional items that are available for either 40% or 60% grant aid with the new tranche 4 opening in the past few days. We are ensuring those who need to get on with their work can get priority status so they get the approval they need to move on with that as well.

I am always available to attend the House and am working closely with the Ministers of State, Deputy Heydon and Senator Hackett. This is a massively important sector of our national economy as well as the backbone of our rural economy. I recognise the respect Members give to the sector, but also the particular pressures farm families have been under in recent weeks, by allocating three hours to this issue in the Dáil. We are available at any stage to come in and discuss the work we are doing on behalf of the sector and on behalf of farmers nationally, should the Dáil request it.

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