Claire Kerrane (Roscommon-Galway, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I wish to ask the Minister about the recent changes that the Irish Cattle Breeding Federation, ICBF, has made to the beef index and, in particular, the impact this will have on the suckler carbon efficiency programme, SCEP, for suckler farmers. He will be aware that significant concerns have been raised in regard to the manner in which this has been done and what it will mean for farmers, breeders and pedigree breeders. The ICBF was before the Joint Committee on Agriculture, Food and the Marine yesterday. While it acknowledged the concerns that exist and that there will be a financial impact on some farmers, it is not willing to move or do anything to change it. Will the Minister intervene in regard to the outcome and consequences of these changes?

Charlie McConalogue (Donegal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I am aware of the concerns among some farmers about the recent changes to the ICBF beef index, particularly farmers participating in the SCEP. I have been closely monitoring the impact of the changes on SCEP farmers. I remain confident that the amended indices will improve beef farm profitability and also beef farm sustainability, which is the overarching intention of the SCEP. The background to this among farmers is that the ICBF, which is the body approved in Ireland in accordance with relevant EU legislation to conduct testing as well as genetic evaluation and publication of breeding values for dairy and beef cattle, has recently updated beef breeding indices.

This was the first major update since 2015, based mainly on changing economic drivers such as feed costs and beef prices. A modest adjustment also took place based on earlier slaughter of animals, tuberculosis resistance, carcass specifications and lower methane output. 

Prior to the updates, continental breeds such as Charolais, Limousin and Belgian Blue were the most desirable terminal cattle breeds, and they continue to be the most desirable breeds after the changes. With regard to the replacement index, the top three most desirable replacement breeds were Aberdeen Angus, Limousin and Simmental and they remain as the top three after the changes.

The ICBF recently committed to convening an industry stakeholder forum to address issues and concerns raised by suckler farmers and pedigree breeders. I welcome that it is taking on this engagement.

As regards the SCEP specifically, this scheme aims to provide support to suckler farmers to improve the profitability and environmental sustainability of the national beef herd. I understand from ICBF that 84% of animals that were 4-star or 5-star prior to the changes will retain their 4-star or 5-star status after the changes.  Animals in SCEP herds whose index falls will not be impacted by the changes unless the SCEP participant sells an animal that has gone down in rating.  It is only when this animal moves out of this herd, that its 3-star rating will become applicable and it will no longer meet the 4-star and 5-star eligibility criteria.

Claire Kerrane (Roscommon-Galway, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

Has the Minister engaged with the ICBF, particularly in the past week when much of this has come to the fore? Some farmers bought 5-star bulls because they followed what the ICBF told them but those bulls are now 2-star or 3-star. This will have a significant impact on those farmers. I spoke to a farmer who lost more than €100,000 overnight. He had to tell his daughter she will not be able to go to college as the family will not be able to afford to send her there. That is the real-life impact of this decision. While 84% might sound good, 16% are at sea in the context of these changes. The cross-party committee was unanimous and united yesterday in its ask of the ICBF to pause the changes it has made to the index and to engage, as it ought to have done in the first place. There is little point setting up a stakeholder forum after the decision has been made. This is having real financial impacts on farmers. What specific engagement has the ICBF had with the Minister in the past two weeks?

Charlie McConalogue (Donegal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I welcome the engagement with the agriculture committee on this issue and the discussion in respect of it. I am sure the ICBF will welcome and consider any proposals or suggestions arising from that. It is set up with a board, which includes very strong farmer representation, and is considering the matter.

The aspect I am considering is the impact on the SCEP scheme in the context of the data and scientific evidence showing an alteration to star ratings. As I stated, 84% of animals that were deemed to be 4-star or 5-star prior to the changes have retained that status. If the data and evidence in respect of profitability and breeding merits of animals change, however, and the science and data show that, there is no changing that. What I am doing is making sure those who are engaging with SCEP in good faith and doing all the right things do not lose out financially in the context of that programme. If a farmer owns one of the 16% of cows that were 4-star or 5-star but dropped, the farmer will still get paid the SCEP money as long as the cow remains in the herd.

Claire Kerrane (Roscommon-Galway, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

That, in itself, is not really following the science. If a farmer has a 5-star cow and is in SCEP, the cow will remain 5-star, but if the farmer sells the cow, it is not 5-star. That does not make sense. There has been a lack of engagement in respect of these changes. For the third time, what engagement has the Minister had with the ICBF? Has it contacted him? Its representatives were clear at the committee yesterday in saying there has been an impact on farmers. The Minister keeps referring to the 84%. I am talking about the 16% of farmers who have done everything, including signing up to SCEP, in good faith. The rug has been pulled from under them and they need to be heard. It is reasonable to ask for this to be paused for a short time to allow engagement to happen and a solution to be found. On anything relating to data, science and the environment, we have to bring farmers with us. That has not been done in the context of these changes. It will not work if that does not happen. I again ask the Minister to consider the proposal for the ICBF to pause the changes and, at least, bring that to its board. It is not willing to do so, but I believe it should.

Charlie McConalogue (Donegal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

There is ongoing engagement between my team and the ICBF in respect of the changes it is making and, in particular, any impacts on SCEP. It is up to the ICBF and the board, on which all the farm organisations are represented, to do their businesses, deal with the data coming in and make the changes and adjustments they are making.

As regards the SCEP programme, I have paused any impact relating to the payments for 4-star or 5-star cows that drop. If a cow was 5-star and drops to 3-star, the farmer will not be penalised so long as the cow is in SCEP. Recognising that it started off as 5-star, the cow will continue to be paid on for the duration of SCEP in order that it does not impact on the percentage of 4-star and 5-star cows in the herd. I have already moved to do that because I want to have that stability within SCEP. Of course, it is important that people pay attention to what the data shows. When the facts change, there must be an adjustment to reflect that. I am continuing to issue payments, but people should factor it into their breeding policy going forward.