Oireachtas Joint and Select Committees

Thursday, 25 April 2013

Joint Oireachtas Committee on Agriculture, Food and the Marine

Fodder Crisis: Discussion with Minister for Agriculture, Food and the Marine

1:10 pm

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail) | Oireachtas source

I am talking about the comparison with the round bale of silage. There seems to be a dispute in this regard among farmers in Ireland who know a bit about the matter but I will leave that issue to them.

There are many farmers who do not deal with dairy co-operatives. They have no track record with them, nor do they have any credit facilities with them. The dairy co-operative does not have a milk cheque to set against the price. In some parts of the country, there are no dairy co-operatives. What are the arrangements for the affected people?

Will the banks continue to lend to those who have already exceeded borrowing limits, who are in trouble with the bank manager and who are in trouble their overdraft? Have the banks given the Minister clear assurances in that regard?

I accept the Minister's point that he will feed the animals directly. I do not care how the animals get fed if they are fed. The farmer will be happy to see the animals fed. To whom must one apply? What information is required by the officials when one seeks assistance? How much assistance is available to farmers? How does the system work? Must the farmer in the circumstances I describe ring the helpline or go to the district veterinary office? This needs to be absolutely clear and the message must be sent out to farmers.

The Minister stated he will operate on an open-cheque basis. I accept that as it is fair enough. In the heel of the hunt, the funding I suggested a month ago will not be far off the funding that the Department will have to find. So be it.

The Minister said funding will be made available, if necessary. The Minister quite rightly pointed out that commodity prices, including for milk and beef, are quite good at present. Has any pressure been put on the factories and dairy processors to raise the prices of milk and meat so the producers will get a better income? It is fine to keep lending money to people and taking it back from next year's cheque, but this means that the producer will have to pay this year's costs next year in addition to those of next year. He will discover the solution was only temporary.

The Minister gave details on payments. With regard to agricultural scheme payments, what percentages are paid in respect of 2012? I refer to the single payment scheme, the disadvantaged areas scheme, REPS 4 and AEOS 1 and 2. With regard to the first two, I believe the percentage is fairly high. With regard to the suckler cow scheme and all the other schemes pertaining to 2012, how far down the line are we in getting the cheques to farmers? The Department could definitely send out cheques to people to whom they are due.

Many have asked about prepayment under the disadvantaged areas and single payment schemes, for example. I understand this cannot be done because of EU rules. Will the Minister confirm whether there is any possibility that permission could be obtained, either under the national or EU-funded schemes, to make significantly earlier payments this year? I do not mean a week earlier in the autumn.

In the longer term, there will also be consequences for people who are destocking animals where they reduce the herd because they cannot feed them. In addition, they anticipate that because of the late spring this year - and the issues the Minister highlighted, including fertiliser - they will not be able to feed the same number of stock next year either, so they will be destocking. Has the Minister had discussions with the Minister for Finance on that matter because there are major tax implications for some farmers in destocking?

I understand that many other people want to speak so I will finish there.

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