Mr. Seán Finan:

The measures introduced in last year’s budget to incentivise long-term leasing have been very important in encouraging farmers to move away from conacre agreements to more long-term arrangements, and the newly announced farm transfer partnership proposal is also very welcome. The land mobility service is contributing to the development of the dairy industry by providing new blood to the industry and encouraging young and older farmers to work together to grow their farm businesses. Since the abolition of the milk quota, dairy farmers are focusing more on milk production output. The rearing of replacement dairy stock consumes land that could otherwise be used for milk production. The result is a spin-off enterprise that offers huge potential for farmers in more marginal areas to supplement their businesses or run contract rearing operations. This is a positive initiative which has huge potential and we need to encourage more of these types of arrangement. Contract rearing is an enterprise that dry stock farmers could look at to run alongside their existing enterprises as a way of increasing stocking rates and output. The land mobility service has established a number of successful contract rearing arrangements across the country.

We welcome the new partnership register of Department of Agriculture, Food and the Marine, and we are calling for a register of share farming agreements to be put in place. There are issues to be addressed in terms of share farming, but young farmers see huge potential in this area.

The land mobility service means that land is more accessible for young people, but access to finance to pay for this land and develop our businesses is a particular challenge. In most cases, young farmers do not have the security or past track record to draw down loans when starting out.

The EU Commissioner for Agriculture and Rural Development, Phil Hogan, told our recent young farmers' conference about developments and funds available from the European Investment Bank. There does not seem to be a clear view here at a Department of Agriculture, Food and the Marine level and Government level as to how this money, at lower interest rates through the rural development programme, can be funnelled into young farmers' hands in Ireland. I would ask that the joint committee look into this issue.

In spite of the opportunities that exist, it would be remiss of me not to highlight briefly some of the challenges that remain for young farmers within the dairy industry. As the only young farmers' representative body in the country, Macra na Feirme has a huge role to play in working with young farmers and members to identify the issues, speak about solutions, find ways to address them and then lobby policy makers for change to improve our lot.

Incomes and commodity prices remain issues this year particularly in the dairy, tillage and pig sectors. Income volatility remains a huge challenge for the industry. We welcome the establishment of the dairy forum by the Minister, Deputy Coveney. At the first meeting of the dairy forum, I called for a top-up for young dairy farmers here in Ireland when the package from the EU Commission is distributed. I am delighted that the Minister has made a commitment to give young dairy farmers this top-up.

Macra na Feirme has also called for an income volatility bond to be put in place to help dairy farmers deal with the volatility and fluctuations in commodity prices, which are inevitable when selling on the world market. Our vision is that farmers in a year of strong product prices can invest money in this bond and draw it down in a year of harder economic times. This bond would go a long way towards addressing the issue of income volatility which is crippling young farmers. When we proposed this to the Department of Agriculture, Food and the Marine we were told State aid rules preclude this from being put in place. We are asking for the committee’s assistance to move this proposal forward and we would like to see the Department of Agriculture, Food and the Marine work with the EU Commission on this issue and help to develop workable solutions to overcome the State aid rules obstacles.

We are active young farmers who want to progress and develop our businesses. We will do something to get something. The CAP needs to be about rewarding active farmers, but the historical model does not promote active farming. Nothing annoys young farmers more than to see their neighbours across the ditch farming extensively with low stocking rates and next to no farming activity, while receiving a significant payment based on their activity nearly 15 years ago. Young farmers on the other side of the ditch, while very productive and driving on, have borrowings but are often receiving a very small or no basic payment.

Young farmers are happy to deliver on actions on climate change, food security and to ensure our economic viability. There are young farmers who have fallen on their feet with a top-up and national reserve, but there are farmers who have fallen through the cracks and are not eligible for any of the measures. There are farmers that are 26 years of age and eligible for no supports, and farmers who are 37 and receive all young farmer supports.

Young farmers want commitments that young farmers in the future will not fall through the cracks and this is the challenge we face in shaping the next CAP. Supporting farmers to maximise the potential of their grazing infrastructure should also be a key component of the next CAP rural development programme.

What I have outlined are the issues and the realities on the ground. I would like to thank the committee for inviting us to make these presentations today. Macra na Feirme looks forward to hearing the views of committee members as well as working with them on the issues affecting young dairy farmers and, indeed, all young farmers.