Oireachtas Joint and Select Committees

Tuesday, 6 December 2016

Select Committee on Agriculture, Food and the Marine

Estimates for Public Services 2016
Vote 30 - Agriculture, Food and the Marine (Supplementary)

3:00 pm

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour) | Oireachtas source

It is clear that the position regarding grain farmers is one of great concern. Not alone have farmers lost all their crops but the Minister knows that since approximately 2012, more than 100,000 acres has been lost from the grain sector. That trend is likely to continue in view of what happened in the past year, with negative margins prevailing. Everybody has lost €150 to €200 per hectare or even more if we add in the loss of straw, as described by Deputy Cahill. As everyone lost straw, there will be much demand for the limited straw that is available, meaning the prices will increase. Some farmers lost up to 50% of their yield and some individuals even lost more. The farmers in the western seaboard counties of Mayo, Galway, Kerry, Donegal, Longford, Roscommon and Cork were affected. In my county, approximately 14 or 15 farmers were fairly significantly impeded.

I know that these farmers are seeking a particular direct aid scheme and the Minister will probably look to work through the scheme he has devised for the SBCI. The loans with rates of less than 3% applying would be a huge help when it comes to merchant credit and short-term financial facilities. It is of some use but it is far down the line. The applications for the cash flow support loan scheme must be evaluated and I hope the process will not be slow. It should not be as there are only four or five applications. I worry about the bureaucracy as people might not be happy with the i's being dotted and the t's crossed; they go back to rerun the show in a circular fashion. This better be done by January. The Minister gave some very eloquent presentations, which I acknowledge. I know the mushroom industry will be covered by the SBCI scheme but it is a case of live horse, get grass. The mushroom industry has been under pressure for the past three months. Most mushroom farmers want to get over the hump now and know if they do, they will survive to be competitive in future.

Brexit will not last forever, notwithstanding that my original view was that it would take five years. That might now be a conservative view, which highlights the uncertainty. The Minister's proposal regarding the SBCI is a good idea. Some of this money will create further capacity. Am I correct that he will use it in that regard? If it only took €3 million to help grain farmers, they would be in big trouble otherwise. I appeal to the Minister to do something with greater immediacy than what is planned with the SBCI income cash support.

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