Oireachtas Joint and Select Committees

Wednesday, 11 April 2018

Joint Oireachtas Committee on Agriculture, Food and the Marine

Ongoing Fodder Crisis: Minister for Agriculture, Food and the Marine

2:30 pm

Photo of Jackie CahillJackie Cahill (Tipperary, Fianna Fail) | Oireachtas source

I welcome the Minister and his officials. He stated that this problem was being assessed all winter long. It was clear last autumn that if we did not get an early spring, we would have extreme fodder shortages. When Topical Issues were raised in the Dáil and points were raised, the Minister dismissed them totally. He spoke about how the fodder situation was being assessed by Teagasc. No attempt was made to stretch the available fodder in the country. I used to say that a concentrates subsidy was never there. That does not mean that it should not be used. If we were serious about trying to stretch the available fodder, we would have introduced a fodder subsidy when we looked for it last January. Unfortunately, this problem is not going to go away overnight. Soil temperatures are probably at an historic low for the second week of April. Even at this late stage of the year, silage ground will have to be grazed, which will raise continuing issues regarding fodder availability for next winter. It is essential that we accept that fodder must be imported due to the lack of action earlier in the winter. In certain parts of the country, there is an eight-day delay to get rations from the time someone places their order to the time the ration is delivered to them so there is huge pressure on the mills and huge costs are being built up by all farmers.

We have to try to deal with the current situation. The lack of action up to the first week of April has greatly exacerbated the problem. Farmers and their families are suffering from mental and physical exhaustion. As has been stated, Bord Bia and cross-compliance inspections must be suspended. The seven-month rule for areas of natural constraint must be examined, as must other restrictions, particularly that relating to low-quality land not being permitted to carry stock.

All outstanding moneys must be paid immediately . There will be a serious cashflow crisis. Listening to the Minister, it seems that there will once again be a hands-off approach and that the banks and co-ops will resolve this issue with merchant credit. Under the 2016 scheme, many of the farmers who needed the money most did not get it from the banks. The money was given to favoured customers and those on the bottom rung of the ladder who needed the money most did not get it. That must not be allowed to happen on this occasion. The Department must become involved in this. Merchant credit and allowing farmers the ability to clear their merchant credit lines are essential. A situation will arise whereby farmers' lines of credit will be cut off when they purchase fertiliser. Lenders will say that farmers have exceeded their credit limits due to the amount of feed they have bought and, as a result, such farmers will not have access to fertiliser, which will exacerbate the problem going forward and increase the shortages for next autumn and winter. When there was a problem with the farm waste management scheme in 2008, the Department carried that interest cost for farmers and we need similar imaginative thinking this time around. The low-cost loan is fine but we must get the money to the farmers who need it most. It is essential that the Department become involved. If it has to carry the cost of interest to farmers, so be it. We must think outside the box. That was done when the farm management scheme had difficulties in 2008 and the Department carried the cost of that interest for farmers. Something similar must be done on this occasion.

We are currently concentrating on the livestock sector but all sectors suffered huge losses last autumn and winter due to flooding, wind and snow. There will be a loss in production as we go through 2018. The difficulties in terms of tillage, a failure to get animals out early and a subsequent loss of livestock weight gain, loss of milk yield in the dairy sector and mortality losses constitute a meltdown. The horticulture sector was severely impacted upon by Storm Ophelia but was not recompensed for the huge damage that individuals suffered and that must be looked at. We cannot just look at this winter. The losses that all sectors have suffered must be considered and addressed.

Knackery charges, which were increased very substantially due to the BSE crisis over 20 years ago, must be revisited. At the time, subsidies were introduced for some of them. We are now in a different era and the charges are adding huge costs for farmers who are suffering losses. That must be addressed.

There will be major ongoing issues in respect of cashflow and loss of production in 2018 and farmers need help. We must think outside the box. Merchant credit and allowing farmers access to such finance must be a priority. There will be a need for advice to ensure that stocks are replenished for the winter of 2018-2019. That will not be an easy task because there is currently no silage ground stock. The Minister's response to date has not been adequate. We must step up our efforts. All sectors are under huge financial pressure and what is on the table is insufficient.

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