Michael Creed (Cork North West, Fine Gael) | Oireachtas source

I thank the joint committee for giving me the opportunity to address it on the fodder shortages and my Department’s response in addressing them. We are all more than aware of the long difficult winter and late spring we have had, from which we are emerging, and the resulting pressures on the farming community. While I do not intend to go back over that period in detail, I will brief the committee on the actions we took at different critical times to address the emerging problems with fodder availability.

When it became apparent last autumn that some farmers in areas of the west and the north west were at risk of not having enough fodder for the coming winter, I asked Teagasc to prioritise the provision of direct support for those farmers through fodder budgeting and nutritional advice, not only then but throughout the winter and the spring. In time for the advance payment under the basic payment scheme in mid-October, I persuaded the European Commission to allow the highest possible advance under the basic farm payment scheme and the schemes covered by the rural development programme. By the end of the year, these payments had injected over €1.6 billion into the rural economy. Throughout December and into January I monitored the fodder issue closely through constant contact between my officials and Teagasc. I also received very valuable feedback from a fodder group that I had established, which was chaired by Teagasc and included representatives of all of the key stakeholders, including farm bodies, the banks and industry. To provide additional assistance for the affected farmers in the west and the north west in accessing and obtaining fodder from areas where supplies were available in the east and south of the country, I introduced a targeted fodder transport support measure, effective from 29 January, with an allocation of €500,000. Throughout this period and up to the present, the Department’s animal welfare helpline, supported by a dedicated team, has been available continuously. The team is ready to offer assistance to any farmer experiencing animal welfare issues, including the provision of essential feed, if required.

The unseasonably cold wet weather persisted right through March, resulting in tighter fodder supplies. Issues with availability became much more widespread throughout the country, including in the more heavily stocked regions of the south and the east. My officials arranged meetings with Teagasc and industry representatives on 29 March and again on 4 April, the second of which I attended, to gauge the levels of existing fodder supplies and identify what further actions might be appropriate. Teagasc and the co-ops continued throughout to provide direct support in fodder budgeting, while Teagasc established a fodder register to identify suppliers and buyers of fodder locally to encourage remaining surplus supplies onto the market. Immediately following the conclusion of these meetings I introduced a fodder import support measure, with an allocation of €1.5 million. This measure which came into effect last week, on 5 April, will run until 30 April. The measure which is being operated through the co-operative structure and other approved importers will give livestock farmers access to fodder from abroad without having to pay the full cost of transport. The allocation will support the importation of about 20,000 tonnes of fodder. The measure will be kept under review until the crisis is over.

By way of background for the committee, the measure is similar to that introduced in 2013 to deal with the problems encountered in the very late spring of that year, although it is worth pointing out that the 2013 measure was not introduced until 15 April of that year and was extended until the end of May due to the continuing poor weather. I considered that it was also timely to add flexibility to the existing national fodder transport support measure to make existing surpluses of fodder available to farmers in need in all affected areas. The measure now applies in all areas of the country; the minimum distance has been reduced to 50 km; the need for a fodder assessment budget has been removed, while the measure has been extended to include pit silage. The reduction in the minimum distance will support both the sourcing and supplying of fodder, while still respecting the normal local fodder trading arrangements.

I have taken other steps to alleviate fodder supply problems, where possible. Following liaison between my Department and the Department of Transport, Tourism and Sport, the Road Safety Authority has agreed to greater operational flexibility for road hauliers engaged in the transport of fodder and feed because of the increased demand. The closing date for grazing livestock on land containing the traditional hay meadow under the green low carbon agri-environment scheme, GLAS, has also been extended. Grazing by livestock is now permitted up to 1 May. The closing date for nitrates derogation applications has been extended to 30 April.

This will ensure agricultural advisers have more time to assist farmers in planning how to cope with current difficulties until grass growth resumes and ground conditions improve.

As regards payments, I mentioned my Department has paid out more than €1.6 billion to farmers since last October, including under the following schemes. Under the basic payment scheme, to date there have been 2017 payments of €1.17 billion to 123,500 farmers, that is, more than 99% of eligible applicants. Under the areas of natural constraint scheme, to date there have been 2017 payments of €203 million to 95,000 farmers, that is, 99% of claimants. Under the green low-carbon agri-environment scheme, GLAS, to date there have been 2017 payments of €167.5 million to 46,828 farmers or 98% of applicants. Under the targeted agricultural modernisation scheme, there have been payments to 3,560 farmers of €49.4 million to date; while under the sheep welfare scheme, 2017 year one advance payments were made in November 2017 to 20,700 farmers of €16 million. Beef data and genomics programme I and II 2017 payments commenced in December 2017 and €42.5 million has been paid to almost 24,000 farmers, while knowledge transfer year one payments commenced in October 2017 and more than €10 million has been paid to farmers to date.

These payments make a significant contribution to on-farm cashflow and we are continuing to make residual payments under some schemes. Our focus now is starting to turn to the balancing payments under some Pillar 2 schemes and I expect these to commence for the sheep welfare scheme in the coming weeks, followed by the GLAS scheme in mid-May. I also have been in contact with Commissioner Hogan to seek the possibility of bringing forward the date by which we can make these GLAS balancing payments.

I am conscious this prolonged winter will have put some individual farmers under pressure in terms of cashflow. In recognition of this, I have invited the chief executive officers, CEOs, of the main banks to meet me to discuss the current cashflow and liquidity position of the primary sector. I am meeting one of the banks later this evening and the others over the course of the next week. I will emphasise to them that they should recognise the nature of the current situation and I will ask that they should be flexible and put in place measures to support their customers. My Department liaises with the banks on an ongoing basis and the banks have indicated that there are no signs that there is a liquidity issue across the sector as a whole, while acknowledging that there may be pressures in individual cases. They have indicated to my Department that they have already stated publicly that they are aware of the current situation and will be flexible and provide supports such as extended overdraft facilities to their customers.

I would like to conclude by saying that as we finally navigate our way out the other side of this really difficult period, it is an absolute priority to make sure that in future years, we conserve enough fodder to deal with whatever winters may come at us. I am asking Teagasc to make this a matter of priority throughout its advisory campaign in the months ahead.