Oireachtas Joint and Select Committees

Tuesday, 15 May 2018

Joint Oireachtas Committee on Agriculture, Food and the Marine

Different Approaches and New Opportunities in Irish Agriculture: Discussion

3:30 pm

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

I welcome the Macra na Feirme representatives. The presentation was thought provoking and argumentative but that is the job of a young farming organisation and I would not criticise. In my view the greatest challenge that is probably facing us as farmers and young farmers going forward is the environment and its protection. There has to be use of technology. It is going to be a battle. Sustainability is going to be the key word going forward whether it is the new development going on in my own county in Lisheen where there is biotechnology being put in place for whey permeate and other residues from milk processing. They will play a huge part in confirming our status as a sustainable milk producer. I mention run offs and what can be done with modern technology. They all have a huge part to play. Mr. Healy emphasised labour saving devices and they are going to be extremely important but I would put even more emphasis on the environmental challenges that will face us.

I refer to Mr. Healy's thoughts on attracting young people into farming and the figures speak for themselves. The statistics are frightening when the number of young people who have control of land at the moment is looked at. At the end of the day, the ability to have land in one's name and to make the business decisions for that land is key. Mr. Healy talks about young farmer schemes and the need for succession and mobility, we see reports at the moment about the price of land leasing and how it is increasing rapidly.

Is this a barrier to the transfer of land to young farmers in the sense that established commercial farmers will be in a better position to pay higher prices? What are the delegates' views on farm succession? Anything with the word "mandatory" in it will be resisted with vigour. The farm retirement scheme served a useful function in the past as it allowed two families to live on the average family farm. With the loss of the scheme, farm succession and land transfer have definitely become more difficult.

We cannot ignore the fear among the older generation that a marriage break-up would create financial difficulties. The reluctance among members of the older generation to transfer land to younger family members is frequently the result of their fear that they will be made paupers. They are not reluctant to transfer management of the farm to the younger generation. It will be vital, therefore, to differentiate between farm ownership and management. In that respect, it helps to have a succession plan in place. Younger members of farm families want to manage farms to implement new ideas and ways of thinking. This should be the focus of the farm organisations.

Unfortunately, the roll-out of broadband to rural areas will be extremely slow. Mistakes have been made in rolling out broadband to rural areas, whereas urban and densely populated areas are being catered for. This week I have been contacted by three individuals who had expected broadband to become available in their respective areas very quickly, yet no progress is being made. As the delegates correctly noted, broadband is an essential tool and its importance can be compared with that of electricity in the 1940s and 1950s. I have concerns about rural Ireland in that regard. I am worried the more isolated areas will be left on a hind tit. Access to broadband is critical for everything we do in modern society and rural areas are being left behind. The company with responsibility for rolling out broadband services has not shown any great drive to extend the current broadband scheme.

The MilkFlex loan scheme must be recommended as it demonstrates forward thinking. The proposed concept is extremely interesting and I hope it will be adopted as it reflects the volatile nature of farming. For example, we had a difficult spring, which has created substantial costs for farmers. Building factors such as weather conditions and seasonal adaptation into loans is a good idea. It is a major step forward to provide loans featuring variable repayments to reflect milk price fluctuations. The younger generation of farmers will welcome the scheme which is still in its infancy and must be teased out. It was presented last night at another forum I attended and I believe it offers great potential. The low cost loans introduced in the 2016 budget were snapped up. There is an appetite for finance that is offered at a reasonable interest rate and provides for variable repayments based on profitability. The MilkFlex loan scheme is, therefore, extremely welcome and I understand the reason Macra na Feirme intends to push it strongly. It will have a major role to play in agriculture.

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