Michelle Mulherin (Fine Gael) | Oireachtas source

I met a group of farmers last week. It would be fair to say they represent a broad geographical spread but, mainly, from the south and the south east. Coming away from the meeting, one could not be but impressed by the stress that these farmers are under, not only about feeding animals but also the financial pressures. As one man put it, it is not only a question of no fodder - they have not funds to pay for fodder - as in some cases, because of their financial situation, they have no funds to pay for loans.

The credit side is critical. At this point, it is a key issue to be addressed. The Minister mentioned making a low-cost loan available to farmers shortly but the reality, as the figures in co-operatives and merchants would bear out, is that they are carrying more debt than ever, not only on account of now but in the past year. There is a cash flow problem across the board in this sector and a cash injection is required. I am very concerned.

The Minister mentioned the previous loan scheme that offered low-cost loans to farmers but capacity to pay is an issue. I take the point that not all farmers' circumstances are the same but some farmers are under severe mental pressure. From some of the stories we are hearing, it is quite desperate. We must adopt a holistic approach to cater for farmers in all circumstances so that in some critical cases, they do not feel like they have no place to go. They must have some place to go. They have no control over the weather. Many of them have ramped up dairy production. They have invested big time. They are repaying considerable loans and now they have this problem before them. The impression I got is that the finance side of it has to be sorted out and there has to be room for them to manoeuvre to restructure existing loans. That is critical.

Not everybody is being accommodated by merchants or the co-operatives. Not everyone is in a position to be accommodated. We all talk about the high interest rate overdraft cost of working capital. Notwithstanding the efforts that are being made, unless we put something clearly on the table that farmers can subscribe to that is away from the vagaries of the lending market and the banks, we are not tackling the fundamental component of the problem we have here which goes beyond fodder.

I welcome the work the Minister has been undertaking in Teagasc, the fodder production incentive and the fodder import support measure. Colleagues here have underlined the fact that there is a problem throughout Europe and there has been a drought throughout Europe, and it is not as straightforward as being readily able to access fodder elsewhere. We are in the eye of the storm and we have not taken all the steps we need to navigate our way out of it as safely as we can. There is a storm.

We also are faced with people shortly being asked to pay their preliminary tax bill. I refer to dairy farmers who will be asked to pay tax on the basis of whatever their incomes were last yea and to farmers who generally pay tax. In my part of the world, many farmers do not end up paying tax such is the low income that they receive. They were, however, in a position to cut second silage and are hoping to save it but the reality is, if one has suckler cows and beef, the farmers on whom they rely to finish off these animals do not have money to buy them. A few farmers I spoke to at Balla mart on Saturday last commented on the absence of the buyers who are normally there and that they are not happy with the prices they are getting for their animals currently. This has a knock-on effect. Farmers in the west rely on farmers elsewhere who are most badly impacted by the lack of fodder. There has to be some dialogue with the Revenue or there has to be some flexibility in dealing with these farmers. The Revenue, above all bills, is most feared for good reason. This is another financial difficulty or hardship coming down the line for these farmers.

On the crisis fund set up by the German Government, the Minister mentioned that Teagasc is seeing a national fodder shortage at this stage of 28%. In July, Dairygold in Munster conducted its own survey and came up with 25%. There is no reason to believe it is not worse. It would be in keeping with the figures of Teagasc. Bearing in mind that some farmers do not have the ability to repay, I wonder at what point the Minister will make decisions about making a similar fund available for farmers who are in dire straits because of the situation they find themselves in. It is serious for some farmers.

That brings me to another issue. Many of these farmers were concerned, not just for themselves but for their neighbours, about the emotional and mental pressure on farmers. They were concerned as to whether farmers are being reached out to in an appropriate and proper way, not only through words and counselling and support which we all know is important, but through solutions. There must be a port of call for solutions. They should know that there is always a solution, and that the Minister, working with all the agencies available to him, can bring about these solutions.

Farmers must be reached out to further as some people think they are in a very dark place at the moment. They are in a hole. I urge the Minister to take action as soon as possible, especially on the credit side.