Oireachtas Joint and Select Committees

Tuesday, 2 April 2019

Select Committee on Agriculture, Food and the Marine

Estimates for Public Services 2019
Vote 30 - Agriculture, Food and the Marine (Revised)

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

Deputy McConalogue spoke in detail on the preparations for Brexit and I will avoid duplication if I can. Last week, a Private Members' Bill was introduced in response to the crisis in the beef industry. A large amount of beef is exported to the EU market. There is very little recognition of how dependent the Dutch and Danes are on the UK market. In the case of a no-deal Brexit both countries will seek a home for their products, which will have severe implications on the beef and pig sectors here. There has not been much discussion on that matter.

The small number of farmers left in the pig sector have gone through an horrendous 18 months or two years. It looks like the outbreak of swine flu in China will come to their rescue and, hopefully, result in increased pig prices. The swine flu has been reported in China for about six months and it seems to be having an impact on pig production in China. The pig industry will disappear shortly if something does not change.

I welcome the presentation made by the Minister but I am disappointed it did not focus more on live exports. Only a small number of cattle over 12 months are being exported live at the moment. Deputy Penrose spoke about farmers' dissatisfaction with the grid. The only way to get competition among processors is through live exports. When we kill almost 40,000 cattle per week processors do what they like with the primary producer. That is what has happened for the past six months.

Another issue is the number of cattle the factories are producing. The Competition and Consumer Protection Commission, CCPC, must examine this issue. For two months, nearly 20% of the kill has been factory-owned cattle. Factories can manipulate the marketplace and control the price they pay to farmers. In the past five years, we have not seen beef prices increase due to scarcity because the factories are now able to control the market and put their own cattle into the system. In the past, cattle prices always rose as the end of the beef fattening season in the sheds approached but that no longer happens. The CCPC is well able to tell farmers what they can do but it is slow to get involved in the monopoly operated by the meat factories. That must change and it would give farmers some confidence to see some movement on the issue.

With regard to the grid, the way in which the flat classification works has changed in recent years. Cattle that were classified as grade 4 in the past are now definitely being classified as grade 3, while grade 3 cattle are being classified as grade 2. These changes in classifications should not happen if we want farmers to have confidence in mechanical grading.

On veterinary inspections, the Minister stated the meat inspection service will receive a substantial increase in funding. What was agreed following the strike in the sector and how much will the agreement cost?

Deputy Penrose spoke about the 2030 target for eradicating tuberculosis. Last Thursday or Friday, a farmer told me that his whole herd of between 180 and 190 dairy cows was to be depopulated. The first question he was asked was whether deer had been on his land. He replied that deer were constantly coming out of the plantations on to his land. A fortnight ago, he had a TB test done on his farm and his dairy herd was declared to have TB. Herd depopulation has occurred a number of times in County Tipperary recently and the common denominator has been deer encroaching on the land. Until we focus on the role deer play in the spread of tuberculosis, we will not get on top of the issue. There are people in Wicklow who have chosen not to keep cattle or bovine animals because they could never clear their farms of TB. Another bunch of farmers in the Killoscully area of Tipperary has heavy plantations and, unfortunately, their herds are all constantly locked up with TB. It is the same story in Rossmore. The vast majority of TB outbreaks in County Tipperary occur in areas frequented by deer. We must recognise that fact. A cull of deer or tests on the deer population would be very expensive but until we address the issue, we will not make progress in reducing the incidence of bovine TB.

The Minister referred to the working group on tuberculosis and the 3% of herds that will be affected by new restrictions introduced for cattle movement and the possibility of indicating on signs at marts how long it has been since a farmer last had a breakdown done on TB. Farmers will feel very disgruntled if no restrictions are applied to the movement of the deer that are causing TB outbreaks on their farms when the Department then undervalues the stock that leaves their farms. Discussions are needed before we bring in such restrictions on movement.

How many farmers are participating in the hen harrier scheme? How many of the farmers who applied to the scheme have not been admitted to it? It is grand to have a scheme up and running for the hen harrier. However, as I said when the scheme commenced, the barometer of its success would be if it restored the capital value of the land. The scheme has given some income to the farmers who have had their lands designated for the hen harrier but it has gone nowhere in respect of restoring the capital value of the land in question. Some land for planting was worth between €4,000 or €4,500 per acre but is now worth between €800 and €900 per acre because it has been designated under the hen harrier scheme. Until farmers are compensated to the extent that the capital value of their land is restored, the scheme cannot be deemed a success. How many farmers have availed of the scheme and how many applications have been refused? How many farmers have applied but were not accepted for the scheme?

The appeals process for the disadvantaged areas scheme was mentioned. I presume the Estimates make provision for successful appeals. When does the Minister expect the appeals process to finish?

The Minister spoke about young farmers and the different incentives available to attract young people to the farming profession. A scheme for young farmers is essential. We all know the figures on the age of farmers, which make frightening reading. A cap has been placed on the amount of incentives a young farmer can get. Given the increase in stamp duty to 6%, this cap will have a serious detrimental effect on the transfer of land. It restricts a farmer's access to stock relief. The Minister is shaking his head in response. I have tabled questions to the Minister for Finance and unless his answers are incorrect, the cap will have a serious detrimental effect on the incentives that can be availed of by young farmers. At first glance, €70,000 sounds like a big figure. However, if stamp duty of 6% applies on a farm of 150 acres, a young farmer will well exceed the ceiling. The cap will not allow stock relief or any of the tax incentives the Minister mentioned.

This barrier has to be re-examined. If I am wrong the Minister for Finance is wrong in his replies to me also, but we can discuss that.

The Minister mentioned TAMS, which I had brought up previously, and getting underpasses eligible for TAMS. There would be very significant demand out there for such a measure. Traffic flows on rural roads are increasing and herd sizes are also increasing. It would be good, if it was at all possible, to have underpasses incentivised. I could go over other items in the Vote but those are just the points I wanted to make. I await with anticipation the Minister's response to me on the €70,000 limit to incentives for young farmers.

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