Dr. Liam Hanrahan:

To further that point, I refer back again to the organic nitrogen limits. While the proportionality of the reduction in the organic nitrogen limits to the total nitrogen load is quite small, the proportionality of it from a viability perspective is massive. A 30% reduction in production when the fixed costs are already incurred is a massive reduction in profitability. We know that market volatility in certain years can put farmers under, particularly in the case of rented land in the system. The potential for upsets to the land market or the marketplace in general cannot be underestimated, be that the land market, the price of milk based on unused processing capacity or the integrated beef systems on farms. The majority of our members who are in efficient farming systems have a beef system or other systems that are integrated with their dairy herds. It is the other farming enterprise that will go first. Therefore, systems that we promote, such as integrated beef systems and finishing their own cattle, will be affected in a major way.

There was a major reduction in the value of dairy stock last year; in-calf heifers halved in value. In a lot of farms that sell surplus dairy stock or dairy in-calf heifers, a halving of the value of those animals had a major impact on their overall farm profitability for the year. It suddenly went from a profitable enterprise to a serious loss-making enterprise within the overall farm system.

As for access to finance and uncertainty with banks, even if a farmer is in a higher repayment farming system after investing in his or her farm, it puts a lot of pressure on if a loan was taken out under different pretences, which could have been easily done.

The negative changes to the system also need to be avoided. Dr. Snell has alluded to our grass-based system a number of times. Potentially, there could be farmers who wish to go to a higher input system. This is not as environmentally or economically friendly, in reality. We need to be able to utilise grass to the best use possible. If farmers did not have enough slurry storage, or enough money to invest in slurry storage or housing and end up without wintering systems in place, these obviously would not be ideal from a water quality perspective.

It comes back to what Dr. Snell stated on what good water quality is. We must target to get to a place where farmers are part of the testing and monitoring system or programme, where tools and technologies are available at farm level that can be tested. A lot of this would also be to your own benefit in terms of testing how well your nutrient management programme is working, that is, your nutrient use efficiency. We all know what the cost of importing fertiliser is. We must get the best use out of the nutrients we have. If they are being lost, that is obviously an inefficiency in the system. As for anything that can be done around testing, if X, Y or Z is not working, can that be changed to make another farming practice? We have to have a mentality around finding the best way of being part of that.

I thank the Chair.