Mr. Alan Jagoe:

I might come to Deputy Mulherin's comment last because it is something that is affecting me at the moment. I will start with Deputy Ferris's point about the ability of the dairy herd in Ireland post quota. Teagasc estimates that there is at least an extra capacity of between 15% and 18% within the current dairy herd, including calving patterns and milking later in the year. In recent years, due to the super levy, farmers were drying off cows in September or October, and as early as August last year. Therefore somewhere between 15% and 18% will be achieved through the natural herd as it is.

According to the Irish Cattle Breeding Federation, ICBF, the figures for next year show that roughly 3% extra heifers will be calving in the spring. That should not pose a super levy situation next year considering the bad summer we have had. However, for the following two years that figure will grow by approximately 8% and 12%. If these figures continue upwards it will result in us achieving the 50% figure.

Positive efforts are being made on the ground by co-ops. Last week, we saw Glanbia passing its first vote for the joint venture between the plc and the co-op to expand its business. We see the same happening at Dairygold. In west Cork, Carberry has extra capacity within its own capacity. Following its new acquisition of north Cork, the Kerry Group has less capacity. In Galway, following Connacht Gold's acquisition of Donegal Creameries that capacity is now there on the ground, barring that south-east Dairygold and Glanbia corner. That will be built in the coming year, however.

As regards means testing, I do not have the figures to hand. This year, Teagasc has implemented the first stage of a new means testing course. It is in its first year and it will be interesting to see how that will proceed at the end of this year. The number that will be availing of student grants coming from farming families is relatively small, but these young people do need support. The Deputy is right to say that it should be based on income rather than on assets.

As young farmers we are anxious to have land transfers but that is not happening, so we need to promote long-term leasing further. As the committee is aware, the whole conacre system in Ireland is proving to be a real headache for farmers, given the new CAP forthcoming in 2014. The conacre system has been there and in recent years long-term leasing has not been pushed or encouraged enough. Much of that has to do with the accountants, solicitors and auctioneers working with us, who can potentially lose business by farmers having long-term leases. That is because the relationship goes between both farmers instead of between the farmer, accountant or auctioneer, whatever the case may be. These are matters that we will have to address.

Senator Hayden mentioned farm consolidation which we are pushing hard on our agenda. We are proposing a new form of roll-over and are targeting young farmers under 35. If they buy a nearby farm to consolidate their farm and sell an out-block of land to purchase that, there should be no tax implications for the sale of that land. That information is in the document before the committee.

We want to see partnerships expanded into other sectors. I am in the milk production partnership and the benefits of such a partnership are immense. One has increased scale, efficiency and productivity, as well as a different skills set and mindset, which is all fantastic. If these partnerships can be expanded into beef, sheep and tillage farms there are endless possibilities and opportunities for them. In addition, the quality of life that goes along with it is crucial.

I know of two dairy farms in Kilbrittain, west Cork, which have a beef partnership in action. However, there is no legislation in place for them to go ahead. There are many examples of these unofficial partnerships across the country which would prefer if there were some legislative framework to give them some recognition. We are also very much for other collaborative arrangements be it in equity or other areas. For example, I have received telephone calls from five young farmers, one girl and four lads, who could not go home farming because the farms were either too small or there was a sibling there already farming. They were looking for other options to go into farming. For the past five years, these five farmers have been seeking ways of getting into farming, not as a farm labourer but as a farm manager or to go into partnership. They cannot find these opportunities in Ireland. One of the farmers, who happens to be a friend of mine, has farmed over the past several years in New Zealand and Australia. There he would be given a list of opportunities if he wishes to take up farming in either of these countries. Here in Ireland, that mindset is not the same. We are willing to go to whatever lengths to get young people into farming or expand enterprises but information and education must be targeted at the older farmer because there is a lack of knowledge at that level.

Senator O’Keeffe raised the issue of stamp duty relief about which we are very much in the dark. It is up for renewal at the end of this year. That is why it is at the top of our agenda. The relief encouraged the transfer of farms to young farmers before they reach 35 years of age. The culture among older farmers needs to be changed. Young farmers are bursting to get into farming and expand farming enterprises. They want to take on the world but the education campaign must be targeted at our senior colleagues. We must work with them and help them to change this culture.

Senator Comiskey raised the issue of putting land already used for forestry back into agricultural production. That is quite hard to do. The legislation is probably the simplest part of it. Putting such land back in dry stock or dairy production is very difficult to do. While I like the Senator’s sentiment, I do not believe it is possible.

On Deputy Mulherin’s point about planning permission, I applied for planning permission for a house on 3 January and only received it last week. It is a very vexing issue for young farmers. I am farming in partnership with my father now and looking to take over the farm ultimately. It took me 11 months to secure planning permission for a house next to the farm. The process nearly saw me have to locate the house a mile from the farm and even at one point next to another farmer’s farmyard. This was absolutely ludicrous. I was looking for a modest house, not a mansion, but it still took 11 months to secure planning permission on my own farm.

There are some preliminary results from Macra’s land mobility study. One interesting one is the need for a secondary income after retiring. Many farmers find the income they generate is absorbed into the business. Many farmers are concerned they will not have any further income once they transfer a farm.