Jackie Cahill (Tipperary, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

In this session we will discuss the future of the tillage sector and the nitrates action plan. I welcome the president of the Irish Farmers Association, IFA, Mr. Joe Healy, and the director general of the IFA, Mr. Damien McDonald. I also welcome Mr. Liam Dunne and Mr. Fintan Conway for the tillage discussion and Mr. Thomas Cooney and Thomas Ryan who will contribute to the nitrates discussion. I thank the witnesses for attending the committee today. As they know, this committee is examining the future for the tillage sector, and we are delighted the IFA representatives are in a position to contribute to that debate today. The witnesses were also invited to make a presentation on the key priorities for the IFA in the review of the nitrates action plan. Members of the committee thought it best to address both topics at today's meeting. We will begin with the presentation on the tillage sector, followed by a question and answer session, and then we will move on to the nitrates issue.

Witnesses are protected by absolute privilege in respect of the evidence they give to this committee. However, if they are directed by the committee to cease giving evidence on a particular matter and continue to so do, they are entitled thereafter only to qualified privilege in respect of their evidence. They are directed that only evidence connected with the subject matter of these proceedings is to be given and are asked to respect the parliamentary practice to the effect that, where possible, they should not criticise nor make charges against any person or entity by name or in such a way as to make him, her or it identifiable. I invite Mr. Joe Healy to make his presentation.

Mr. Joe Healy:

I thank the Chairman and members for inviting the IFA to address the committee today on the future of the tillage sector in Ireland, an issue of real concern to all involved. I am joined for the tillage presentation by Mr. Liam Dunne, who is a tillage farmer and the IFA grain chairman, and Mr. Fintan Conway, who is an IFA grain executive. I am also joined by Mr. Damien McDonald, our director general.

First, I thank this committee for its support for the IFA and farmers in securing a weather related crop loss scheme for affected growers in the 2016 harvest. Unfortunately, however, as I speak, a number of growers are struggling to complete this year’s grain harvest and to save straw, as the weather has taken a turn for the worse. It is vital we collectively devise an action plan to address the serious and deepening income crisis in the Irish tillage farming sector as we are now into the fifth consecutive year of low grain prices. This cycle looks set to continue given the forecast for high world carry-over grain stocks for the end of the current marketing year in June 2018 and intense competition from the Baltic and Black Sea areas. Current estimates put world stocks to use ratio for all grains at an all-time high of 23%. In light of this, we need to take specific actions to build a solid foundation off which we can revitalise this important sector. Failure to do so in a prompt and meaningful fashion will accelerate the decline of crop production, particularly in peripheral counties, further reducing biodiversity. Continuing low, if not negative, crop margins have seen a significant swing away from cereal production over the past ten years, with the sown area down by more than 142,000 acres or almost 20%. For the 2017 harvest, sowing was down by a massive 37,000 acres on the previous year. This trend is expected to accelerate as we look towards the 2018 crop. The prospect of another year of low grain prices will see many growers struggle to cover their production costs. Forward selling prices for 2018 are at a small premium to current prices but offer no real income-generating opportunity, assuming average yields.

In terms of an action plan for the survival of the tillage sector, since I took up office I have outlined that political intervention is needed on a number of fronts to revitalise arable crop farming. A vibrant tillage sector is the basis on which we can further expand our livestock sector and our world renowned drinks industry. Implementation of the following action plan is critical to the survival of a central element of our farming system. First, there is a need for the temporary abolition of the clawback on the sale of entitlements for tillage farmers who need to raise cash or stand back from taking overpriced conacre. Second, under the Common Agricultural Policy, CAP, post 2020, the stacking of entitlements should be reintroduced as an option for tillage farmers. Third, there is a need for a derogation for Ireland on greening requirements given our difficult climatic conditions. In that context, crop diversification rules exacerbated crop losses in 2016 and again in 2017, especially in coastal areas and western counties. Equivalence thresholds for the establishment of catch crops should be aligned with the crop diversification rules and not at 100%. This would deliver greater environmental benefits, reduce unnecessary bureaucracy and increase biodiversity.

The fourth element is the reintroduction of the Strategic Banking Corporation of Ireland, SBCI, agriculture flow loan support scheme to give greater access to competitively priced credit. The scheme must be expanded in order that tillage farmers can access affordable credit on an ongoing basis, particularly given the fact that many of our EU colleagues can access funds from 1% to 2%.

Fifth, we need full support from all industry stakeholders for the use of native Irish grain. It is unacceptable that native grain continues to trade at a discount to imported, given that Ireland is not self-sufficient. In that context, we also need mandatory Department inspection and screening of grain imports to exclude economically damaging weed seeds such as black grass and sterile brome. Furthermore, we need to see the establishment of a certification scheme to maximise the use of native grain and proteins in Irish livestock rations as well as increased use of native grain and Irish malt in the production of Irish whiskies and artisan or craft beers to grow our malting barley sector.

The sixth element is action by the EU to lower input costs. This would include support for the IFA case for the immediate suspension of anti-dumping duties on ammonium nitrate and the abolition of tariffs on fertiliser imports. EU fertiliser manufacturers have pushed through significant price increases in recent months, with CAN prices now up €50 per tonne over the past three months. This is despite the fact that natural gas prices remain significantly below historical levels. The retention of key active ingredients, including glyphosate, triazoles and diquat, among others, is needed to ensure we can produce competitively priced produce. We also need to see a review by the Directorate General for Competition of the cost of plant protection products.

The seventh element in our action plan is stronger tillage sector support under various farm schemes, including a specific environmental payment to encourage beneficial crop rotation and increased funding to allow for the expansion of the protein crop area eligible to receive the full coupled payment.

The eighth element is the development of a national policy on the bio-economy including the roll out of a properly targeted renewable heat incentive, RHI, scheme to drive on the development of a successful bio-energy sector using crop residues and funding for the development of regional biomass trade and logistic centres that optimise the sustainable mobilisation of Ireland's biomass resources.

Collectively, we need to devise and urgently implement a robust action plan to reverse the dramatic fall in tillage fortunes. The sustainability of our livestock and drinks manufacturing industries are dependent on a vibrant arable crop sector. An increased reliance on grain and non-grain feed ingredient imports will undermine the provenance of the Irish food brand. National policy must instil confidence in growers showing that the Government is serious about revitalising the tillage sector. The development of a targeted tillage action plan will send a strong message of support to all growers.

Jackie Cahill (Tipperary, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I thank Mr. Healy. The first one to ask questions is Senator Tim Lombard.

Tim Lombard (Fine Gael)
Link to this: Individually | In context | Oireachtas source

I welcome the statement by the president of the IFA. It is a very powerful one which outlines where this industry is at the moment. We are at a crossroads. That has been mentioned previously in the context of contributions we heard earlier today. The biggest issue I can see at the moment is a lack of confidence. We have had four or five years of exceptionally bad prices and as milk and other commodities have been going well there has been a major shift away from grain to the dairy industry in particular. It is all about trying to rebuild confidence.

One of the issues Mr. Healy did not mention was the CAP and where that is going in the next few months. Does he fear that with the proposed renegotiation of CAP, in the context of Brexit, tillage farmers will be more affected than those in any other sector? Historically, they had higher payments than farmers in the dairy industry. Would the knock-on effect of that signal the death knell of the industry? Is that one of the key issues we need to consider in the context of the renegotiation of the CAP?

Mr. Healy referred to the world price. There have been many good years around the world but, unfortunately, in Ireland we have not had such good weather in the past two to three years and we have suffered because of it. Does he think the world price of grain has deflated the market and we are now looking at a surplus for one or two years or that a world event would change the price of grain? In my view the price of grain is at an all-time low. I do not expect much of a lift, if any, next year. It is possible that such a price for grain would be sustained in the future and that would have a huge knock-on effect. I will leave it at that.

Charlie McConalogue (Donegal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I thank Mr. Healy for his very clear presentation and for outlining his key points and suggestions as to how the decline in the area under tillage can be addressed. The issue is of concern. This year, the area under tillage has reduced by 5% compared to last year. That is a significant reduction in one year alone. As Mr. Healy outlined in his presentation, tillage is down 20% over the past ten years. With current conditions and prices, it will be very difficult to prevent a further reduction in the area under tillage.

Mr. Healy mentioned that native Irish grain is continuing to trade at a discount compared to imported grain. That is a concern. Could he elaborate on the dynamics behind that and how he feels that could be addressed? Could Mr. Healy outline how the price of native grain could be improved? I am interested to hear Mr. Healy's perspective in terms of having to compete with GM-produced grain and other crops and how that is impacting in relation to the profitability of the native crops. One of Mr. Healy's suggestions relates to the establishment of a certification scheme to maximise the use of native grain and protein in Irish livestock rations. I am interested in hearing more about how he would see that being developed and how it would work.

Mr. Healy touched as well on the bio-economy and the bio-energy sector using crop residues. I am interested in hearing his further perspective on the potential for bio-energy and increasing the area under crops in order to develop that sector. I would like to hear his thoughts on what would be required to do that. I am also interested in hearing Mr. Healy's perspective on the potential for sugar beet in the bio-energy sector.

Martin Kenny (Sligo-Leitrim, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I thank Mr. Healy and welcome all the witnesses. We dealt with many of these issues with the previous group that was in before the committee. One of the things that struck me was malting barley and how the drinks industry presents a significant opportunity, yet we find that quite a percentage of the grain it uses is not Irish grain. Is one of the ways of assisting the industry in Ireland to put a regulation in place to ensure that ingredients for drinks products from Ireland, be they whiskey or beer, would have to be Irish produced?

A large amount of animal feed is imported into this country. I accept price is the big issue in that respect. We have the Origin Green initiative and there is a drive towards quality and traceability and promoting our meat and dairy products as premium ones. How much additional hectarage would we need to produce in this country in order to change the situation? Is it possible to do that? I am very conscious that grain and tillage is a very good land use from the point of view of the environment and is a better carbon sink than forestry or other areas we are promoting and spending a lot of money on. I am interested in hearing Mr. Healy's comments on those points.

Mr. Joe Healy:

I will hand over to my colleagues in a few minutes. On the CAP, we referred to the stacking of entitlements. I came across quite a few farmers this year who would gladly give up land based on the few bad years they had. I came across one of them in Deputy Cahill's county of Tipperary. A dairy farmer outbid him for the land that was near him and he had to take land 30 miles away. That added extra costs and he would gladly have stacked his entitlements on the acres and sown a lot less.

Last year, we invited the Minister to a council meeting to launch an-all Irish grain formulation made up of wheat, oats, barley and beans. We ran a few campaigns. One of the campaigns was to try to include that as an option for farmers when they go to their local merchant or mill. We also had a very strong campaign on increasing the percentage of Irish grain in the rations. We took samples from two boatloads last year, one in Foynes and the other in Drogheda, and they showed the imported grain to be of inferior quality to what we have here. Mr. Dunne and Mr. Conway were centrally involved. Another concern was the presence of the two weeds I mentioned earlier which are detrimental to the Irish crop, namely, the sterile brome and the black grass. That is something on which we will need to keep a close eye.

My final point relates to malt and barley. There is potential in these areas and the IFA has been pushing hard for them since 2009. There was a market for 60,000 tonnes in 2009 and the combined work of the IFA and Boortmalt has today grown that to 140,000 tonnes. That is an increase of well over 100%, with the target to go to 200,000 tonnes in the not-too-distant future. Deputy Martin Kenny mentioned the potential for malting and that is very much the case. I will now hand over to Mr. Dunne or Mr. Conway to go into some of the specifics in more detail.

Mr. Liam Dunne:

I will go back for a moment to the issue of world market prices and where we are after five years of a flat price. This is interesting to look at because we have not had a flat price for so long in well over 100 hundred years. It is really quite extraordinary; it is even ore extraordinary when we stop to consider that the French lost a quarter of their harvest in 2016 without this having any effect on the market. Many people have asked the question: what would it take to change this? The impact of a world weather event was mentioned but I am not so certain that even a hurricane in the north Atlantic would make any difference at this stage.

Something has happened behind the scenes, however, which people may not realise and which is having a huge effect on matters. In 2009, the G20 world leaders expressed concern that prices had been going either through the roof or through the floor right between 2006 and 2009. When prices go through the floor, the producer gets hammered. When prices go through the roof, the consumer gets hammered. The people making money in between, of course, are the traders, particularly if they can spot these trends in advance. Apparently, the G20 leaders were particularly worried about this. They highlighted the problem and engaged people to do some work on it. In 2013, a new system called the agricultural market information system, AMIS, was introduced whereby all the producer and major consumer countries and blocs made their data available in confidence to each other. As the committee will be aware, in most countries it is not commercial bodies that carry out the trading, producing or purchasing of grain: it is governments. Those governments then put the figures out. As of June 2017, only two countries have not participated in this system, namely, Nigeria, which is a major consumer, and Kazakhstan, which is a major exporter. The system provides information to anyone who wants to buy at any given time. Last year, for example, the Egyptians wanted to buy French wheat. When they saw that the French harvest was in disarray, all they had to do was examine the system and see where there were plenty of other supplies of wheat.

While there was always an understanding that somewhere between 15% and 20% was necessary as a kind of floating stock, it would now appear that this level could probably drop far lower. The AMIS system has had the effect of driving the price down as far as it can possibly go and keeping it there. Until that figure of 23% of stock starts to change - by which I mean drops below 15% - it is unlikely that we will see any increase in price. We are clearly in a devil of a pickle. We are in a high-cost area of production and while we can produce good yields, good quality wheats, by which I mean hard wheats and so forth, are difficult to produce. Wheats for human consumption are difficult for us to produce. We can produce animal feedstuffs to a large extent, but this is a high-cost country. Almost everything we need in order to produce our grain has to be imported, which leaves us very exposed.

When it comes to the actual physical importation of grains into this country, it is worth noting that we could shut down the 2 million tonnes that we produce and import it all instead. We could probably get it even more cheaply if we wanted. There is, however, a very important environmental issue that needs to be considered. Recently, I saw a statistic showing that diesel engine cars in Europe outnumber those in the rest of the world's countries put together. In other words, Europe has more diesel engine cars, vans and small trucks than anywhere else in the world. The fact is however, that 16 major ships at sea will produce more emissions than all the cars, vans and trucks in Europe. We can rely on imports if we want to but there will be an environmental impact. I am quite certain that there are lots of farmers throughout the country, many of whom who use balers or combine harvesters, who are scratching their heads and wondering if what they are looking at is climate change. Is this country going to be a virtual no-go area for certain activities? Can we continue with such activities?

A farmer will look at three things at the beginning of any harvest: he will look at his crops and hope to have good yields; he will look at the weather and hope to have good conditions for the harvest; and he will look at where prices are and hope to get a decent return for his yields. The farmer can probably cope with a misfire in respect of one of these three factors. Last year and again this year, however, we are looking at two misfires so farmers are in a very bad way indeed. Many of them are very seriously considering whether to resow. As the committee is probably aware, resowing would generally be starting at this stage of the year. We have lost 500,000 tonnes of production between 2015 and now. In 2015, we produced 2.6 million tonnes and this year we are producing barely over 2 million tonnes. Our current guess is that we could easily lose another 500,000 tonnes between now and next year. Many people, including a sizeable number of the bigger growers, are thinking of getting out of the whole sector. We are at crisis point.

I spoke to an agricultural journalist today who thinks that the drop could be as significant as 1 million tonnes. That is how negative the sentiment is at the moment. There is nothing to help or support people in getting through this harvest, mentally as well as financially. That is one of the reasons we are looking at a claw-back on the sale of entitlements because it is one way whereby farmers could make some fairly fast money to help with their debts. It costs approximately €400 to grow an acre of cereal. In almost every case in Ireland this year, the acres of cereal harvested are done so at a loss. I can only leave it to the committee's imagination as to what happens when it is not harvested, but we went through that last year. We still have our fingers crossed that crops are holding up reasonably well but there is going to be a serious loss of straw out there at this stage, regardless of whether we like it. I have no idea what implications that will have for the rest of the winter. I apologise for staying on this topic, I had better move on a bit.

Deputy McConalogue referred to the drop in production and where matters currently stand. As Mr. Healy mentioned, the IFA's whole problem with the fact that our grain was being discounted against imported grains remained the case until last year or so. The actions that we took last year highlighted to a lot of farmers what imported grains actually involve. When we checked back on the situation, we discovered that poor-quality grain was being harvested in the United Kingdom, put straight onto boats and shipped over here. That is what was going on. We are in a deficit for feed wheats and this year, for example, we know that wheat came into Ireland that was rejected by some of the compound mills. I was talking to the chairman of the pigs committee recently and he mentioned that a number of his members are complaining bitterly about the fact that some of the Ukrainian wheat is certainly not up to scratch either and is giving them very poor results. If we leave ourselves at the mercy of imported grains, we will very much be at their mercy. They are not as good as what we produce ourselves but there will always be people who put out a ration to farmers at an attractive-looking price. That is the situation.

I now come to the GM issue. As Mr. Healy mentioned, members might be interested to know that the IFA has produced a leaflet on the subject of the all-Irish rasher, what is involved in it and how it can be achieved.

In order to get enough protein into it, it is done with an alkali treatment and beans are included. Both Dairygold and most of the major merchants have told us already this year - we have not met with Glanbia yet - that they will take as much beans as they can lay their hands on but at a price, of course. We need the support we have been getting from the EU on beans. That support has kick-started the whole protein industry here. We need to push it on further but we need more support. We are looking for that in the next round of CAP reforms.

On Energia and sugar beet, the EU is determined that the next round or second generation of energy crops will not impact on tillage land. This policy is causing much concern and that crops such as oilseed rape may disappear from our repertoire which we cannot afford. We would love to go back growing sugar beet. If it becomes economically viable and possible, we will be the first to stand up and push it on. The figures, however, suggest it is not likely to happen in the near future.

Mr. Joe Healy is correct on malt and barley. When production dropped as low as 60,000 tonnes, the first thing we had to do was grow the industry. There has not been any investment in additional plants for processing malt and barley. Without giving away my age, the last plant I recall being built was in Athy close on 50 years ago. It is on the cards that we will see growth in this sector. The existing plants are working at maximum capacity but we need further development with new plants put in place.

There are only two countries in the world where malt and barley processors work hand in hand with farmers, Ireland and the Czech Republic. In every country, there is always a third party in between. We have pushed this industry as far as we can, getting every last penny in premiums we can, knowing each one is going back directly to the farmer, with no middleman like in other countries. In the plant in Cork, the barley is assembled by Dairygold and Glanbia which does not happen with burnt malt.

Animal feedstuffs are where it is all at. If we are going to produce high-quality Irish milk and beef, we are adamant the animals should be fed on an all-Irish ration. How do we get there? The proposal we put to Dairygold the other day was that it may have to put out contracts to farmers to grow barley. We proposed that it gives us the base price, the international trading price, but top it up with a serious premium. Giving a premium of €5 to growers is not sufficient from a co-op. If it wants stubbles for the excess slurries and municipal waste, then someone will have to grow it and something extra will have to be paid for it.

Many growers in the west complained to us last year that they did not count and we in the east would be just as well happy to see them disappear. I told them this was not the case as every acre of grain in the west is worth twice what it is anywhere else because of its effect on biodiversity, that the stubbles are there and the grain has a short distance to travel.

Marcella Corcoran Kennedy (Offaly, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Will Mr. Joe Healy expand on his point about the crop diversification rules being an issue? How would the certification scheme work with guaranteed Irish? Will the opportunities for growing more winter crops help solve some of the issues around harvesting and moisture content?

Paul Daly (Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I welcome the deputation and thank it for its report.

Will Mr. Joe Healy elaborate a little more on the action plan? I know none of us can control the weather. Farmers in the north midlands and the west have got a hammering in the past two years and this year is no better. Earlier, I told of a case of a neighbour of mine who drove a combine into a 14-acre field three weeks ago and only finished harvesting last Sunday evening. There is no way he will go back to tillage. If he does not, what alternatives does he have? I know this is due to the weather and we might have a good year next year. However, Mr. Liam Dunne said farmers are frustrated. What is the alternative? One cannot advise a farmer try it again. The old adage kicks in about repeating the same action over and over again and expecting a different result.

I grew up on a mixed farm which are far and few between. It was farmers to go one or the other. There was no crock of gold, however, in whatever sector they chose. The deputation could be here next week with a beef crisis and the following week a milk crisis. How are we going to get a farmer to make the sea change? We are going to have to start increasing to maintain the status quo. It is obvious the day is long in some areas but it is worse this tillage crisis is going to get and farmers are going to pull out. Even if the requests in the action plan were worked on, farmers on the ground are left with no choice but to leave tillage due to climate reasons. The answer from the last group was about moisture content and yield on the weekend of the Leinster final. In other words, sow winter. In the areas I am referring to, one cannot harvest in September and October and one will certainly not be sowing then. That is not a viable answer for those farmers. There must be some solution for them. What is plan B for them when they say enough is enough?

Jackie Cahill (Tipperary, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The abolition of clawback on the sale of entitlements and stacking was referred to. Whatever about stacking, they are keeping their single farm payment intact. Looking for farmers to sell their entitlements, some 85% of their income, is like putting up the white flag for the industry. They are already under severe financial pressure with the single farm payment. If they let it go, how can they produce grain?

If ever a cartel operated, it is in fertiliser prices. Once the milk price gets anywhere into the high 30s per litre, the fertiliser price goes up. I know the IFA has done great work on tariffs. However, the fertiliser price cartel needs to be broken because it charges whatever farmers can afford to pay. It affects all sectors, not just tillage. Over the past three weeks, the price was €30 a tonne. There is absolutely no justification for it whatsoever. We need to focus on this for all sectors.

Mr. Joe Healy:

We are trying to attack the input costs. Deputy Cahill is 100% correct on fertiliser prices and the fact there is no justification whatsoever for the price over the past several weeks.

The point is to try to get more competition and get the import duties and the anti-dumping tariffs scrapped. A vast amount of work has gone into it. We travelled to Russia and the Ukraine last year for the International Fertilizer Association conference. We went to bring attention to this and to the need for action to be taken. We have done considerable work at European level with the other farm organisations throughout Europe. We have secured their support for it and we have worked with the various Commissioners as well to get some movement on both duties.

The IFA commissioned the International Food Policy Research Institute to do a report on this two years ago. In February 2016, the institute published the report, which indicated the anti-dumping duties and the import tariffs were costing European farmers to the tune of €1 billion extra on fertiliser bills. In Ireland, the cost was between €30 million and €40 million. If we take the pig and poultry sectors out of the equation, fertiliser is the greatest single cost on Irish farms. It is a key cost and that is why the IFA spent so much time on it last year.

Another area we worked on involved making the Strategic Banking Corporation of Ireland agriculture cashflow support loan scheme available to farmers at rates considerably below what farmers are paying at the moment. We are lobbying on the matter again this year. The IFA and our French colleagues led a campaign last year for a licence for glyphosate, which is crucial for all farmers but especially those in the tillage sector. These are some of the things we have control over. We do not have a great deal of control over world production, but where we have control over things we try to do whatever we can.

I will hand over to Mr. Conway and Mr. Dunne for comment on some of the other issues relating to crop diversification, crop certification and opportunities to grow winter crops.

Mr. Fintan Conway:

I will deal with the fertiliser question. The Commission has initiated an investigation into anti-dumping duties. We need political support, and we need the Minister to tog out on this issue. At this point, we do not have a lead country for targeting the tariffs. I will try to put this in context. In the tillage sector 20 years ago, the cost of fertiliser accounted for approximately 15% of the variable costs of production. Today, the corresponding figure is 40%. If that was put right straight away, it would make a major difference to our side.

The other issue clearly in vogue is the availability of plant protection products. If they are taken from us, we will not be in a position where we can grow crops. This is not simply an issue for Ireland; it is an issue for all of Europe. Farmers in the Mediterranean countries need insecticides and farmers in the northern European countries need fungicides. That is clearly where it is.

Mr. Dunne will deal with the certification.

Mr. Liam Dunne:

Before I do that, there are a couple of points on the fertiliser question that are interesting to note. To the best of my knowledge - I am nearly sure I have this correct – since the EU was set up, no voluntary organisation has ever managed to persuade the EU Commission to start an investigation into any industry. This is the first time it has happened. We are minnows In the tillage sector in Europe so for an organisation such as the IFA to have achieved that is something major in itself. We could really do with the wholehearted support of the Government in what we are doing. That would make a major difference.

Another point is worthy of note. We had a paper from a Russian delegate at a conference. He was going through the money being spent in Brussels on lobbying and he examined all the lobbying. Committee members present will know better than me that people have to declare the money they spend on lobbying and so on. The first on the total list – it was not an agricultural list – was Fertilizers Europe. Tobacco and petroleum lobbyists were in second and third places. Fertilizers Europe members do not sell any product directly to what we call normal consumers – I mean the person in the street - they only sell to farmers. People should ask why on earth that organisation is spending that kind of money. The amount of money it was spending was one and a half times as much as the next on the list, which was the tobacco lobby. If we stop to consider it, it is clear these are massive figures. For a country like Ireland to take on such a powerful unit and get this issue to where it is now is a point worthy of note.

Crop diversification was part of the greening brought in last year. Many environmentalists in Europe were rather concerned that in some parts of Europe, one could be driving for miles and see only one crop. When they first introduced this into the negotiations, they had figures as low as 2 ha and 3 ha of crops. A farmer had to have more than 1 ha, which was ridiculous. Eventually, they brought it in at a higher level. It is relevant to Irish levels of production. Most farmers, once they get over 10 ha, have to grow two crops. If a farmer has over 30 ha, he has to grow three crops. Most farmers in this country with over 30 ha would normally be growing three crops anyway. Our greatest problem is with farmers who are in the middle band and who have to grow two crops. I have received numerous telephone calls from people who are in that band, especially this year and last year. Traditionally, they would have grown spring barley in counties Galway, Donegal, Cork and Kerry. That is what the demand is for locally - their neighbours would buy it off them and the local merchant would trade in it. Many in these areas had to turn around and grow a second crop. If a farmer is in an area of the country that has high levels of winter rainfall, he is not going to sow winter crops because they simply will not survive it. The country tends to have wet winters. We are not like the Russians, who sometimes suffer from frost kill because of the cold. Water is more our problem. As a result, most of them have to grow a second spring crop. The only option they have left is spring oats.

I talked to Pat Ryan from Liffey Mills at the ploughing match. He said he has spring oats coming in at the moment. They are poor quality because of the wet weather and he says he has no market for it. Under these regulations, farmers are being told that they have to grow crops for which there is no local market. There may well be a market somewhere else, but not locally. This is the problem.

We managed to persuade the Commission to put in an alternative measure called equivalence. Under equivalence, if a farmer is in an environmental scheme, such as GLAS, he can elect to grow only one crop but he must put in a percentage of catch crop to make up the difference. Since he is doing one instead of two, he has to put in an extra measure. The EU Commission has insisted on 100% catch crop. Only 22 farmers in Ireland are attempting to do it. Last year was the first year and this year is the second year. All of them are in trouble, because trying to put in catch crops at the moment when the ground either has a crop in it or has straw on it is virtually impossible. We have said to the Commissioner every time we have met him that we want the 100% requirement changed back to an equivalent of the amount of crop that a farmer has altered and taken out of the system as such. That percentage should be sufficient. We would even be prepared to take twice that percentage and we could still live with it, but 100% will not work.

It has another knock-on effect on malt and barley. This relates to the areas of the country that grow good malt and barley. It is not possible to grow it anywhere in the country, although I know small amounts are grown in Galway.

In the area where it is grown farmers traditionally just grew malting barley. Now, many of them find they must grow other crops to cover themselves but they find it difficult to put in the extra cash crop. We are looking for relatively small change. The Department of Agriculture, Food and the Marine has been completely behind what we are doing, but the Commission has not been prepared to move and we have brought it as far as the Commissioner. This is what the issue is about.

On the sale of entitlements, the problem is farmers who need to fulfil all of these entitlements must have the land. If the entitlement is more than what the home farm is worth, and remember that 40% of the cereals grown in Ireland are grown on rented land, the farmer must rent extra land. Most tillage farmers do this and there has been quite a strong tradition of this. Given the pressure on farmers' income at present, and the pressure from other farmers wanting to expand dairy herds, people have no option but to travel longer distances to try to fulfil these entitlements. We ask the Government to give us the opportunity to let these people sell some of these entitlements and get out completely. Many of them are badly strapped for cash after five years and they really need this cash injection, which would make a difference. It would allow them to downsize. Effectively what is happening is the industry itself is downsizing because there is not sufficient income in it. We will have to allow it to downsize and at the same time make sure it survives. It can survive, but it needs the total and utter support not only of the Oireachtas, but also the rest of the stakeholders. The co-operatives and merchants have massive role to play in giving this support.

It is not just grain that is being produced as there is also straw. One of the placards that kept getting attention when we protested at the boats last year was the sign that stated there was no straw on the boat. I am reliably informed that in the UK there is a big demand for straw to go to Poland at present. Somebody who returned from Scotland two weeks ago told me that a 4x4 round bale of straw in Scotland was making £34 in the field. Scotland is also way behind in its harvest.

With regard to what to say to farmers who have come to the end of their tether, it is very difficult. If the weather is the major part of the problem in their area they will have to look at grass. Three weeks ago, a contractor in Galway told me he had 1,500 acres of ground ploughed for grass seeds but had not managed to sow any of it. I believe he has done so in the meantime. This much area is going to grass at present. A farmer I spoke to today told me he will fallow half his land for this coming year. If it costs money to grow a crop, in other words when people are still at a loss after they sell it and must use their single farm payment to pay the difference, they are better off not sowing it and just leaving the land idle. Unfortunately, this is where we are at and it is serious.

Deputy Corcoran Kennedy raised several points, but I am afraid I did not make a note on them and I ask her to come back to me with them.

Mr. Fintan Conway:

To answer the question on the reason for the certification scheme, we sell malting barley at a premium to other countries because we build and sell the concept of Irishness. This is where we need to go with the feed grains. We need to build a concept that Irishness is worth more. It does work. We have the biggest brewers in this country by virtue of the fact they use 100% Irish malt and they are able to sell the concept. We need to get the same with whiskey manufacturing and distilleries. Unfortunately, they rely heavily on imported maize. It is for us to sell the concept that more Irish barley needs to be included. If we can do this we can build premium around a product. We need to do this with the totality of what we produce in Ireland.

Marcella Corcoran Kennedy (Offaly, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Between them, the witnesses have answered all of my questions.

Pat Deering (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I apologise for not being here earlier and perhaps my question was answered earlier. What percentage of tillage farmers sow corn on their own land as opposed to conacre?

Mr. Fintan Conway:

It is 40% on conacre.

Pat Deering (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Is that short-term lease or long-term lease?

Mr. Fintan Conway:

Many of them are short-term leases. It is predominantly short-term leases.

Pat Deering (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Generally speaking, are the people who do this exclusively tillage farmers or do they also have cattle or sheep?

Mr. Fintan Conway:

It is predominantly the bigger farmers and specialist operators who are on conacre or leased land.

Mr. Joe Healy:

Glyphosate is a crucial issue at government level, and the Minister in particular needs to try to push it as hard as possible. The pace it is gathering at European level is incredible, given there is no science to back up the argument on the other side. It beggars belief. We would like this message to be passed on. Unfortunately, the French President, Mr. Macron, did not do us any favours last week in one or two of his statements. I would like the committee to pass on this message.

Pat Deering (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The point might have been made earlier, but it is topical that we are discussing the tillage sector in view of the difficult harvest we have had in recent weeks. When the committee was established last year we felt this body of work needed to be done and that we needed a discussion about where the tillage was going and its future viability. This is the beginning of the process today. We spoke to another group earlier, and next week representatives from the organic sector and Teagasc will come before the committee to give us background on where things are and where they may go in future. Our job will be to produce a report in the coming weeks on the viability of the sector, where it is at present and where it is going. The input of the witnesses before us and other groups is important. It is topical because of the difficult harvest we have had, which is why we are having this discussion.

Mr. Joe Healy:

Last year, when we came before the committee to discuss the weather crisis the bigger picture was raised.

Pat Deering (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context | Oireachtas source

That is right. Unfortunately, we cannot control the weather.

Mr. Joe Healy:

None of us can do that. We acknowledge the support of the committee for the weather crisis fund last year. It really helped us along the way. Now we ask for help on glyphosate and whatever help the Minister can give at European or Government level on fertiliser, the anti-dumping tariffs and import duties. Mr. Conway gave figures that fertiliser has increased from 15% of the variable costs to 40% of the variable costs. This is a big area that can help the tillage sector if the push comes on.

Mr. Liam Dunne:

Something we have not discussed, but which the Chairman mentioned is organic production. It has become quite fashionable throughout Europe and other parts of the world for people to want to buy organic produce. There is a difficulty with organic production. In a country such as this, which is naturally a grass growing country, anything coming from beef animals and dairy produce can be done organically without any great difficulty, but when it comes to the tillage sector several serious issues arise. We have many grass weeds and other weeds in a wet climate, and we also have many wet diseases, which cause a huge number of problems. We must also have a major supply of organic fertiliser, which we do not have, for organic cereals.

It is a small sector here. It can be done but the amount being produced and the risks involved are very high and it is very difficult. Organic cereals are probably better produced in a drier climate than ours. I know some farmers who are quite successful at doing it, but the quantity they produce will always be very small.

Pat Deering (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context | Oireachtas source

We will have representatives from the organic sector before the committee in a few weeks time and that will fit into the whole process. I take it we are all happy with that section.

We will move on to the next section we are here to discuss, namely, the review of the nitrates regulations. I will hand over to IFA president.

Mr. Joe Healy:

I thank the Chairman and the members for hanging on. I will do as Micheál Donoghue did with the Galway team and bring in our two great substitutes who will win the final for us.

Pat Deering (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The president has confidence in them.

Mr. Joe Healy:

We have absolute confidence in them. We are joined by Mr. Thomas Cooney, our environment chairman, and Mr. Thomas Ryan, our environment executive.

The current review of the rules surrounding the use and management of nitrogen and phosphorous on Irish farms provides a real opportunity to reverse decades of declining soil fertility levels and ensure Ireland's farming sector is well positioned to sustainably grow agrifood exports over the next decade to almost €20 billion and create 23,000 jobs in the sector. Farming and the wider agrifood sector is the backbone of economic activity in rural Ireland, undertaken in every county and parish. It is also Ireland’s largest indigenous sector, providing employment to more than 300,000 people directly and indirectly.

Despite wider economic challenges, exports from the agrifood sector have grown by more than 50% since 2009, reaching more than €11 billion in 2016. This growth has been delivered through increased efficiency and better use of resources. For example, since 1996 cattle numbers in Ireland have reduced by 1 million, greenhouse gases have declined by 4 million tonnes and rivers considered to be seriously polluted have declined by 92%.

This good work is underpinned by a high level of collaboration in the sector. Initiatives such as the Smart Farming programme, which is led by the Irish Farmers' Association, IFA, in conjunction with the Environmental Protection Agency, EPA, and the IDIA’s, dairy sustainability initiative supports strong Government policies, for example, the green low-carbon agri-environment scheme, GLAS, which has almost 50% of its measures aimed at improving water quality. However, challenges remain, the national population has increased by over 1.1 million during the past two decades and 43 local authority-Irish Water sites are still discharging untreated sewage into rivers and lakes. This, without doubt, is contributing to a decline in the number of high quality river sites.

Despite these challenges, this current review must be used to build on the progress made by the farming community, whose investment of €2 billion and support from Government in bringing farmyards to the highest environmental standards is paying a dividend. Chief priorities in this review are the continuation of both the derogation for the dairy and livestock sector and the transitional arrangements for pig and poultry farmers. Even though fewer than 5% of farmers in Ireland avail of the nitrates derogation, they represent a cohort of progressive farmers who will underpin the development of the sector in the coming years, and are making farm management decisions today on the legitimate expectation that Ireland’s derogation will continue. It is worth noting that these derogation farmers endure increased compliance obligations, administrative burdens and face a greater likelihood of being inspected.

The call by the IFA for the continuation of the transitional arrangements for pig and poultry farmers is mainly because of the failure to develop a coherent bio-energy and, in particular, anaerobic digestion policy, with the necessary supports. The options are limited here. To avoid imposing thousands of euros of haulage costs on pig and poultry farmers, the transitional arrangements must be extended, at least until the long awaited renewable heat incentive is introduced.

Fertile soils are the bedrock of grass and crop growth. However, low farm incomes and heavy regulatory activities have contributed to a reduction in fertiliser use in recent years. This has led to a decline in soil fertility levels, with a small proportion of soil samples - 10% for grassland and 12% for tillage - showing good overall soil fertility. Currently, two thirds of soils nationally have a sub-optimal pH status, indicating a requirement for lime on most farms. Liming creates the optimum pH environment by neutralising acidity in soils, and making nutrients available to grow crops and reduce the risk of run-off. A lime investment programme must be introduced as part of this review to support the rebuilding of fertile soils. This must be supported by more open access to Teagasc's nutrient management planning tools, which should be available to all farmers at no cost initially. This will maximise adoption of best practice.

Regarding the inflexibility of the calendar farming regime when it comes to fertiliser spreading, this is once again in the front of our minds, with farm families, particularly in the west and north west, struggling to farm the land due to the exceptional weather this year again. I would ask that this issue, which continues to be raised at IFA county executives, be addressed to support the farmers, who want to do the right thing and not get penalised. This review is taking place at an important time in the development of Ireland’s agrifood sector.

Many of the measures proposed by the IFA in this review are focused on better resource management, which delivers on the double dividend of reducing costs while also protecting the environment by reducing greenhouse gas emissions and reduced risk to water quality. In addition, the farming community is well positioned to continue to play its part in Ireland’s recovery. However, vital support to deliver sustainable growth is required across all sections of Government. It is now the time to ensure that this review plays its part.

Pat Deering (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank Mr. Healy for his presentation. We will try to get through this section as quickly as we can, as we have all been here for quite a while at this stage. I will take questions from the members and then bring in whoever among the witnesses wishes to respond to them. The members offering are Deputies Cahill and Martin Kenny and Senators Lombard and Paul Daly and I will call them in that order.

Jackie Cahill (Tipperary, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I thank Mr. Healy for his presentation. Farmers have the most to lose in the context of this review. Substantial investment was made on infrastructure on farmyards under the farm waste management scheme and significant improvements were made in water quality, but it disappointing that the last water quality report published showed that water quality has disimproved in a number of areas. In my county 66 villages have no water treatment plant. In an agricultural county like ours, how can we get our water quality right if everyone is not going to make the necessary investment. Farmers have made a huge investment. County councils need to get involved. The village of Golden in Tipperary, located on the banks of the River Suir, which is quite sizeable, has no water treatment plant. That is inconceivable. If water quality disimproves, we could easily lose our derogation. If we lose our derogation, all the plans we have under Food Wise and every other plan and projection will go out the window. It is critical that we get it right.

Mr. Healy referred to the calendar farming regime for the spreading of slurry. That is something that hits farmers hard. It is very important for us to maintain and improve our water quality as we move forward. Our green image is very important for the sale of our product. Leaving that aside, we simply have to get this right. The ordinary consumer will see the report and farmers were put high up on the list as being guilty with respect to the last report. That was not justified as we have made a huge investment. If other sectors had to invest proportionately what farmers have invested, the story we would be discussing and the review would be much less onerous on us.

We have a job of work to do here and we need to do it collectively. All sections of society need to pull their weight and ensure that they contribute and put their money and capital investment in to ensure we can continue to progress and our water. We had a very good period of water quality improvement that, unfortunately, slipped back. The wet weather has probably had an impact on the agricultural side of things. Someone could say they wanted two dry days after spreading fertiliser but how could they get them? There was probably some run off there which has contributed to the problem but that will always be an issue. County councils have a job of work to do and it must be done immediately. That investment must be put in place. The fact that they are such contributors to that deterioration in water quality is not on. We do not want this review to be taken for granted. We have to make sure that Ireland's case is put forward well but for that, we need a battle plan to show what investment we will have to improve water quality from other than the agricultural sector.

Martin Kenny (Sligo-Leitrim, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

As Deputy Cahill said, there was a lot of investment for on-farm storage. Land that is taken that is slurry is a bit part of the problem. What do we do about that? Could the witnesses elaborate on anaerobic digestion, the scale of it and what supports would be required to have that as part of the option? Where do they feel that can go and what can be done about that? I often think the world is a funny place because we have all these international bodies, the EU and everyone else putting pressure on every country in Europe to train and up its game regarding protecting the environment and environmental standards but, at the same time, similar bodies like the European Central Bank inflicted all sorts of austerity on countries like Ireland which meant that the we did not have the money to invest in county councils to be able to protect the environment. It is a circle and someone somewhere needs to step back, look at the big picture and realise that it is not all down to the farmer to solve these problems. Other places have to pull their weight as well.

Mr. Healy mentioned the use of lime on land and what needs to be done in respect of that and what kind of programme is allowed. Could he comment further on that?

Mr. Joe Healy:

I mentioned the €2 billion that farmers have invested with the support of Government so farmers have invested a huge amount of money. An incredible investment was made at the end of 2008 - the rush to get everything done before 31 December of that year. People were going around with nothing to do on 1 and 2 January and for most of 2009. I know there is calendar farming, which we talk about, but many farmers came to me at the National Ploughing Championships to say that because of the cut off in the middle of September, they were actually spreading fertiliser in the rain. Two days' later, the Monday was a lovely fine day but they could not get out on that Monday because they had to have had it spread. Fair enough, there must be dates and rules that are adhered to but it would have made far more sense to go out with the fertiliser spreader on 17 September than on 15 September because the days were completely different. Deputy Cahill is right. We cannot take this review for granted. It is too serious. We will work collectively to get a successful outcome to this.

Mr. Thomas Cooney:

I welcome Deputy Cahill's comments on the importance of the derogation and that all sectors need to contribute. We are very acutely aware of the importance and have been very busy all year with lobbying and meetings. We visited the European Commission in Brussels earlier this year to explain the huge investment that farmers have made and all the initiatives we have such as the rural development plan. Over 50% of the measures in GLAS are aimed at improving water quality. We told it about the IFA Smart Farming initiative which also contributes to improving water quality. GLAS needs to be re-opened because a number of farmers are not in it. There are only 50,000 farmers in GLAS. There is an underspend in the rural development plan so why not re-open GLAS as a measure to encourage more farmers into it? Anyone who is interested must fence off water courses. There are other measures in it that contribute to it.

The Smart Farming initiative has identified lime. There is a soil pH deficit in nearly every farm we have gone to. Members will see in our submission that we called for some kind of grant or subsidy to encourage people. That is something we are still going to continue to push for. We have not made much progress on it but is something that would greatly improve our water quality.

Deputy Kenny asked about the scale of anaerobic digestion. We are waiting for a refit tariff or the renewable heat proposals to go to Cabinet. We will be calling for the pig and poultry sector to be addressed. It would be one of the answers to the pig and poultry sector. We would also encourage the option for a community buy-in to it so that locals can invest in it if they want. It would be a win-win situation for everybody. It would help us to meet our renewables heat targets plus electricity and improve our water quality all in one.

The issue of local authorities, wastewater treatment plants and direct discharges needs to be addressed. Every sector needs to step to it.

Pat Deering (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context | Oireachtas source

There is no doubt about any sector but in respect of the sector we are dealing with here, the investment that has been made over many years is probably a good news story. In respect of the engagement the IFA has had over the past year, what kind of reaction has it got? What reaction has it received regarding telling the story about the money we have invested here in Ireland and the structures and different schemes that are in place to deal with these matters? Are we getting a positive response in Europe?

Mr. Joe Healy:

We are getting a positive response but what farmers are doing needs to be said because it comes as a surprise to most people when we say-----

Pat Deering (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context | Oireachtas source

It is a good news story.

Mr. Joe Healy:

It is. Our nitrogen use is back where it was in 2004, our use of P and K has dropped by an average of 50%, one of them is 48% while the other is 52%, in the past decade and our emissions of greenhouse gases are down while our agrifood exports have grown by 50% in the past nine years.

Mr. Thomas Cooney:

There were 1 million fewer cattle than we had in 1996 in respect of exports. We are getting more efficient and better at what we are doing through all the initiatives I mentioned such as the ones in the rural development plan and the beef genomics scheme. They are improving our efficiency and are working but those schemes need to be built on and made workable for farmers and the money paid on time.

Mr. Thomas Ryan:

There is a degree of frustration among the farming community which is looking for solutions. Deputy Kenny referred to anaerobic digestion. The long-awaited announcement from Government around the renewable heat incentive is a cause of considerable concern because while AD is a commonplace technology across many European member states, we have less than five in Ireland and all are pilot projects.

The value of AD is that it allows the slurry to generate electricity and also for a separation technology to be applied as part of the process whereby farmers are then able to transport the solid fraction and reduce their haulage costs considerably. The introduction of the RHI would go a long way to making AD viable. Indeed, it is dependent on it. In our recent submission to the Minister, Deputy Denis Naughten, we again called for the introduction of an RHI scheme.

Regarding liming, two thirds of our grassland is at optimum pH. That means a third of our grasslands are not producing as much grass as they can and it is four times cheaper to feed livestock on grass than on concentrates. Only 45% of tillage soil is at optimum pH. We are missing the opportunity to support growth and development in the sector. That is why the submission calls for support for liming, which will effectively address the underlying soil-fertility issues, support production and drive on a lower-cost-base model. At a time of challenging farm incomes, such supports are very important, not just to address the environment but also to address farm incomes.

Pat Deering (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I call Senators Lombard and Paul Daly, after which we will come back to the witnesses.

Tim Lombard (Fine Gael)
Link to this: Individually | In context | Oireachtas source

This is a very important issue. The nitrates derogation is probably one of the cornerstones of our industry and how it develops. When we started in 2007, we had about 4,000 derogations and we are now up to nearly 7,000, 2,500 of which are in my county of Cork. It is a major issue for the industry. It is very important that we get a positive result on this in the coming months.

I wish to speak about the lack of local authority sewage treatment plants. I often tell a story of something that happened in Cork. We have one of the most beautiful harbours in Cork, but up to eight months ago we were pumping 1 billion gallons of raw sewage into the harbour. Such issues will cause problems with water quality. There have been developments. I welcome the treatment plant that was opened eight months ago.

The agricultural community has invested dramatically since 2008. Farmyards and stores have been built, which are a credit to those in that community. There has been major investment on the agricultural side. We need to ensure that this derogation happens. There has been huge investment in the dairy industry in my part of the world. That is built on the back of derogations. Without those derogations, we could go down the same line of what is happening in other European countries where 20% of herds were lost when they lost their derogations. This is a very important issue and we will hopefully get a resolution in respect of it in the coming months. It is a key issue that needs to be resolved.

Paul Daly (Fianna Fail)
Link to this: Individually | In context | Oireachtas source

There is not much more I can say. It is clear that we are all on the one side on this issue. It is not a case of us and them. However, there is an element of us and them. Far be it from me to lecture the IFA on public relations; one could learn much more from the IFA in that regard. If a drowsy fish is found in a river in the morning, farmers are blamed. As the Chairman said, that is where many of the good news stories are being lost. We have discussed the non-existent wastewater treatment plants in villages, issues with industry, etc. However, despite all the money that has been spent and all the good work that has been done and the fact that this is a good news story, it will still all be reversed in the blink of an eye when there is a slight problem with a river.

Those of us here and those involved in the farming sector know of all the investment that was made and the levels of water quality that were achieved prior to a small dip. The people outside who will be lobbying to hammer the farmer when this review is going on need to be made of aware of the positive developments in the past.

Mr. Joe Healy:

The two priorities are to retain the derogation for the dairy and livestock sectors and the transitional arrangements for pigs and poultry.

Mr. Thomas Cooney:

The questions were more or less answered. We are calling for a more collaborative approach in respect of the enforcement of penalties. All the agencies, including the EPA fisheries agency, need to work together. There needs to be more of an advisory approach used. That system has been used in other countries, including in Scotland. Rather than enforcing the penalties immediately, the advisory system should be put in place pointing out the minor remedial works required. The infringements on farms are generally minor. Farmers need money to address those issues. Some of them are covered in the TAMS. That collaborative approach is needed. I believe €2 million has been spent on penalties. That money would be better spent investing it on the farms than being returned to the EU in fines. That is also covered in our submission. It would deliver more for water quality than the current system being used if there was better communication between all the agencies, including the farmer as well.

Pat Deering (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context | Oireachtas source

This is a very important issue for the whole sector. Food Wise 2025 sets very ambitious targets in respect of increasing our exports by 50%. If we do not achieve what we want to achieve in this area, we will be in serious trouble. As Senator Paul Daly said, we are all on the same page on this issue. We will do what we can from our side of the fence to ensure that we get a positive outcome and I am sure the IFA will do that also. As the Senator said, if a drowsy fish is found somewhere, it is not always the fault of the agricultural sector. Much money has been spent trying to upgrade the infrastructure in farms to a very high level. That story needs to be told and I hope we can get a positive outcome.

That concludes our business for today. I thank the witnesses for their attendance. I apologise for the meeting dragging on. I also apologise for my absence during the main part of the meeting.