Johnny Brady (Meath West, Fianna Fail)

Like other speakers, I am conscious that we are conducting these proceedings with the backdrop of very severe weather conditions which are affecting many parts of the country, particularly the south and the west. I would like to convey my solidarity to the many farmers who have been badly affected by the flooding and I look forward to the €2 million in aid alleviating the disruption and unrest which many are experiencing.

I am acutely aware that this has been a very challenging year for the sector. A series of factors have combined to put severe pressure on incomes, most notably low commodity prices, difficulties with sterling and weakened domestic and international demand. The dairy sector in particular has had a tough year, which was acknowledged by the Minister for Agriculture, Fisheries and Food, Deputy Brendan Smith. He has had notable success at EU level in pursuing market support measures.

I remain optimistic about the future of farming and the agri-food sector, notwithstanding the serious difficulties being faced. The Minister already mentioned his commitment to developing an agri-vision 2020 strategy, which has the potential to be an exciting blueprint to take the sector forward well into the 21st century. No doubt major obstacles will have to be crossed in the negotiation of the CAP post-2013 but I see no reason to believe that the outcome will not be positive for Ireland. The abolition of milk quotas in 2015 holds great opportunities for our dairy farmers. However, it is vital that the industry focuses on dealing with the challenges as well as the opportunities that milk quota abolition will bring.

Of immediate and critical importance is the need to assist farmers as much as possible with cash flow difficulties. I am glad to state that the Minister has responded imaginatively and energetically to this need. His efforts have borne fruit to the early advance of the single farm payment, which began allocating from 16 October. A full 70% of the amount due has been paid to more than 120,000 farmers at a cost of €850 million. These payments, which were made a full six weeks earlier than was provided for under the rules of the scheme, have been an enormous relief to the sector.

Assuming all applicants are approved, farmers can look forward to a further €380 million from next week. The total value of payments will be €1.24 billion. Farmers will also warmly welcome the Minister's intention to seek Dáil approval for the Supplementary Estimate of €85 million. If approved, this money will allow payments due next year under the REPS and the farm waste management scheme to be paid before Christmas. These efforts are a direct response to the income challenges facing our farmers and clearly demonstrate that even in the most difficult of economic environments the commitment remains to assisting them in sustaining their livelihoods.

The dairy, beef, sheep and pig sectors have all experienced difficult times. Potato farmers, of whom there are a number in my county, have experienced particularly severe problems over the past three years. Some in my constituency have not been able to harvest a single acre of potatoes. Any assistance for them would be more than welcome.

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