Dáil debates

Wednesday, 25 November 2009

Farming and Agri-Food Sector: Statements

 

8:00 pm

Photo of Trevor SargentTrevor Sargent (Dublin North, Green Party)

I thank all those who contributed to this debate, although I share with Opposition Deputies the wish that we had more time. My colleague, Deputy Mary Alexandra White, is one of many Deputies from both sides of the House who is disappointed at being unable contribute.

We all agree this has been a difficult year for farming families and farm incomes. It is cold comfort to the many farmers who are facing immediate cashflow problems to say that the medium-term outlook is an improvement in market conditions for core products. For that reason, I welcome the Supplementary Estimate being brought by the Minister, the cash injection of €120 million into the primary farming sector through REPS and the bringing forward of payments due in 2010 under the farm waste management scheme. These will have beneficial effects on farmers' cashflows. The supplementary payments on foot of the ongoing flooding crisis will also be badly needed.

Reducing the costs associated with farming may not be a headline grabber but it is, nonetheless, a major element in maintaining the viability of farms. In January 2009, the minimum age for BSE testing of animals slaughtered for human consumption was increased to 48 months. In September, new arrangements were introduced to reduce the cost of brucellosis testing. A scheme worth €7 million was introduced for upland sheep producers. From 2010, a new support scheme for sheep producers will provide grant aids of €54 million over a three year period. These are significant developments which indicate the seriousness with which my Department is approaching the problems facing farmers.

These provisions should be seen in the context of the crisis in the country's finances. Despite the closure of the REP scheme because of shortages in funding and pressure from the European Commission, payments to farmers in 2009 and 2010 will be at their highest level ever. Almost 17,000 applications were received by the scheme's closing date of 15 May and it is safe to assume that the great majority will see their REPS III contracts end this year. These applications are now being processed with a view to making payments at the earliest opportunity. A further 1,600 applications arrived between 16 May and 9 July and these will be processed as applications for 2010. All REPS contracts will run their full course so that farmers will receive payments until 2014. It is hoped that the new measures which are on their way will help to maintain the agri-environmental objectives with which we have to comply. We will maximise payments to recognise the benefits of REPS.

I agree with the IFA that sterling's devaluation is a distortion of the Single Market. As Deputy Michael Creed noted, we have to get around the problem by focusing our attention on the eurozone. Bord Bia and Bord Iascaigh Mhara are directing considerable energy at marketing Irish products in this area.

Deputy Johnny Brady and I recognise the difficulties being experienced by the horticulture sector and potato growers in particular. This sector lacks the benefit of single farm payments and is more exposed to the market than other sectors. In many ways, the sector represents the canary in the coalmine and highlights the need for new thinking. We have included a number of new measures in the revised programme for Government, such as an ombudsman redress the imbalance between producers and retailers.

We must get to grips with the flooding crisis. The Minister of State, Deputy Killeen, is ensuring that forestry plays a role in reducing floods and addressing our climate change commitment of doubling planting rates. I have a particular interest in the organic sector because I see its merits not only in regard to its 11% annual market growth, but also in the impact on percolation of increasing organic matter in soil. Yesterday, I was told by an organic farmer in County Galway that the panning of land which does not contain good organic matter is contributing to run off. We need to take account of these issues because they demonstrate that organic farming helps in terms of percolation. We need to have more cognisance of the methodology that helps organic matter in the soil improve.

I ask Deputies and members of the public to read the new programme for Government to see the renewed commitment therein and the manner in which we are adapting to changing times. We will do everything possible to ensure the agricultural food sector, on which the country relies, grows.

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