Jimmy Deenihan (Kerry North, Fine Gael)

The disadvantaged area payment scheme is worth approximately €18.2 million to 7,343 farmers in County Kerry in 2009. However, a number of farmers are still awaiting payment as no cheques have been issued since 13 November. To many farmers this is the only income they will get before Christmas. This year has been disastrous for the farming community. According to CSO figures, the value of milk output fell by almost 35% or €567 million, due mainly to a decrease in prices. For example, the price of a litre of milk in Kerry was 40 cent in 2007, but it has now fallen to about 24 cent, which is still better than other counties. The cattle output value was also down by 10.7%. Coming on top of the income drop of 11% in 2008, this represents the worst income crisis for the sector since Ireland joined the EEC in 1973.

The collapse is due to poor commodity prices, Government cuts, the continuing weakness of sterling and the dreadful weather conditions experienced during the year. Government cuts in vital schemes totalling €130 million have impacted severely on farm incomes. Also, the Government carbon tax will further increase farm production costs by almost €17.5 million per year, which represents a further 1% cut in farm incomes.

The Minister has signalled that €25 million per annum would be found by cutting the disadvantaged area payment scheme by an estimated 11.5% from 2010. This is in addition to a cut of €34 million in the October 2008 budget. This was done by reducing the maximum area limit to 34 hectares or 84 acres. Farmers in County Kerry were particularly affected by this cut.

Due to the disastrous year for Kerry farmers and Irish farmers in general, it is vital that all outstanding payments be sent out before Christmas to help farmers to get over this expensive period.

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