Tom Fleming (Kerry South, Independent) | Oireachtas source

Agriculture and the food industry make up the leading indigenous sector of the Irish economy and they play a key role in Ireland's export-led economic recovery with positive growth in the sector over the past two to three years and with output growth in primary agricultural and agrifood exports far outpacing the rest of the economy. The economic and social benefits of this growth are widely dispersed throughout the country, with more than 300,000 jobs being supported by the agricultural and food industries. This accounts for up to 15% of the total employment in the country, with 115,000 directly employed in farming. Up to €8 billion per year is spent by farmers and their families in their local communities and catchment areas.

Our land is excellent and it is not over-stocked and it is the best grass-growing land in Europe. The grass provides quality fodder which is highly sustainable. This year's weather has been disastrous for the viability of agricultural holdings with the impact being felt throughout the winter and into next year. However, it is the exception rather than the rule in weather terms. The retention of the agricultural schemes and subsidies will mean that the financial effects of this year's weather should be minimised over the short to medium term.

I thank the Minister for his recent announcement of the AEOS scheme which is very timely in view of the high dependency of a large number of farmers who are small land-holders in the west of Ireland in particular. It means these farmers can derive a living off their land and ensure they can continue to have a viable family farm. The Minister estimates that up to 6,000 farmers will benefit and it is a lifeline for many of them. I welcome the €20 million made available which amounts to €4,000 per recipient.

The most crucial issue facing Irish agriculture is CAP reform. I believe we have an advantage in our favour due to the fact that we will have the EU Presidency from January until the middle of 2013. The analysis by the Department of Agriculture, Food and the Marine, shows that the current historic single farm payment system in use in Ireland is the best fit to target money towards active farmers. The EU Commission proposals would see payments per hectare levelled out from 2014 to 2020. This would mean that land which is currently farmed at a low level would draw the same payments as land that is actively farmed. Farmers with entitlement values above the national average of €270 approximately, per hectare, would drop down and some would lose up to 50% of their payments. I am sure the Minister will do his best. I refer also to the retention of the hedges within the AEOS as these were in danger of being left out last week. I thank the Minister of State, Deputy McEntee and the Minister, for their intervention.

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