Joe McHugh (Donegal North East, Fine Gael) | Oireachtas source

I welcome the Minister of State to the House. I have been in contact with numerous farmers in recent weeks regarding the farm assist scheme, which is becoming quite a problem for many farmers. The measures in the last budget relating to the farm assist scheme, which is effectively and technically farmers' dole, have resulted in quite a substantial cut to the earning capacity of many smaller farmers. I know of one case where the payment has been reduced from €280 per week to €80 per week, which is a completely unsustainable cut, especially in the context of the unviable nature of many smaller holdings.

The farming industry in general has become a victim of its own success in public discourse. The general assumption is that farming is going well, and indeed it is in some respects. The price of cattle has increased quite substantially in recent years, but the reality for many farmers, as the Minister of State will appreciate, is that costs have risen greatly. That part of the story has not been factored into the public discourse in terms of the viability of many small farm holdings. The cost of fertiliser, meal and fodder has increased dramatically, placing a massive burden on smaller farm holdings and farmers. Farmers are having a very serious conversation among themselves about quitting farming because it is actually costing them money to stay in farming. While that is happening, we also have the situation where the farm assist scheme is being cut back, as in the case of the drop from €280 to €80 per week I just mentioned. That particular farmer has two young children and a partner who is not working and is in a very difficult financial situation.

In the overall context of the farming model in Ireland, which has been the subject of much discussion in the context of the ongoing Common Agricultural Policy, CAP, negotiations, attempts are being made to define productive farming and non-productive farming. The question has arisen as to whether productive farms are small or larger, but the whole thing is interrelated. Agriculture in Ireland is connected together, whereby there are multiple small holdings supporting small suckler herds from Donegal to Kerry. These west of Ireland farms are very small but they feed into the bigger model. Smaller farmers are producing small numbers of cattle, which are then moved on to the bigger farms to be finished off.

My main point is that the cuts to farm assist payments to small farmers must be reviewed in light of the recent fodder crisis, escalating costs and the severe difficulties being faced by many farmers. If multiple small farmers decide that small farm holdings are not viable anymore, they are faced with the stark choice of going on the dole and receiving €200 per week or staying on farm assist and losing money by staying in farming. We are at a dangerous juncture for farming in this country and face the prospect of numerous small farmers along the west coast deciding to get out of farming. That will damage our industry at a national level.

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