Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

This is the first agriculture budget that does not cut existing schemes but introduces new schemes. I very much welcome the announcement that there will be a major investment in the beef industry. I have been lobbying the Minister for some time now for the need to introduce a suckler cow support scheme. As I have said on many occasions, our suckler herd is the maternity ward of our beef industry and it is vital that this sector is given the necessary support because it was becoming unviable to keep suckler cows and cows were not being put in calf. I am pleased with this new scheme, which will include €23 million for a new beef genomics scheme, €10 million for the continuation of the beef data programme, €5 million for the beef technology adoption programme and residual payments of €2 million for the suckler cow welfare scheme.

Under the new beef genomics scheme, the Irish Cattle Breeding Federation, ICBF, will genotype and carry out a genetic evaluation on 15% of the participating farmers' cows and stock bulls. This will greatly accelerate the collation of the national DNA database for the suckler herd and represents an additional investment of €23 million in the beef sector. ICBF estimates that increase in genetic gain alone could mean an additional €50 million in increased output and reduced costs per annum at farm level. Improving beef efficiency at farm level will help to increase the contribution of the beef sector to job creation and the wider economy. Together with the beef data programme, this will provide for payments of up to €60 per calf in the suckler herd.

When it comes to property it is always location, location, location, but when it comes to beef it is quality, quality, quality. I welcome the €15 million for targeted agricultural modernisation schemes, TAMS, which will give support to the dairy sector and assist investment in new equipment to make operations more efficient and productive especially in the run up to the abolition of milk quotas in 2015. I am pleased the sheep industry has also gained in this budget by increasing the grassland sheep scheme up to €15 million. That will support the expansion of sheep herds.

On VAT, the farmer's flat-rate addition is being increased from 4.8% to 5% which is another positive development as it will put €10 million back into farmers' pockets. While it is disappointing that there is no new agri-environment options scheme, AEOS, I ask the Minister to examine if any supports could be put in place for special areas of conservation in so far as they are very limited and restricted in what they can do on their holdings.

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