James Bannon (Longford-Westmeath, Fine Gael) | Oireachtas source

Given the proper support, the agriculture sector has the capacity to lead economic recovery. The previous Government, under the watch of Deputy Ó Cuív, slashed every available farm gate scheme, including REPS, the disadvantaged area scheme, young farmers installation aid, the early retirement scheme and forestry supports. I could go on and on. The effects of the cuts were devastating to the industry and rural communities. Under Fianna Fáil, between 1997 and 2010, farm incomes fell by more than 17%. Since this Government took over, we have stabilised and increased prices and farmers' incomes. The Government will invest more than €12 billion in agriculture between 2014 and 2020, comprising €8.5 billion in direct payment to farmers and more than €4 billion towards rural development.

Agriculture is at the heart of the working life of people in Longford-Westmeath and throughout the country. While farming has had to deal with more than its fair share of setbacks in recent years, farmers in this constituency have displayed great resilience in dealing with, and bouncing back from, the effects of the recession. A thriving farming sector and supports for the industry remain a priority for me. While our food prices are the second highest in Europe, the farmer who produces the food is being denied an income. Farmers need to reinvest and develop.

Cattle prices have fallen by nearly 18% since this time last year and in real terms, this means that while in June 2013, farmers were selling steers at a base price of €4.60 per kilogram, today they struggle to sell them at a base price of €3.70, if they can get them killed. Farmers have major problems getting their cattle killed in factories throughout the country. This is not just a case of selling below cost. Factories are refusing to buy stock or delaying purchase for one or two weeks. They are controlling the entire trade by dragging down prices for animals, which is crippling farmers. The beef barons who control the trade are importing cattle from Poland. I ask the Minister to clarify this very serious matter.

Live exports are vital for price competition and we must seriously consider the removal of the roadblocks impeding the live trade to Northern Ireland. The increase in cattle killed to more than 30,000 head per week in 2014 and the resulting price and income difficulties can be directly related to the reduction in live exports in 2012, highlighting the importance of a strong live trade for the sector. The beef barons must be controlled and forced to pay farmers a decent price for their cattle. If the situation is not tackled, it will leave the CAP deal useless as farmers will abandon farming. We must act fast to stabilise cattle prices and restore confidence to avert the coming crisis in the autumn.

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