Michael Moynihan (Cork North West, Fianna Fail) | Oireachtas source

I agree but there needs to be more research undertaken. These things do not happen overnight. I know we are in a global market and what is happening in the United States or in China has an influence. Six weeks ago I thought it was time to ensure a floor price for milk because many farmers would have borrowed money.

Young farmers have been taking the opportunity to produce more milk, as have others who have been farming for 20 years and were not able to do so before. It is always the Holy Grail to be able to produce as much milk as one possibly can. Now, however, some of these farmers are saying they are slowing down production. That issue will need to be examined in the context of prices.

As we go forward into the post-quota landscape, we must focus on our emerging markets, the markets we are looking to under Food Harvest 2020, to ensure we have the best possible security in those markets. We are producing one of the best products in the world on the backs of farmers who have taken on board an enormous volume of regulation in the past two decades. Looking back to 1996, farmers in my part of the country were drying off cows in August and September because of non-availability and many small family farms did not have any income coming in for months at a time. The dairy industry and food industry in general all depend on the farm gate. Farmers, as I said, have accepted huge regulation and have, by and large, almost to a fraction of a percentage, ponied up to those regulations and done the groundwork and investment at farm gate level in terms of upgrading their facilities. Many have spent huge amounts of money, whether on slurry storage facilities, dairy equipment or other upgrade works. They have put massive money into getting their systems right. That is why we have one of the best products in the world and it should be acknowledged by everybody who is buying milk at the farm gate. There has been some debate in regard to the co-operative movements that were set up to protect farmers, some of which are looking at huge profits. There is an issue there but it is for another day. Farmers have adhered to a range of regulations at enormous expense to ensure they have the best possible product and the companies buying it, whether PLCs or co-operative movements, must give fair and accurate prices at the farm gate. There are people making enormous profits on the backs of farmers and that is an issue we must examine.

The Minister mentioned the interest rates that are being charged on farm loans. Farmers come to me constantly saying they are being charged 5%, 6% and 7% rates. These are penal rates. At this stage, it can no longer be about talking to the banks; they must be told these practices are not acceptable. This is a growth industry, an industry that was put on a sound footing over generations. Farmers have heeded the advice they were given and made the necessary investments to improve their product. It is a credit to every farmer out there, whether they are milking 20 cows, 200 cows or more. They have delivered a product of which we can be justifiably proud. We must ensure no farmer is penalised, regardless of how many cows he or she is milking. Everybody must be treated the very same and given the same price per litre of milk in whichever sector they are in.

The Government must do more to ensure banks treat farmers fairly, which is not currently happening. There are many farmers seeking to expand and who, when faced with volatility, are being hauled in by their bank managers or bank liaison people. I spoke recently to a very successful dairy farmer whose family have given their lives to building up a massive business. When they sought to transfer some intergenerational loans because the farm was being taken over, they experienced great difficulties. The banks are not doing what it says on the tin in terms of their function. We in this House, in government and in opposition, should be facing them down and saying this is not acceptable.

There are many farmers who have massive opportunities and are prepared to work hard to realise them. At this time of year, from January through to April, they work 24 hours a day, seven days a week to get the work done. Many farmers are feeling the pressure and dealing with stress-related issues. We must ensure every advice and help is available to farmers in all categories. Representatives of farming communities are telling us they are very concerned about people's welfare. We should be conscious of that. We must be stricter on the banks, because what they are doing is wrong, and we must challenge them to tackle the problem. We need to ensure dairy farmers, who are working extremely hard, are getting a fair price, whether from a PLC or a co-operative entity, and are given due recognition for the mighty product they have developed over the generations. Many farmers are looking forward to 1 April but they have a superlevy bill hanging over them. We should challenge the system in that regard. Those levies should not be paid in the first instance.

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