Dáil debates

Wednesday, 4 May 2016

1:15 pm

Photo of Bobby AylwardBobby Aylward (Carlow-Kilkenny, Fianna Fail) | Oireachtas source

I am delighted to have the opportunity to address the House today to highlight the significant challenges facing Ireland’s farming families. While it is widely recognised that the agrifood sector is the largest indigenous industry in Ireland, employing more than 175,000 people, the majority of farming families are struggling to sustain their businesses and produce meaningful profits. I would go so far as to state that the agricultural sector is facing a stark and real crisis. According to Teagasc, farming families' incomes fell by 9% in 2015. As this is despite the fact that the value of food and drinks exports reached nearly €11 billion in 2015, something is seriously wrong. The profits are not finding their way back to farmers and instead are being consumed by the processors. Members cannot accept a situation in which farmers continue to be price takers as opposed to price makers.

As a beef farmer living in a farming community, I can tell Members at first hand that beef farmers are feeling severe pressure, with average beef prices hovering at around €4 per kilogram, which is leading them to just about break even. It has been forecast that beef prices are set to come under further pressure in the second half of 2016, as it is likely that 50,000 to 80,000 additional finished cattle will be available.

This is largely due to live exports having fallen by 25% in 2015. Therefore, the next Minister for Agriculture, Food and the Marine must prioritise the opening of new external markets to live exports as a matter of urgency. The focus of the mid-term CAP review should be used to make the beef data and genomics scheme a pillar of the future of the beef industry and to target increasing funding to the beef genomics scheme by moving towards €200 per head payments on the first 20 cows.

We must also seek to legislate for a food ombudsman by amending consumer law. Such an office is needed to ensure the dominant position of a small number of processors on the price of cattle is not abused.

To be frank, the Department of Agriculture, Food and the Marine itself has become a huge problem within the agriculture sector. Many farmers are completely disillusioned with the bureaucracy and red tape involved in even the simplest of issues such as basic payments. My constituency office is flooded with phone calls and visits from concerned farmers who have been waiting in excess of four, five and even six months for basic payments which are crucial to the sustainability of their business.

The Department received more than 7,000 national reserve and 8,500 young farmer scheme applications last year, but seven months on, hundreds of farmers are still waiting for their payments. This is an example of how the Department is failing in its role of supporting farmers in this country. As a result, farmers are experiencing severe cashflow problems and are finding it incredibly difficult to secure credit from banks to invest and grow their business.

The basic payment scheme and agri-environmental schemes like GLAS must be facilitated in an Irish setting with minimum bureaucracy and red tape. GLAS is not delivering for farmers as the rural environment protection scheme, REPS, did. The Minister originally promised an average GLAS payment of €5,000 but this will not be met.

The new beef data and genomics programme has been described by farmers as unworkable. It is the responsibility of the Department to ensure the scheme is practical in order that farmers do not incur additional costs through penalisation or reduction of payments.

Of course, inspections are important in ensuring high standards are met on farms and the highest quality produce is returned. However, too many farmers are suffering huge penalties for minor infractions. I have continually called for a yellow card type of system to be implemented in order that a level of discretion can be afforded to farmers in cases of genuine error or extenuating circumstances.

I call on the next Government to dedicate one Minister for agriculture alone, not like in the past when one Minister held two portfolios. Farming is the most important business sector in Ireland, so we need a dedicated Minister solely for that portfolio. Therefore, the new Government should ensure one Minister will deal with agriculture.

Comments

No comments

Log in or join to post a public comment.