Peter Fitzpatrick (Louth, Fine Gael) | Oireachtas source

I welcome the opportunity to speak today about agriculture. The agricultural sector is the most important sector in Ireland. It has a combined turnover of more than €26 billion and represents almost 8% of GDP. It supports 160,000 jobs, representing 8% of the total workforce. It accounts for almost 11% of all our exports and in 2015 exported nearly €11 billion worth of product.

The Food Wise 2025 strategy aims to increase the value of exports by 85% to €19 billion; increase value added by 70% to €13 billion; increase the value of primary production by 65% to almost €10 billion; and support the creation of a further 23,000 jobs in the agrifood sector. At present, two main direct payments schemes are delivered under CAP - the ANC scheme and the BPS. The ANC scheme, which replaced the disadvantaged areas scheme, was launched in May 2015 and is co-funded by the European Agricultural Fund for Rural Development. Payments range from €82 to €250 per hectare. To date, €203 million has been paid to more than 95,000 farmers. Ireland was one of the first countries in the EU to pay the BPS and €1.1 billion has already been paid to more than 125,000 farmers, which covered more than 99% of all applicants.

GLAS was launched in 2015 and effectively replaced the REP scheme. It had an overall target of attracting 50,000 farmers. To date, over 38,000 farmers have been approved for the scheme.

I note a third round of applications will open later this year and I urge any applicant who was unsuccessful in the first attempt to reapply after consulting an adviser.

Since milk quotas were abolished, the dairy industry has experienced much turmoil. Despite this, the long-term outlook is positive, and with new markets emerging, I hope it will not be too long before the dairy sector returns to a more settled state. In light of the challenges faced, a number of measures were introduced to assist farmers. For example, a fund of €27 million was allocated to dairy and pig farmers to help them through this difficult period and a wide range of packages were agreed at European Council level, including the doubling of the intervention ceiling for skimmed milk powder and butter. It should be pointed out that the beef sector is also being strongly supported across a range of areas. For example, €300 million was allocated to the beef genomics and data scheme to improve the quality of the national herd and increase profitability for farmers. To date, more than 25,500 farmers are in the scheme. A new framework for producer organisations will allow farmers have more negotiating power in the market. Pigmeat prices have also come under pressure over the past year and there is no doubt this is proving challenging for producers. This sector is very important and supports more than 7,000 jobs, with exports in excess of €570 million in 2015.

I note the Minister, Deputy Coveney, has been very active in recent times, and at the March meeting of EU agriculture Ministers he proposed measures for the pigmeat industry, including the reopening of the private storage aid scheme. Despite all this, it is important to recognise that the agri sector faces a very difficult time. I know from speaking to farmers in the Louth area that

farming incomes are still too low. Input costs are rising but milk, beef and grain prices are not and in some cases are actually decreasing. This cannot continue and we must support the agri sector. Since the abolition of the milk quota, the dairy sector has faced many difficulties. The price of milk for the producer has dropped but the end user does not see any reduction. The abolition of the milk quota must be looked at again and additional supports for the dairy sector must also be considered. In Louth there are eight farmers who cannot access the young farmers entitlement scheme despite fulfilling the criteria. I am told that the funds are not available and I ask the Minister to examine these cases immediately.

I know from my dealings with the farming community that some farmers borrowed heavily to invest in their farms at the time when money was easily available. In some cases they are being put under severe pressure to repay these loans at terms that are simply not sustainable. Again I will be calling for additional supports and help for farmers in such a position to renegotiate with their respective banks and restructure their loans in order that they can continue to farm their land. Another concern in the farming community is the ever-increasing age of farmers. There are not enough young farmers coming through and I know my colleague, the Minister, Deputy Coveney, has done great work in this area. I urge him to continue this.

The agri sector in Ireland is a national treasure. We are known worldwide for the quality of our produce and our farming methods are the envy of the world. The Government must continue to support the farming sector, not only in Louth but countrywide, to ensure the long-term viability of our farming community.

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