Jackie Cahill (Tipperary, Fianna Fail) | Oireachtas source

All those weapons are still being used by the processors to pay less to farmers for cattle. We need at least €200 per cow in the beef genomic scheme to keep our beef suckler herd in place. This matter needs to be examined under the mid-term review.

The Minister referred to the Mercosur deal on the European agriculture sector and the potential damage that could be done by 78,000 tonnes of extra beef from Latin America coming into the EU. The thought of it is enough to send a shiver up one’s spine. We are still producing under the costs of production. If this quantity of South American beef, the equivalent of 2 million extra cattle, is allowed into the EU, our beef industry will be in terminal decline. We have quality assurance and the best traceability. We have put the significant investment into ensuring we meet all the EU standards which the consumer rightly demands. If we allow beef of an unequal standard to ours to come into the EU, it will make a mockery of this significant investment. It will finish the beef industry once and for all. Up to 90% of our beef goes to the EU market. If this Mercosur deal goes ahead, we can forget about our beef industry.

Both the grain and pig sectors are generating product at below cost levels. Reports state that 15,000 ha will be left fallow this spring. They are probably the only grain producers who will not lose money on that ground. The pig industry is in terminal decline because the processors have a vice-like grip on it.

If feed prices go down by €10 per tonne, one can be sure as night follows day that pig prices will drop the week after. The retailers and processors are squeezing the pig producers in a vice-like grip and both must be tackled. The pig producers must get a meaningful return in respect of what is paid by consumers. If this does not happen quickly, pig producers will be like the sugar beet industry. The pig industry will be no more. Our sheep industry is worth €220 million to the economy and involves 34,000 farmers. Again, the mid-term review needs to deliver a €20 premium per ewe to sheep farmers.

In respect of the problems caused by volatility, the Minister said that income averaging has been extended. However, the reality is that when farmers go to pay their tax bill in 2016, they will have no cash flow to do so. They will have to borrow money to pay their tax bill, which is not a viable option going forward. The Irish Creamery Milk Suppliers Association, ICMSA, has proposed a deposit scheme whereby farmers can pay tax on money in a good year and put money into a deposit scheme to be taxed at the corporation tax rate so the money will be there to pay tax in a year like 2016. This proposal must be examined by the Minister for Finance and I hope the Minister for Agriculture, Food and the Marine will push it with the Minister for Finance.

The Minister for Agriculture, Food and the Marine referred to the fertiliser tariff. European farmers spend €1 billion on fertiliser while we spend €500 million in this country. The Minister spoke about a temporary scrapping of the tariff. It is essential that it is scrapped immediately to bring down the costs of production in Europe.

We have problems with direct payments. The Minister spoke about bringing forward the date of direct payments. This would be welcome but the same amount of money will be paid to farmers. The Department's performance in respect of direct payments last year was poor. Farmers who established partnerships, formed companies or received the Scottish derogation faced major delays in accessing those payments. It is essential that those payments are made on time this year when income will be at such a low ebb.

It has been said that the national reserve and young farmers scheme will not operate in 2016. It is essential that we have a national reserve but this cannot be funded by a linear cut to other farmers' payments, which have been cut enough. I understand that there is a proposal to cut another 2% to fund the national reserve. This cannot happen and the EU has to find the resources to fund the national reserve and young farmers scheme. The farmers' charter must be reactivated and payment targets must be met to give it some bite.

The operation of the first targeted agricultural modernisation scheme, TAMS I, has been very poor. Farmers who were waiting for approval in the back end of 2015 in respect of essential work in farmyards and milking parlours got temporary approvals. They are now waiting for payment with no sign of it coming in the next couple of months. This is inexcusable given that farmers are strapped for cash and a charter must be put in place with strict guidelines to ensure that when work on a farmyard is finished, payment comes without delay.

The food sector is worth €24 billion to our economy and constitutes 10% of Ireland's exports and 7.7% of national employment. Its value to the rural economy and the economy as a whole cannot be overestimated. The Minister spoke about the potential danger of a British exit from the EU but unless something is done about farm gate prices, the very significant potential of our industry will be lost. Farmers cannot survive on the prices they are getting in the dairy, beef, grain, sheep and pig meat sectors. Action must be taken and the onus is on the Minister, or whoever occupies his seat in the next week or ten days, to ensure measures are put in place by the Government or the Commission to put extra money in farmers' pockets and increase farm gate prices.

Intervention is the only way to do it on the dairy side and live exports are the only way to do it on the beef side. If we are to realise the potential and the targets of Harvest 2020 and Food Wise 2025, the primary producer has to get a decent return. The onus will be on the Minister of the day - whether it is the present Minister, Deputy Simon Coveney, or someone else in the next week or ten days - to ensure it is delivered.

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