Michael Creed (Cork North West, Fine Gael) | Oireachtas source

I thank Deputy McConalogue for raising this issue and for giving me an opportunity to address the House in respect of it. I fully acknowledge and accept that ongoing difficulties are being experienced by the farming community, not least our tillage farmers. This sector is very important in the agricultural economy but it has been a challenging year in terms of both market returns and weather. I am in the middle of chairing the tillage stakeholders forum and have stepped out to take this important debate. I decided to convene the forum today because I thought it would be an apt date on which obtain a sense of the bigger picture regarding what the harvest has been like. According to the information available, matters have been difficult, particularly on the western seaboard. I have met representatives of the IFA in Donegal, Sligo and Leitrim. I know from my own experience in west Cork that it has been a particular problem along the western seaboard. In the context of convening the forum, I also felt it was important not to go in with a prescription that might not fit the ailment that was articulated. I wanted to involve all the stakeholders so it is not just in the context of the forum and it is not just the farming organisations. It takes in the gamut of people who have a vested interest in the viability and prosperity of the sector, from the State agencies and farming organisations to the feed industry, the distillers and the brewers. In the context, today is in many respects a listening exercise and I appreciate the points of view that have been articulated at that forum.

The tillage sector provides valuable raw material for the feed industry, straw for the livestock and mushroom compost industries and, importantly, material for the rapidly developing brewing and distilling industries. I am most conscious of the challenges posed by the current weather and price-related difficulties for growers and that significant changes will take place in the international trading environment in the coming months and year.

In the light of these challenges, I directed my officials to priorities the processing of all payments this year, including the basic payment scheme, BPS, the areas of natural constraint scheme, GLAS and AEOS, which are in total worth over €1.5 billion annually to the agriculture industry. In respect of the BPS and the greening payment, I am pleased to confirm that advance payment is scheduled for 17 October next, the earliest possible date by which payments can commence under the governing EU regulations. The necessary preparations are being made to maximise the number of payments on that date. In response to the difficulties being encountered on farms, this payment will be at 70%, which will significantly support farmers with cash flow problems. The second instalment of payments will commence on 1 December next. I am also pleased to note that the processing of the areas of natural constraint payment scheme is on schedule and payments have already commenced during the third week in September. It is expected that approximately 96,500 people will fulfil the scheme eligibility requirements. I am happy to confirm that, to date, in excess of 77,500 applicants have been paid a total of €167 million. Payments are continuing on a twice-weekly basis to ensure prompt payments to applicants as and when they fulfil the scheme stocking requirements.

I also confirmed at this afternoon's meeting the Government's commitment to the sector, both at farm and processing level, which is fully reflected in the Food Wise 2025 blueprint for the industry. In particular, I highlighted the opportunities to increase the focus on adding value to what is a quality product. I also indicated that the provision of low-cost flexible finance is a priority for us under the programme for Government. To this end, I have been engaged in intensive consultations with the Government Departments, the EU Commission and the Strategic Banking Corporation of Ireland with a view to developing a product that is better than anything in the marketplace. I hope to be in a position to make an announcement on this shortly. I am determined to ensure that any new loan product will be available to tillage farmers on similar terms and conditions as those for livestock farmers under de minimisstate-aid rules. I stressed at the meeting, and I do so again in this House, that in this changing landscape, we need to take a fresh look at our tillage industry to ensure that it is best positioned to withstand possible future threats and to avail of the new opportunities which may present themselves.

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