Andrew Doyle (Wicklow, Fine Gael) | Oireachtas source

I move amendment No. 1:

To delete all words after “Dáil Éireann” and substitute the following:

“notes:

— the absolute necessity to support tillage farmers and the rural communities that rely on this sector;

— that the continual trend of low grain prices, increased input costs and poor margins over the last number of years has intensified the income crisis and financial hardship in this sector;

— the average net margin on tillage farms in 2016 was minus €130 per hectare, as outlined at the recent Teagasc Outlook Conference;

— that severe inclement weather badly damaged and destroyed tillage crops in Autumn 2016, encompassing coastal regions and other counties;

— the introduction in Budget 2017 of an adjustment to the current ‘Income Averaging’ system, allowing for an opt-out in an exceptional year; this facility is available for the 2016 tax year, in recognition of the cash flow concerns of farmers;

— the December 2016 payment of €3 million under the Protein Aid Scheme, paid to over 1,000 farmers growing in excess of 12,000 hectares of beans, peas and lupins; this coupled scheme was introduced in 2015 as part of the implementation of the reformed Common Agricultural Policy package in Ireland; and

— the early payment of Basic Payment and Greening payments, which commenced on 17th October, 2016, with balancing payments issuing from 1st December 2016;

and calls on the Government to:

— commence the rollout of the Government’s €150 million Agri Cash Flow Support Loan Scheme, in co-operation with the Strategic Banking Corporation of Ireland (SBCI), as a direct response to the challenging situation faced by farmers in recent months;

— ensure availability through this Scheme of highly flexible loans to livestock, tillage and horticulture farmers, for up to six years, for amounts up to €150,000, at an interest rate of 2.95 per cent, made available in line with the European Union’s (EU) agriculture State aid ‘de minimis’ requirements;

— evaluate further measures for the long term sustainability of the tillage sector, pending the drawdown of this fund, and the resulting utilisation of ‘de minimis’ requirements, including in regions affected by a poor harvest in 2016 due to inclement weather;

— build alliances at EU level to seek Commission approval for temporary suspension of EU import tariffs on fertilisers to reduce input costs for tillage farmers;

— promote increased use of native grain and Irish malt in the manufacture of Irish whiskeys, artisan products and craft beers;

— consider further proposals submitted by farming organisations at the National Tillage Forum and convene a follow up meeting of stakeholders to engage in further discussions on the strategic future of the tillage sector; and

— open a Targeted Agricultural Modernisation Scheme (TAMS) investment tillage scheme.”

I welcome the members of the IFA and other organisations who are in the Gallery. I am pleased to have the opportunity to address the House on this very important matter. As a farmer, I acknowledge that 2016 was a challenging year for growers, both in terms of grain price and harvest conditions. My colleague, the Minister, Deputy Creed, will deal with the contention that there has an €86 million underspend last year. Most people who understand how budgeting works will know the facts.

As colleagues will be aware, the Minister, Deputy Creed, recently chaired a meeting with the main stakeholders in the tillage sector. This meeting provided a platform for the stakeholders to express their views and concerns on the challenges they are facing and to discuss the opportunities that lie ahead for the industry. I wish to advise the House of a number of key supports, some of which have been mentioned, that are available to the tillage sector.

On foot of a request from the forum, in direct response to the difficulties being experienced by farmers, one of our chief priorities was to provide low-cost, more flexible finance. In this regard, the Minister announced plans on budget day for a €150 million agri-cashflow loan support scheme. This has been developed in conjunction with the Strategic Banking Corporation of Ireland, SBCI, by leveraging EU and Exchequer funding totalling €25 million from the Department to deliver a total loan fund of €150 million, which will support highly flexible loans for up to six years for amounts up to €150,000. The commitment of national funding of €14 million to this initiative has allowed the inclusion of the important tillage and horticultural sectors. The interest rate applying is 2.95% and the product will be available to livestock, tillage and horticulture farmers. Loans will be provided in line with the EU’s agriculture State aid de minimisrequirements. This is a cash flow support facility to improve the working capital position of farmers and other viable primary agriculture SMEs. The loans will be unsecured and are primarily to provide working capital and to pay down expensive forms of credit, such as merchant credit and other short-term financing facilities, including overdrafts. The SBCI aims to make the loans available to the market by the end of this month.

The loan scheme is part of a three pillar strategy among the tax measures agreed with the Minister for Finance for an adjustment to the current income averaging system, which will allow for an opt-out in an exceptional year, including 2016. As an additional support, advance payments were made last year in respect of the basic payment and greening payment schemes. To date, €1.168 billion has been paid to 122,899 farmers under the basic payment scheme. In addition, payments in excess of €195 million have been made to more than 91,000 applicants under the areas of natural constraints scheme. A commitment to the development of the tillage sector is an integral part of this Government’s agricultural policy. Food Wise 2025 contains a number of key actions to increase the role and value of tillage. Most of these actions have been identified and put forward by the industry.

The elimination of fertiliser tariffs and anti-dumping duties is a measure that could help farmers to reduce input costs and in that context we have asked the Commission to consider a temporary suspension of customs tariffs and anti-dumping duties on fertilisers. It is also Minister Creed’s intention that the new targeted agricultural modernisation scheme, TAMS, measure, specifically tailored to the needs of the tillage sector, will open shortly. This scheme will support grain growers in drying. storing and marketing their grain so as to maximise market returns and details will be made available in the near future. The Minister also intends to shortly convene a follow up meeting of stakeholders at the national tillage forum. In full collaboration and co-operation with the various representatives of this sector, we will continue to seek to identify and target measures for the future development and advancement of this important sector of our industry.

See this speech in context