Pat Deering (Carlow-Kilkenny, Fine Gael) | Oireachtas source

I move:

That Dáil Éireann shall consider the Report of the Joint Committee on Agriculture, Food and the Marine entitled 'Future of the Tillage Sector in Ireland', copies of which were laid before Dáil Éireann on 22nd November, 2017.

Last autumn, the Oireachtas Joint Committee on Agriculture, Food and the Marine examined the issue of the tillage sector and its future. In undertaking this body of work, it wished to explore the full range of actions which could benefit the tillage sector. One of the main reasons the committee decided to examine this sector was because it had suffered several bad years with poor weather and low prices. While the focus of agriculture continues to be placed more on dairy and meat production, the tillage sector represents an area that could hold a high degree of untapped potential. For example, it may hold the key to emerging industries such as energy crops, as well as underpinning a vibrant and diverse artisan sector.

Launched last November, the report illustrates how the future of the tillage sector has its challenges, but within those challenges there are opportunities. While capturing some of these opportunities and benefits may not yet be feasible, others can be implemented now and in the short term. This report sets out several options that are comprehensive, wide-ranging, concise and realistic, all supporting a vibrant tillage sector with a strong future. The report itself covers a large range of sectors and issues, highlighting the importance of tillage to the economy. There are 35 recommendations in total, covering the tillage sector generally; increasing yields and profitability; energy generation and energy crops; supporting agriculture; and the input costs and support of the tillage sector. The report and these recommendations are intended to provide a basis for engagement between stakeholders in formulating a tillage sector plan, as well as a strong and solid future for the tillage sector. Most of the report's recommendations deal with increasing profitability and yields, along with energy generation and energy crops. They also touch on horticulture, input costs and supports such as insurance.

On the tillage sector generally, one key issue considered is the potential for insurance-type schemes, as operated in other countries and other member states of the European Union. As we have recently seen, the tillage sector operates in a high-risk environment. While the report does not set out the structure such a scheme could take, the magnitude of the risk necessitates an examination of the merits of such an approach in Ireland.

Among the key recommendations is the importance of glyphosate in the farming community. The committee has recommended that the Minister would vocally support the extension of the licence for glyphosate, which was subsequently extended by the European Commission. While this is to be welcomed, the continuing importance of such fertilisers cannot be overstated. The report notes there are some questions on the long-term reliance on specific chemical products and there is opposition to glyphosate in some member states. However, it continues to be essential in achieving acceptable yields.

One aspect of the tillage sector that could be viable is the domestic sugar beet sector. One key recommendation concerns an updated review of the potential to revive the sugar beet sector. Ironically, with the demise of the domestic sugar production sector, the difficulties in the tillage sector became more apparent. The support of small scale sugar beet production for the provision of molasses to Irish poitín producers was also recommended. The sourcing of Irish raw material by Irish distillers and brewers is to be welcomed. The report suggests an industry-wide conversation should be held on the value of Irish inputs in the context of Origin Green.

However, there are a number of recommendations that address particular points. The adoption of a fair trade system for Irish brewers was one possible avenue recommended by the committee. This would involve brewers paying a slightly higher price per tonne in exchange for the right to use a specified logo identifying them as being supportive of Irish farmers and aligning commercial breweries with a form of social enterprise. The use of long-term contracts is also a possible avenue that could be explored. This would provide security to farmers and allow them the flexibility to invest more in their farms. In addition, with the impending impact of Brexit, there is an opportunity for Irish alcoholic beverage producers to increasingly rely on Irish grain for production purposes. Such an approach could help enormously in stabilising the tillage sector in the face of the considerable difficulties it is currently facing.

The unique selling points of certain products must also be preserved. This is particularly the case for Irish whiskey, where the ageing requirement is essential to the recognised quality of Irish whiskey. The committee recommended retaining this as any change to the requirement could undermine this recognised quality.

While the committee did not issue any specific recommendations on the use of genetically modified organisms, GMOs, it is explored in some detail.

The case for and against GMOs is set out in the report, as well as whether such crops are commercially viable for development or whether they suit Irish conditions. The report highlights two key questions, namely, whether the Irish people are willing to accept GMO as safe on the basis of the body of research in existence and whether the use of GMO is viable economically or scientifically in Ireland.

Organic crops have some potential and the report discusses the benefits and challenges associated with such crops in some detail. The report's key recommendations are the development of a new organic action plan along with a commitment to produce new action plans on an ongoing basis. The report recommends that organic farming should be prudently encouraged and it is essential that this is done where it is viable. However, given the high risks involved, appropriate risk mitigation tools may also need to be explored.

Tillage has considerable potential to be a more central component of Irish agriculture and in achieving a stable future, the marketing of Irish produce is also important. The committee recommended that Bord Bia should work with exporters to promote Irish products that are labelled “Produce of Ireland”. Such labels can leverage the “Irishness” of these products and make a strong distinction between what is “produced in” Ireland and what is “produce of” Ireland.

Turning to energy crops, the report notes it will be essential that financial support is made available in order to avert the negative fiscal and environment consequences of reduced tillage farming in favour of higher emission alternatives. The joint committee has recommended that policies should, insofar as possible, support tillage farming and has highlighted the importance of a strong tillage sector in terms of food and feed security. In the event of a substantial number of tillage farmers opting to pursue livestock farming instead, this could have a profoundly detrimental effect on Ireland’s agricultural greenhouse gas emissions.

Additionally, the committee recommends the swift implementation of the recommendations of the tillage sector action plan of 2012 if, following a review, it is warranted. It calls for a major co-ordinated review of all support schemes; the consideration of supports for the conversion of large-building heating units; rewarding energy crops through agrienvironmental schemes, for example, for biodiversity; and available support to help biomass boilers achieve lower emissions.

The potential benefits of energy crops are discussed in the report, and the committee is currently completing a report on climate change in the overall agrifood sector. A key recommendation is that a review be undertaken of its potential to fully identify its feasibility in Ireland and to inform policies to enhance its potential. This is not without risk, however, particularly in respect of the potential failure to meet the 2030 emissions targets. To establish the economic risks involved, the report recommends that a likely figure for the cost of such a failure be determined.

Another area discussed in the report is the potential of horticulture, which may offer an opportunity to dramatically increase agricultural output. The benefits and challenges of controlled environment horticulture in particular are discussed in some detail. The committee recommended that a detailed study be undertaken on the viability of expanding greenhouse growing in Ireland, and recommends that opportunities for controlled environment horticulture and vertical farming be explored.

The recommendations also include the crucial issue of input costs is also included in the recommendations. Reducing costs to farmers should be a consideration of net contributors to the EU and the primary issue identified in the report is the level of tariffs placed on fertiliser imports.

The report includes a welfare analysis, which highlights the potential benefit that a complete elimination of import duties on fertilisers would have for farmers. The committee recommends that the Government try to form a coalition of net contributors to the Common Agriculture Policy, CAP, to seek action by the European Commission on these tariffs. I will conclude by emphasising the importance of the CAP for the tillage sector, the sector which has probably suffered more than any other in the last CAP reform. The report highlights how direct payments accounted for 85% of farm income in the sector in 2016, which further underlines how important the CAP really is. We have an opportunity to maintain and enhance supports to the Irish tillage sector - and the EU tillage sector in general - in upcoming CAP negotiations. Protecting the direct payments to this sector, while exploring ways to enhance supports, is of paramount importance. This can be done by maintaining the CAP budget and using resources in a targeted and effective manner to provide the greatest benefit to all producers, including tillage farmers.

I am confident this report represents a comprehensive overview of the Irish tillage sector, the challenges it faces and the potential gains open to it. It outlines options and avenues to be explored and, if approached in the right way, I believe there is a bright future for tillage farming in Ireland. I hope this report meets the favour of the House and look forward to the debate.

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