Willie Penrose (Longford-Westmeath, Labour) | Oireachtas source

I am glad to have the opportunity to speak on this report. I compliment Deputy Deering, who is an excellent Chairman, as was his predecessor. The moral or lesson is that one can become a Minister of State, just like Deputy Doyle, who was previous Chairman of the Oireachtas Committee on Agriculture, Food and the Marine and did an excellent job.

When I was growing up in Westmeath, some farmers spoke slightly resentfully of "the time of the tillage", by which they meant the years of the Second World War when farmers were compelled to increase their production of cereals and root crops which could not be imported due to the war. As much of the land in Westmeath is fairly heavy land and not suitable for tillage, it took a big effort and a lot of hard work, and that was why a bit of resentment was understandable. Up to the 1970s, nonetheless, a large proportion of farmers in Westmeath grew some cereals and root crops.

The price supports for beef and milk provided under the CAP resulted in a sharp decline in Irish tillage farming as very little CAP support was provided for tillage. Only 9% of arable land is now devoted to tillage and the acreage has declined by 14% in the past five years. There are now only 3,000 specialised tillage farmers but they are highly productive, as shown by the fact that Irish crop yields are among the highest in the world. A large part of the decline in tillage is due to the abandonment of sugar beet production because of the EU allowing greater tariff-free imports of cane sugar. One of the recommendations focuses on the revival of the sugar beet industry. I think all the stakeholders who have expressed an interest should get together and redouble their efforts. The Minister should help out in a practical way to secure this worthwhile objective. It was a sad and poor day for Ireland when it was closed in 2005. I remember it went through here nice and coolly, but even a midlander like myself knew the importance of the sugar industry.

The reduction in tillage output has led to increased dependence on imports with only 40% of Ireland's cereal consumption being domestically produced.

Many of the cereals imported into this country are genetically modified. While Ireland does not grow genetically modified crops, I am concerned that if imported cereals are fed to livestock, it will be difficult to sustain the clean and green image of Irish food production. That is why we need to increase tillage production. I know it is a very big threat. We are very proud to have a very clean and good industry. We can secure the industry completely if we ensure that we increase production.

The fact that Irish cereal production is free of genetically modified organisms, GMOs, offers an opportunity for the tillage sector to produce more premium products for food production rather than for animal feed which accounts for most cereal production at present. The establishment of several new whiskey distilleries and numerous craft breweries, including some in my constituency of Longford-Westmeath, also offer opportunities for increased production of high-quality cereals. There may be a case for a quality-assurance premium for Irish GMO-free grain which could establish for such grain incentives similar to those for the quality-assured Irish beef of which we are so proud. While Irish beef and dairy production are major contributors to Ireland’s CO2 emissions, tillage crops sequester carbon in the soil as they grow. As the EU moves towards more carbon-friendly farming, greater tillage output will help Ireland achieve its carbon reduction targets.

The potential for biofuels is not being realised and the acreage under such crops has stagnated. There are opportunities not only for biomass crops as a source of energy but also for biopolymers, biochemicals and insulation materials. Biofuel crops can be grown in areas not suitable for cereals and are less weather dependent than the latter. However, we have some history in this regard and people have not forgotten the lessons of the past decade, when many farmers got burnt.

The potential for organic crops in Ireland is not being developed. I am aware that organic production is very hard work and that the price premium for organic products is often not enough to make production worthwhile.

Over the past 20 years the arrival of discount supermarkets has put relentless downward pressure on the price paid to farmers for vegetables. Not only did the big supermarkets coming in from abroad eliminate the little local shop, they also did terrible damage in the context of the prices farmers get. They did that with vegetables. Earlier, Commissioner Hogan said something to which I subscribe, namely, that the abolition of the groceries order was the biggest mistake the country ever made and we are paying a significant price. Fair play to the Commissioner, who sent out a clear signal to whatever Government might be around that he should be reappointed to the position because at least he speaks the truth to power.

While low food prices are obviously good for consumers - at least they think they are good - particularly those on low incomes, good-quality food cannot be produced cheaply. Darina Allen has said that when she advocates for good-quality food, she is dismissed as elitist and told that people cannot afford quality food. However, a recent survey found that the average Irish family spends one fifth of its food budget on so-called treats that are full of sugar and fat and empty of nutrition. Many people seem willing to spend money on anything other than good-quality food. An effective campaign of education of consumers is needed to inform people of the importance of domestically-produced wholefoods. Families with children in Ireland spend on average €1,037 per annum on crisps, chocolates and sweets and only €346 on vegetables. As a result of this consumption pattern, there has been an alarming increase in childhood obesity - I suppose I am a good example of that - and all the attendant health risks that go with it.

The snow in late February and early March also highlighted a vital reason for Ireland to produce more of the food it consumes. Many people think that because Ireland is a large food producer, we could survive any crisis in which food supplies were disrupted. We know that 90% of our beef is exported. The supply chain for many foods is now long, complex and easily disrupted. There is a strong case to be made for Ireland to become more self-sufficient in basic foodstuffs and in order to achieve this, tillage farmers need greater support. While the old CAP led to overproduction and left us with butter mountains and wine lakes, the withdrawal of price support for wheat has led to a huge drop in stocks of wheat. This means that there is little wheat available when shortages emerge due to adverse weather conditions. Such weather conditions will be more frequent in the future.

Transport is the major contributor to CO2 emissions and consumers are becoming more conscious of food miles. Supermarkets offer green beans from Guatemala, asparagus from Peru and strawberries from Egypt. While I am not suggesting that Irish consumers be confined to carrots and turnips during the winter, the current global system of food production and transport is not sustainable. A return to sourcing more of our food supplies locally is vital if we are to slow down global warming. We could have a treble hit here.

Irish tillage has a promising future if it can respond to the demand for more sustainable and healthy food products but tillage farmers need greater support from the Government and the EU. In the forthcoming reform of the CAP, tillage crops should be given more consideration and more resources need to be put into supporting sustainable agriculture.

I mentioned the Second World War. Irish agriculture prospered during that period because we were able to meet much of the increased demand for food in the UK. Brexit poses a challenge for all Irish food exporters but Irish tillage producers will require support to maintain their share of the UK market and to enter new markets.

The prediction is that, by 2025, there will only be 1,500 full-time tillage farmers who will produce 60% of the output, with 11,000 people involved in tillage and energy production at some level. As I discussed with Deputy Martin Kenny, it is not profitable to produce tillage crops and tillage farmers are competing with a pretty profitable dairy industry. While I hate to use the term, it is a perfect storm.

It is not often that I praise the IFA; I rightly take issue with it. I would be one of the few Deputies to have the courage to do that. I know many farmers support what I say and not what the IFA says. However, I have great admiration and time for Liam Dunne of the IFA grain committee. He is based in the Acting Chairman's county. He knows his onions. He has been arguing about ways of reducing input costs, including initiatives relating to VAT. Whenever he speaks, I listen with care because I know he puts considerable work into it. Nevertheless it is a huge challenge to get people into tillage. Unless it becomes profitable we will be shooting against the wind. Given issues such as input costs and VAT, we have to discriminate in favour of tillage. We need more domestically produced food. I think we can do that profitably and make tillage attractive again. It was always attractive.

We need 6 million tonnes of animal feed and, as the Minister of State, Deputy Doyle, said, we are producing approximately 2 million tonnes per annum. The balance is imported. We have climate issues and rotation issues. The real issue is that there is inadequate financial return for those who sow tillage crops, which says it all.

In 2016, the average income on special tillage farms was approximately €30,800, with direct payments making up €26,000. Less than €5,000 was coming from the market. That was for enterprises other than cereals. Only a quarter of tillage farmers earn in excess of €50,000. Machinery is the biggest cost incurred by tillage farmers, amounting to approximately 40% of the total cost of growing crops in Ireland according to Teagasc specialists. Farm and land fragmentation plays a significant role in that.

Protein crops and others that the Minister of State mentioned have potential. However, in order to get back into grain and tillage properly we will need to ensure it is profitable and reward those who take risk in the tillage area.

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