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

It has been fascinating to listen to the debate and I acknowledge the work done by the committee, its individual members, the secretariat and the Chairman in bringing forward a report. It is timely as we are at a critical stage in negotiating the shape of the Common Agricultural Policy after 2020. The viability of the tillage sector is contingent on the appropriate policy framework being delivered and that needs to happen to ensure this critical industry can survive.

I take note of all of the contributions that have been made on the level of acreage under the plough and the fact that it has dropped. However, one of the most significant structural challenges the industry faces is that it is substantially dependent on rented land. Deputy Martin Kenny and I had a conversation earlier today about the future of the Common Agricultural Policy. I understand from where he was coming in his point which, in principle, I support, about delivering more supports to smaller farmers, but here is the rub. In this sector which is particularly challenged they have, on average, among the highest payments made under the single farm payment system. The payments are a historical legacy or entitlement and in order to retain them, farmers are obliged year in, year out to pay extraordinary levels for rented land. It is a vicious circle and we need to find a rational way out of it. They are now competing with farmers on the dairy side and those involved in both sectors are paying excessive amounts. We hear extraordinary figures quoted for an acre of rented land for tillage or dairy production, which brings into question the issue of sustainability. We use that word very often in the context of environmental policy but financial sustainability also applies. The farmers in question receive among the highest payments, but a lot of it - I use the term advisedly - is frittered away. Because of the paradigm in which they are stuck, they have to take land in order to retain the entitlement. Deputy Martin Kenny made a point earlier today at Question Time about capping payments. We need to deliver a fairer model and provide for more equity in the allocation of CAP funds without having unintended consequences, which was the point I made.

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