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

The interventions by the State should not be and have not been about interfering in terms of establishing a base price. Rather, they have been about supporting incomes, as has been the case under the Common Agricultural Policy for many years. These measures include the basic payment that every farmer receives as well as other supports such as the areas of natural constraint payment - 70% of the country is classified as ANC disadvantaged lands - or specific programmes under the rural development programme for beef farmers, for suckler farmers and organics. More recent initiatives have seen targeted interventions to respond to the income crisis, including a €100 million fund for beef exceptional aid measures and the beef environmental efficiency programme. There is an extra €120 million available this year for schemes specifically targeted to support incomes.

The consequences of previous support for product prices were butter mountains, wine lakes and so on. We have moved away from that and towards supporting incomes for farmers when the market does not function adequately, as is clearly currently the case.

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