Charlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

I thank the Deputy for his engagement and for his advocacy on behalf of farm families over these challenging months. The input price challenge facing our farm families is something we are both very much aware of, as is the Minister of State, Deputy Heydon. Over the past year, significant price rises have occurred, primarily in the energy sector, with natural gas and oil prices reaching record highs. These high prices have had significant impacts in all sectors. Following a strong year for farm incomes last year, when average incomes were up by 26% to more than €34,000, Teagasc has forecast that a decline in 2022 is now highly likely, given output price increases will fail to offset the increase in production costs.

Significantly higher production costs will be a feature across all sectors in 2022 and, as we know, higher fertiliser costs and fuel prices are leading to increased pressure at farm-gate level. As the Deputy also knows, I set up the national fodder and food security committee to provide leadership and bring all our key stakeholders together to plot and lead out in meeting these challenges over the course of the year. The Department also has a rapid response team in place to do this.

In terms of supports, I announced a number of measures valued at €91 million this year to support the agrifood sector, including, importantly, the €56 million fodder support package, which delivers €1,000 per farm family to support the increased costs of making fodder, silage and hay up to 10 ha. I also delivered €20 million in two packages for the pig sector. I am working closely with the Minister of State, Deputy Heydon, who is chair of the round table discussion on the pig sector and who has led out strongly on this challenge. I delivered €12 million for the tillage sector and then, with the Minister of State, Senator Hackett, €3 million for the horticulture sector, which has suffered a challenging situation.

These targeted measures are helping Irish farmers to mitigate the escalating costs they are facing. We are continuing to monitor the situation and, obviously, as we come up to the budget at the end of September, it will be very much to the forefront of our minds.

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