Martin Heydon (Kildare South, Fine Gael) | Oireachtas source

I congratulate the Leas-Cheann Comhairle on his elevation to his very important role. I look forward to working with him in the Dáil term ahead. I congratulate him and his family on a very prestigious honour.

I welcome this opportunity to speak to the House on the importance of agrifood to the overall Irish economy. In a week in which the European Commissioner for Agriculture and Food, Christophe Hansen, has published his vision for agriculture and food, I believe it is a very timely debate and discussion to have in the House. As Ireland’s largest indigenous exporting sector, the agrifood sector is made up of thousands of farmers, fishers and foresters, who day in, day out produce the highest quality food and raw materials. Their work and the work of those in our manufacturing sectors is something to celebrate. It is something to be proud of and something to work to protect.

It is an honour for me to take up the role of Minister for Agriculture, Food and the Marine and take responsibility for these sectors. It is an immense privilege, and I intend to do everything within my power to help grow and develop the sector. My passion and grá for farming were instilled in me from a young age by my mother in particular and it has stayed with me to this day. It is a passion I will bring to this role each and every day. I want to communicate a fresh understanding of what it is farmers, fishers, foresters and the food industry contribute to Irish society and the economy. This is a sector that drives economic growth throughout Ireland, particularly in rural and coastal communities.

We need to better explain the contribution the sector makes. Its roots run deep. There is not a parish in the country that is not enriched by the contribution made by farmers, or where some small business does not depend on this sector for its existence. The sector is responsible for the stewardship of 4.5 million ha of agricultural land and more than 800,000 ha of forestry. It consists of 133,000 farms, 2,000 fishing vessels and aquaculture sites and some 2,000 food-production and beverage enterprises. It employs more than 171,000 people, representing 6.4% of the total workforce but a much greater proportion in rural and coastal areas. The agrifood sector's performance is a testament to the dedication of people working across farms, fishing vessels, aquaculture sites and food and beverage enterprises in Ireland. Their hard work and expertise are the driving force behind the agrifood sector’s success.

Ireland’s agrifood produce has a globally renowned reputation for quality and safety. Irish agrifood exports reach more than 180 countries, with approximately 90% of our beef, sheep meat and dairy products destined for international markets. We have a livestock sector built on a unique grass-based production system. Global demand for high-quality, nutrient-dense food is increasing with growing populations, urbanisation and affluence. We are ideally placed to play a role in meeting this demand.

Recently published CSO figures show that Irish agrifood exports reached a record value of €19.2 billion in 2024. This is an increase of more than 6% on the value achieved in 2023 and an increase of 1.6% on the previous peak levels achieved in 2022. To put this achievement of €19.2 billion in 2024 into context, it represents an increase of 58% in value from €11.6 billion in the decade since 2014, and a doubling from €8.9 billion in 2010, prior to the establishment of the ten-year Food Harvest 2020 strategy.

While the exports of the multinationals are crucially important to the economy, agrifood is the bedrock of our exports. As someone first elected as a Teachta Dála in 2011, I will never forget the role agriculture played in reviving Ireland’s economy during the last downturn. The sector has an enormous multiplier effect in the wider rural and local economy, ranging from 2.5 for beef and 2 for dairy and food processing, compared with 1.4 for the rest of the economy and a multiplier of just 1.2 for foreign-owned firms. Agriculture and agrifood is a sector that is forward-looking, dynamic and innovative. We have to project this image not only because it is true but because what people from outside the sector think really matters. I believe if the average consumer could see the innovation and ingenuity at the heart of our food production system they would be blown away.

I am delighted the Minister of State at the Department of Enterprise, Trade and Employment, Deputy Grealish, has a specific focus on supporting the sector in this work, through his responsibilities for food promotion, new markets and research and development. I know he will continue the momentum of building a modern, outward-looking sector for the future.

Each production sector makes a value economic contribution to the overall agrifood sector in Ireland. The seafood sector provides more than 15,000 direct and indirect jobs across fisheries, aquaculture, processing and ancillary sectors in Ireland. In 2024, the value of Irish seafood exports was €592 million. Over the five-year period from 2020 to 2024 in excess of €800 million was made available to the seafood sector, which included investment of almost €160 million in State-owned public marine infrastructure. The Government will pursue all avenues to increase fishing opportunities for our fishers, while maintaining sustainable stock levels based on scientific evidence. We will also support the inshore fishing, aquaculture and processing sectors. The Minister of State, Deputy Dooley, will lead the development of a dedicated strategy for the development of this vital sector.

The forestry sector accounts for almost 11.6% of our land area. While still below the EU-27 average, forest cover in Ireland is estimated to be at its highest level in more than 350 years. Latest figures for employment in the forestry sector, including logging and the manufacture of wood and wood products, stood at nearly 6,500. Ireland exported more than 1.4 billion tonnes of forestry and wood-based products to more than 80 countries in 2024, valued at €634 million. It is a sector that has felt the brunt of Storm Éowyn. I and my colleague, the Minister of State with responsibility for forestry, Deputy Michael Healy-Rae, immediately established the forest windblow taskforce, bringing together all stakeholders to assist those whose forests have been affected and who are faced with a major clean-up operation.

It is expected that a satellite imagery assessment being undertaken by my Department and Coillte on the private and public forest estates will be completed very shortly. This will give a more accurate picture of the scale of damage, which appears to be significantly greater than that of Storm Darwin in 2014, which was significant in itself. The satellite imagery and assessment of the scale of the damage will inform any future action to be taken. For those who already have a clearfell or thinning licence as well as a forest road licence, these may be used immediately to clear sites. Early figures that have come back from some private forestry companies indicate that more than 50% of forests that have been damaged already have a felling licence. For those with licences either in the system or yet to be submitted, the Department will prioritise these as we explore further options for a simplified approach, taking account of all EU environmental obligations. We must also be mindful that trees which have blown over have an economic value to the landowner. We want to assist them in realising that value. I and the Minister of State, Deputy Healy-Rae, remain committed to supporting the sector through this very difficult period and long into the future.

Looking to animal and crop production, early estimates for output, costs of inputs and farm income in 2024 are favourable.

After a difficult start to 2024, the most recent Teagasc estimates forecast an increase in farm incomes in 2024. According to the Teagasc outlook, the average family farm incomes in that year are expected to recover by 49% to €29,200, with all production systems represented trending positively. It is either wise or foolhardy that we would make predictions when it comes to agricultural prices, but the latest indications for 2025 from Teagasc are positive. Family farm income is forecast to rise by a further 22%, with increases driven mainly by improved output value. None of this implies that we should deny the challenges facing the sector. There are things we need to work on and address to ensure our sector continues to deliver for farmers, consumers and the economy.

The agri-climate rural environment scheme, ACRES, and resolving the challenges farmers have faced with payments are top of my priority list. More than €428 million has issued to farmers in respect of their participation in ACRES to date. This includes advance payments of €182 million to 42,128 farmers in respect of their participation in the scheme in 2024. This figure represents just over 78% of all farmers in ACRES. It does, however, mean that just over 12,000 farmers are still awaiting their advance payment for 2024. Included in this cohort are 2,764 farmers who have still to receive their balancing payment from 2023. While they did receive an interim payment last year to acknowledge that, I acknowledge the significant frustration and challenges for those farmers who have not received clarity or who are awaiting payment. Farmers are a resilient group and, like a lot of good business people, they can deal with most things that are thrown at them when they know what it is they are dealing with and when they know the timelines and impediments. That is what we must resolve.

There are a number of issues affecting payments. As I delved into this in my first month in the role, I realised these include instances where farmers have applied to transfer their contracts, issues with regard to the submission of scorecards for the results-based payment, and the completion of outstanding IT functionality. Where the impediment is on our side in the Department, if extra resources are needed, I am very clear that they will be found and we will do everything we can to get this addressed as quickly as possible. This work is being prioritised and it is my priority to have outstanding cases resolved as quickly as possible. Payment runs are taking place fortnightly and every case that gets cleared goes in for the next payment run within that 14-day period. It is vital that farmers' confidence in ACRES is restored with permanent solutions found to these issues so that they do not arise again in future payment runs. I have instructed officials in my Department to issue regular online updates over the coming period on the progress being made. Balancing payments in respect of farmers’ participation in the scheme in 2024 will commence as scheduled in May, and it is my determination that the majority of outstanding payments will be resolved by this point, with the most complex cases finalised in June at the latest.

Looking at the performance across some of our key farm production sectors, dairy, as our largest and most diversified agrifood category, serves 140 markets and accounts for 34% of Irish agrifood exports. Ireland is the eighth largest exporter of dairy globally, with 40% of produce exported destined for markets outside of the UK and the EU. The nitrates derogation is a major issue of concern for the sector. This Government will do everything in its power to retain the nitrates derogation. I am committed to advancing the best possible case to renew the nitrates derogation upon which so many farmers and surrounding sectors depend. I do not underestimate the challenge of this in circumstances where most member states do not avail of that derogation. There will be difficult choices and decisions to be made. I am confident, however, that the unprecedented engagement across the entire agrifood industry between my Department, farm bodies, industry and State agencies will all help drive improvements in our water data. Farmers throughout the country are already engaged in action to mitigate the impact of agriculture on water quality. The most recently published Environmental Protection Agency, EPA, data show significantly reduced nitrates concentrations in our rivers in the first half of last year. We need to see the same levels of commitment across all sectors, including wastewater treatment, and in the coming weeks a Cabinet committee on water quality, chaired by the Taoiseach, will sit for the first time. This will bring a whole-of-government approach to these issues and ensure farmers are not left to shoulder the burden alone.

Looking at the beef sector, Ireland exports close to 90% of the beef produced. Beef exports amounted to €3.1 billion in 2024 and accounted for 16% of total agrifood exports. Global market prices for beef were strong in 2024, and demand is expected to further increase in 2025, partially driven by positive consumer sentiment and tightening supply in other areas. In 2024, sheep meat accounted for €393 million in exports by value, with around 85% of Irish sheep meat exported to more than 30 markets. The EU market remains the primary outlet for Irish sheep meat, with France accounting for one third of all exports by value. Global demand is expected to exceed global supply in 2025. Across both the beef and sheep sectors, supports provided by our Department include the national beef welfare scheme and suckler carbon efficiency programme, the sheep improvement scheme and the national sheep welfare scheme, and they all make an important contribution to farmers' incomes. We can only achieve a sustainable sector if the three legs of that sustainability stool - economic, social and environmental - are all in balance. Farmers cannot go green if they are in the red. That is why I am committed to supporting farm incomes. An increased Vote provision of €2.1 billion in 2025 will allow my Department to provide increased targeted supports for the beef, dairy beef and sheep sectors in 2025.

In recent weeks, I have attended a number of farm organisation AGMs and met with a wide range of farmers. One issue that was raised with me repeatedly was the EU-Mercosur agreement. This is a particularly difficult issue for the Irish beef sector. I am in favour of free trade because it has been good for Ireland and Irish farmers in the context of exporting 90% of what we produce. In every trade deal, however, Ireland has consistently highlighted the need for a level playing field and that the EU-Mercosur agreement should include legally binding commitments on sustainability, including climate, biodiversity and deforestation protections. I raised these concerns directly with my counterparts across Europe at the AGRIFISH Council meeting on Monday, 27 January. At the heart of my opposition to this deal, beyond even the economic aspects, is the need for a consistency of approach. EU farmers are subject to complex regulations requiring them to farm in a sustainable manner. It will be difficult to explain to EU and Irish farmers why preferential access is being given to Mercosur countries if we are not satisfied that its farmers are subject to the same requirements. I am committed to working with like-minded EU countries to stand up for Irish farmers and defend our interests in opposing the current Mercosur trade deal. A blocking minority of 35% of the EU population would be needed to prevent the Mercosur trade deal from going through, so acting alone, with our 5 million population, is not going to decide this. France is opposed, however, and Austria is in that space. What the likes of Italy and Poland do really matters, and that is why we continue to engage with those like-minded countries.

Returning to the different sectors, Irish pigmeat exports exceeded €888 million in 2024. While the proportion of primary pigmeat exports destined for the UK and the EU has grown significantly, international market demand has declined in recent years. The sector returned to profitability in 2023 and 2024 following significant challenges in 2021 and 2022, and it is expected to continue to deliver profitability into 2025. Poultry exports were €292 million in 2024, accounting for 1.5% of total agrifood exports. A reduction in volumes exported is attributed to growth in domestic demand. The favourable view of poultry as a relatively low-cost, high-protein option is expected to support continued consumption globally into 2025. The rising risk of avian influenza is something that does greatly concern me. We are dealing with a very live situation in this space at present. We have introduced a compulsory housing order, and I am urging all flock keepers and poultry farmers to observe the highest standards of biosecurity to help combat this threat.

The tillage sector forms a critical part of the overall Irish agrifood ecosystem. Exports of cereals and cereal products, comprising almost 4% of total agrifood exports, amounted to more than €760 million in 2024. For cereals, there was a 25% increase in gross margins in 2024 compared with 2023 and overall increased margins due to increased support payments, price rises and reduced input costs. Margins are variable and crop specific. However, continued improvements are expected in 2025. I say this in the context of recognising how difficult the years 2023 and 2022 were.

To date my Department has paid out more than €5.6 million under the straw incorporation measure, almost €9.7 million in protein aid and €32.4 million under the tillage and horticulture support scheme. These payments are a critical support for tillage and underline the importance of the sector to this Government. Today I am announcing a further €1.9 million in payments under the baling assistance payment, which was introduced in summer 2024 as a once-off measure to support tillage farmers to produce straw for bedding and fodder.

While noting the excellent performance of our agrifood sector, we must be mindful of sustaining our farming sectors. There remains a challenge of attracting young people and new entrants into a career in farming. Ageing demographics in the farm sector are a widely recognised issue both nationally and at EU level. The future of Irish agriculture depends on attracting the next generation of farmers. This is one thing I will passionately pursue over the coming years. I believe it must be a two-pronged approach. The older generation, who have given a lifetime to the sector and possess significant corporate knowledge, must be supported while viable pathways are created for young people to enter the sector.

Nationally, there are strong taxation measures in place facilitating generational renewal and significant supports for young farmers under the CAP. However, the proportion of older farmers is still growing. While we already do a lot in this space, we need to do more.

Last October, an independent commission on generational renewal in farming was established. This commission is examining all aspects of this issue because it is a very complex space, with emotional and financial factors in play. Its aim is to ensure we make best use of the policy tools and other supports available to encourage young people into the sector. The commission will bring forward its report on potential options for the future by the end of June this year and this will form the basis for future policy development.

Similarly, improving gender equality in our agrifood sector is essential to maintaining and building a strong agrifood sector. In 2024, the women in agriculture working group was established to oversee the implementation of a 12-point action plan arising from a national dialogue on women in agriculture. The group meets regularly to assess and monitor progress and will report shortly to the Food Vision high-level implementation committee. Achieving the necessary changes will take time, but this plan is a practical step towards a more inclusive, gender-aware future for the sector and one I am committed to progressing.

I want to reflect on future policy at European Union level. Ireland will hold the Presidency of the European Union in the second half of 2026. This will be a critical juncture in the development of a Common Agricultural Policy for the period after 2027. The publication of the European Commission’s Vision for Agriculture and Food comes ahead of the publication of legislative proposals for a new CAP later in the year. Many of the themes I have touched on today are reflected in the document. It acknowledges the important contribution that agriculture makes to competitiveness, innovation and rural development across the EU. It recognises the essential role of agriculture in the context of the EU’s climate action and environmental protection objectives. Perhaps most importantly, it recognises that food security is fundamental to the EU’s economic security and should never be taken for granted. There will be extraordinary pressure on the EU’s multi-annual financial framework, or overall budget, in the period after 2027. Member states are more concerned about defence than at any time since the foundation of the European Economic Community. I believe, however, that the Commissioner’s vision provides the basis of a strong argument for a robust and fully funded CAP in the next EU budget. Ireland will strongly support this proposition. I look forward to discussing the vision with agriculture and food Commissioner, Christophe Hansen, and my fellow ministers at the AGRIFISH Council in Brussels next Monday, and to working closely with stakeholders in Ireland over the next few years on the future direction of CAP.

I am optimistic about the future of the agrifood sector. This sector has a central role to play as food producers, employers, a foundation of sustainable rural communities, protectors of the environment and the guarantors of food security in Europe and the world. We need to restore pride in our farmers, fishers and foresters. We must acknowledge their proud legacy and recognise the essential role they play in building a sustainable Ireland for future generations. This is a sector supported by a programme for Government that recognises its critical importance and its potential. It is modern and dynamic sector with roots in the domestic economy but an economic footprint right across the world. I look forward to working closely with all those who have a stake in it to deliver on its potential to continue making an enormous contribution to the Irish State. I look forward to working with all Members of this House to get the very best outcome for the agriculture sector in the term ahead.

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