Tom Fleming (Kerry South, Independent)
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To ask the Minister for Agriculture, Food and the Marine his views on the way that the various farm schemes will be funded in 2013 in view of the challenges (details supplied) facing many farmers. [48448/12]

Simon Coveney (Cork South Central, Fine Gael)
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The budget allocations for 2013 will be considered in the context of the gross expenditure ceilings allocated to all Departments for the period 2012-14 under the Government’s medium-term expenditure framework. The Government’s decision on expenditure ceilings was taken in order to strike a balance between needs and priorities in all Departments on a multi-annual basis, to meet the requirements of the overall fiscal commitments, which are firmly focused on returning the public finances to a sustainable path and to reduce the general Government deficit by the end of 2015. Budget 2013 will be framed in this framework.

The preparations for the 2013 Estimate are currently under way and all budget lines in my Department’s Vote are being examined critically as part of that process.

Under the expenditure ceilings, the funding allocation for my Department has been reduced by €114 million in 2013 compared with this year. Very difficult choices will have to be made again in order to remain within the reduced allocation.

The detail of the Deputy's question which refers to the difficulties farmers have faced this year is very much in my mind as we make these difficult choices, in order to protect farm schemes and farm income as well as we can. We had a constructive discussion with the Joint Committee on Agriculture, Food and the Marine on the difficult decisions relating to the budget and how we might be able to make savings in as fair a way as possible and continue to support farmers who are in financial difficulty because of a summer of appalling weather. I will continue to engage with the joint committee to that effect.

Tom Fleming (Kerry South, Independent)
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The future of Irish agriculture and the maintenance of the family farm is at a crossroads. This year has been challenging, with disastrous weather conditions, soaring costs of feed, fertiliser, fuel and energy and falling prices. At certain times this year cattle prices fell dramatically.

It is imperative that the forthcoming budget does not compound these difficulties, with agriculture again taking the brunt of the cuts. In the 2012 budget, cuts of 17% were imposed on farm schemes. These were hugely disproportionate compared to cuts of 3% or 4% across all Departments.

I am disappointed to hear that the Department's allocation has been cut by €114. Between now and the finalising of the budget, the Minister may be able to go back to the table in that regard. I know he is working against all the odds and pulling against the tide. He is addressing matters as well as he can. He has brought forward the payment of the single farm payment and has endeavoured to maximise the amount of money available from a small fund. Nevertheless, I ask him to do his very best.

Simon Coveney (Cork South Central, Fine Gael)
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Within budgetary constraints, we have tried to respond as proactively as we can to what has been a disastrous summer. We did that with regard to slurry spreading dates. We reduced the closed period for most of the country by six weeks. We pushed back the deadline by a month and pulled the end date back by two weeks also. We have also relaxed the green cover requirements for people who have not been able to till fields. We brought forward a 50% advance of the single farm payment by six weeks. This has happened in the past but nevertheless it does not happen by itself. Disadvantaged area payments, and so on, are well ahead of schedule. I am conscious of the difficult environment in which many farmers are operating this year.

The reduction of €114 million in funding allocation should be no surprise to anyone. The figures for expenditure ceilings that apply to different Departments were published the year before last and last year, and will be published again this year. I can only do one of two things. I can argue to increase the ceiling on the amount of money available to me for capital or current expenditure, where I consider there is a structural problem in the ceilings agreed. If I do that some other Department will have to lose money. Alternatively, within the savings I have to make I can be as clever as I can to ensure that we protect farm incomes above all else. We are doing that, primarily by trying to find ways to save money within the Department. I remind colleagues that in the last three years, my Department has reduced the cost of running itself by €70 million. We reduced staff numbers by 900 and the number of regional offices was reduced from 58 to 17. We are trying to target ourselves, first and foremost, to make savings, but we will not make €114 million of savings within the Department alone.

Tom Fleming (Kerry South, Independent)
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This will be the most demanding winter ever faced by farmers, particularly on the western seaboard, where we are bearing the brunt of Atlantic weather conditions. We have a significantly high amount of rainfall in Kerry. There are thousands of tonnes of fodder being brought down from the eastern seaboard, particularly from Wicklow. The Minister can imagine what it will be like in January or even next month for some of those farmers. We must re-examine the situation to reduce the possible negative impact.

Figures were published in the agricultural supplement of the Irish Independent today for per hectare payments for the single farm payment. The figure for Kerry was €178 per hectare, while for Cork, where the land is excellent, especially in the east of the county, the figure was €313 per hectare. There are huge variations between the west and the east coasts. The south-eastern counties got up to €340 per hectare while the figures per hectare for Donegal and Leitrim were €166 and €168. I support the call by Deputy Colreavy. We must have some balance and give the same opportunity to maintain small family farms to all farmers.

Simon Coveney (Cork South Central, Fine Gael)
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I understand those points. I was in Kerry a couple of days ago to speak to more than 300 farmers in Listowel to outline our approach to both pillars of the CAP. We had a constructive meeting.

I know Kerry and parts of west Cork were hit hardest by rainfall over the summer. Farm schemes are more important in years like this when they help to get farmers through difficulties caused by circumstances outside their control, like the weather. It is important, however, to balance what the Deputy said about single farm payments with pillar 2 payments. The vast majority of farmers in Kerry receive a disadvantaged area payment while the majority in Cork do not, under pillar 2. There are various ways to support farmers in terms of income supports. People must look at the full picture instead of drawing conclusions only from the single farm payment.

Having said that, there is still a major difference in the single farm payment between and even within counties. Some of the best farms in the country and some of the most challenging farming conditions exist in Kerry. That is why we propose to redistribute money under the single farm payment, but how far do we go? Do we bring everyone to an average in the one go or do we move everyone towards an average payment with a significant level of redistribution? My concern is that if we do it too quickly or extensively, we will put some very productive farmers out of business and that is not in anyone's interest because we must keep herd numbers up to retain employment in the agricultural sector in factories, marts and dairy processing plants. We must look at the broader picture and not just the money that will be given out into farmers' hands.