Dáil debates

Tuesday, 16 April 2013

Topical Issue Debate

Animal Feedstuffs

5:35 pm

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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While I have great respect for the Minister of State, Deputy Sherlock, I am disappointed the Minister is not present, although I compliment him on the good results achieved in the area of DNA testing. There is a major crisis in farming and it is particularly acute in the south which experienced unprecedented rainfall last summer. As a result, many farmers did not manage to make the quantity of silage they make in a normal year. The problem is affecting dairy farmers and high intensity farmers with a high turnover and low margin in particular. We have had a long, cold spring and anyone driving in the countryside will note the grass is brown rather than the normal green colour. Despite the milder weather of the past week, it will be another three weeks before farmers are able to fully turn their cattle out to grass. Many farmers are at breaking point. Some have been pushed so far they have tried to self-harm, while several have done worse.

I ask the Minister to take the simple step of allocating €10 million of his substantial budget for an emergency fodder scheme that would be made available to farmers in severe financial difficulty. Under the scheme, which would be administered by the Department and Teagasc, moneys would be disbursed to farmers in crisis who would be identified on the basis of financial information and the position on the ground in respect of fodder. We should put this issue into context. It costs approximately €7,200 to feed 60 cattle for 20 days and many farmers do not have this sum to meet the cost of feed.

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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With respect, while the Minister of State will be fully aware of the position on the ground, the Minister, who is around the House or in the Department, should have at least come before the Dáil to discuss a most serious crisis facing the agricultural community. The issue was raised in July 2012 when the problem started and on many other occasions since, yet the Minister and his Department have not once accepted that there is a crisis. In recent weeks, I have been approached by farmers who are at the end of their tether. A small co-operative in Boherbue intervened last week and bought silage to distribute to hard-pressed farmers and other co-operatives have done likewise.

It is similar to the tale of the loaves and the fishes because people are counting the number of bales they have left and the level of rations they are feeding to their animals. Some individuals are feeding 12 or 14 lbs of rations to their animals, which is unprecedented. These are farmers who have been obliged to keep their cattle indoors since last July. In other words, their animals have been inside for nine months. In some instances where conditions have been particularly severe, cattle have had to be kept indoors since the end of June 2012.

This is the greatest crisis facing the agricultural community. The millers who are providing the concentrates at present are at the end of their tethers because their credit has been completely exhausted. They are returning to their customers in the farming community and seeking payments on accounts. However, no one has the money to pay them. Deputy Ó Cuív referred to an amount of €7,200. Some farms do not even have €700 to spend. In some instances the sole income for families comes from their farms but they have no turnover and no cash on hand. During my time as a Member of the House, I have never been known to exaggerate on issues but the impact of the crisis facing agricultural communities in my area and in others throughout the country cannot be overstated. I am of the view that a task force to deal with this matter must be established immediately because there are some whose farms or businesses will not survive the week.

5:45 pm

Photo of Jim DalyJim Daly (Cork South West, Fine Gael)
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Cuirim fáilte roimh an Aire Stáit chun plé a dhéanamh linn ar an ábhar an-tábhachtach seo.

I join my colleagues opposite in highlighting the importance of and stressing the urgent need to deal with this matter. It is no exaggeration to describe what is happening as a crisis. Cattle are starving and farmers across west Cork are facing mounting fodder bills as a result of the exceptionally long winter. I am of the view that exceptional circumstances require exceptional responses. I call on the Minister for Agriculture, Food and the Marine to consider introducing a series of measures - I do not believe any one measure alone will solve the crisis - aimed at rescuing our most vital industry, namely, agriculture. The Minister is not to blame for the bad weather, which is a natural phenomenon with which farmers must deal. I have spoken to the staff of some of the local co-ops in west Cork and I have been informed that there has been a massive and, in many cases, unsustainable spike in the amount of credit being extended to farmers just so they might keep their cattle alive.

Despite the recent and welcome improvement in weather conditions, this crisis will run for some time yet, particularly when the full cost to farmers becomes apparent during the coming months. I believe in prescriptive as well as diagnostic politics. In that context, I wish to prescribe three solutions for the Minister's consideration. I ask the Minister of State, Deputy Sherlock, to communicate these directly the Minister, Deputy Coveney. The first of these solutions relates to the establishment of a hardship fund to be distributed by the co-ops. Farmers will testify that if it were not for the co-ops, they would not be able to survive. The latter have been extremely generous in the context of the credit arrangements they have extended. However, such arrangements are only serving to prevent farmers from going over the edge. The second solution I wish to put forward would involve the Cabinet instructing the banks to exercise more leniency with farmers who are struggling to make repayments. The third solution would involve the Minister - in light of the impact of this crisis - impressing on his colleague, the Minister for Social Protection, the need for the criteria relating to the farm assist scheme to be re-examined in order to make life bearable for farmers.

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry South, Independent)
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I support my colleagues in respect of this very important matter. At present, farmers are attending auctions and competing with their neighbours to buy fodder. That is how bad the situation has become. Earlier today I received a telephone call from a woman who was extremely upset. I could not ring her back when her mobile phone ran out of credit. The woman in question did not have enough money to send to the Department to pay for tags relating to new calves. Deputy Moynihan stated that some farms do not have €700 in income. In many cases, those who own farms do not even have €70.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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I am taking this important matter on behalf of the Minister, Deputy Coveney, who wishes me to convey his apologies to the House regarding the fact that he is not able to be present to discuss it. I fully acknowledge the concerns that have been raised. We have all received visits to our constituency offices from farmers in recent weeks. I am aware that the Dairygold Co-op in my area is planning to import hay from the UK in order to try to alleviate the shortage. We are very conscious of the situation in which farmers, particularly those who live in more disadvantaged areas, find themselves at present.

The Minister has asked me to convey his acute awareness of the difficulties being experienced by some farmers as a result of recent unseasonable weather. The difficult conditions which obtained on farms last summer have been compounded by the extended winter. We acknowledge that the harsh weather of recent weeks has led to delayed grass growth and to increased demand for fodder and feed. Animals which, in normal conditions, would be on grass at this time of year have had to be kept indoors. While it is important to record that the outlook for our livestock sectors remains positive and that prices are relatively strong, it is clear that the conditions prevailing at present have resulted in short—term but significant management challenges. These include cashflow and credit issues - to which the Members opposite referred - for affected farmers who are faced with the burden of fodder shortages and additional feed costs.

In the context of the measures which can be taken to alleviate the problems on farms, the Minister urges farmers to contact their local Teagasc advisers. Where winter fodder is limited, Teagasc is providing specific advice and assistance on how to cope with the consequences of the weather conditions experienced this spring. Staff at all Teagasc offices are available to provide advice to farmers over the phone. Agricultural advisers are equipped and ready to outline the options open to farmers facing difficulties and to make plans which best suit their situations. Teagasc has also made extensive use of national and local media to provide farmers with advice and has co-ordinated with farm organisations, marts, local authorities, co-ops and other suppliers to provide targeted advice to all who need it. Advice for farmers on coping with fodder shortages has also been published, including guidelines to dairy and drystock farmers with little or no grass on feeding this spring. The Minister takes this opportunity to thank Teagasc for its efforts to date and asks that these be intensified in the coming days until the problems being experienced are alleviated by grass growth.

The Minister also notes that farm bodies have urged farmers to assess whether they have surplus fodder in stock and whether they are in a position to make some available to others in difficulty. These efforts are to be commended and the Minister echoes the call for those in need of assistance to be supported and urges people who have fodder to spare to be proactive in making it available to neighbouring farmers who are encountering severe problems. This is an occasion when solidarity is needed among the farming community. It is also the case that farmers have increased the usage of concentrates to fill the fodder gap. While addressing the fodder issue, in some cases this has resulted in problems with cashflow and access to working capital on farms. In response to farmers' concerns in this regard, the Minister has already written to the banks and will meet them shortly to highlight the extreme challenges facing farmers as a result of the weather. At that point, he will urge them to take a flexible approach to dealing with short-term credit issues. He will also write to the grain and feed merchants to urge them to be flexible during this difficult period.

It is important that financial institutions take into consideration the fact that while the current difficulties may cause cashflow pressures for farmers, the overall outlook for the sector is favourable. Commodity prices are very strong and the positive expectations for dairy, beef and lamb prices mean that farmers should see improved market return for their produce this year. The Minister would also ask that co-ops and others operating in the agrifood sector be sensitive to the particular difficulties being experienced by farmer suppliers this spring. The Minister recently announced an extension, to 15 May 2013, for the closing off of the traditional hay meadow measure in the agri-environment options scheme. He has allowed a deferral of one month to the closing-off date and this will help to maximise grass utilisation in the critical recovery period as the weather improves and grass growth resumes.

There is no doubt that the availability of forage on farms presents an ongoing challenge. The Minister has great confidence, however, in the resilience and ingenuity of the Irish farming community. The improvement in soil temperatures during the past week is very welcome and should see a return to more normal growth rates for grass and crops alike. This, together with relatively positive market conditions, should see a significant improvement in the situation in the coming weeks.

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry South, Independent)
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It is easy knowing who lives in the sunny south east.

5:55 pm

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I am devastated-----

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry South, Independent)
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It is shocking.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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-----by the Minister of State's answer. Is the Minister living in the real world? There is an old saying - mair an capall agus gheobhair féar, or live horse and get grass. The Minister seems to be telling the farmers of Ireland to go to everyone else, but not to bother him. Go to Teagasc, the banks or-----

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry South, Independent)
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The creamery.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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-----the creamery. However, those bodies do not have credit to give. The Minister has €1 billion in his budget. Putting €10 million aside to help the most needy cases represents just 1%. He has €244 million for administration. He could take €2 million out of it and €8 million of out the remaining €700 million or so for programmes. It would not even constitute a margin of error. He could do something immediately. The Minister of State should remember-----

Photo of Ann PhelanAnn Phelan (Carlow-Kilkenny, Labour)
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I must ask the Deputy to conclude.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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-----that animals need food, which costs money. Advice is not money and will not feed cattle. Will the Minister of State tell the Minister that all sides of the House are begging him to put money up front to resolve this crisis?

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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I am shocked by the reply. With due respect, the farmers who are in trouble have the best track records in animal husbandry. Check their records. Since the deluges started in June or July, they have followed through on the advice given to them. They have attended Teagasc offices. To be fair to the officials there and to the agricultural advisers across the country, they have integrated, but it was well past the time for advice three weeks ago. The weather will present further difficulties next weekend.

Perhaps I live in the part of the country that is the worst affected, but I am inundated with people discussing this matter. I have tried to assist them in every way. An urgent response is necessary, but there was no sense in the Minister of State's reply that the Government is serious. There must be a response today, not tomorrow.

Photo of Jim DalyJim Daly (Cork South West, Fine Gael)
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This is a serious issue. Listening to animals roaring with hunger is distressing for farmers who have devoted their lives to caring for them. The House cannot underestimate the crisis. I reiterate my plea to the Minister of State and join with my colleagues across the floor. I cannot quantify the number nationally, but some farmers are in dire straits and need help. Will the Minister of State consider establishing a hardship fund? There is time, as the full extent of the crisis will not become evident for some time. Credit bills are mounting and must be addressed.

Photo of Ann PhelanAnn Phelan (Carlow-Kilkenny, Labour)
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I must ask the Deputy to conclude.

Photo of Jim DalyJim Daly (Cork South West, Fine Gael)
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The Government can play a role in helping.

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry South, Independent)
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This is the worst piece of rubbish of a reply ever presented in the Chamber. It is a disgrace. To refer to the resilience and ingenuity of the farming community-----

Photo of Ann PhelanAnn Phelan (Carlow-Kilkenny, Labour)
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Deputy, please do not. I indulged the Deputy and allowed him one minute.

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry South, Independent)
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I thank the Acting Chairman, but what does the Minister expect farmers to do? It is no wonder that he is not present.

Photo of Ann PhelanAnn Phelan (Carlow-Kilkenny, Labour)
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I ask the Minister of State to reply. He has two minutes. He need not worry about my indulgence, but I will need to explain the matter to the Ceann Comhairle if we go over time.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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I take the Acting Chairman's point, but my understanding is that, with due respect to the Chair, three speakers indicated under the rules of the House and four speakers were granted time. If it is my fault that the time allocation has been impacted upon, I apologise and stand corrected.

Photo of Ann PhelanAnn Phelan (Carlow-Kilkenny, Labour)
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I take the Minister of State's important point.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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No Deputy does not acknowledge the problems facing farmers, particularly those in rural and disadvantaged areas. Some of the prescribed solutions border on blind rhetoric. Fair enough, as that is part and parcel of what we are about in the House. However, that a former Cabinet Minister claims that €10 million should be made available from administration and other sources within the Department leads me to the conclusion that-----

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry South, Independent)
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It is a perfectly sensible proposal.

Photo of Ann PhelanAnn Phelan (Carlow-Kilkenny, Labour)
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Please, Deputy. Allow the Minister of State.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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-----it should be taken from other schemes.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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If necessary. That is what I would have done.

Photo of Ann PhelanAnn Phelan (Carlow-Kilkenny, Labour)
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Please allow the Minister of State to reply.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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If that is the case, the Deputy should prescribe from which schemes and farmers the money would be taken.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I will. I suggest that the Minister attend the Chamber.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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This is a difficult situation. Some reasonable interventions were made about the potential development of a hardship fund. In that sense, I will convey the Deputies' concerns to the Minister.