Dáil debates

Tuesday, 15 February 2022

Saincheisteanna Tráthúla - Topical Issue Debate

Farm Costs

9:05 pm

Photo of Michael CollinsMichael Collins (Cork South West, Independent)
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Farmers are on the cusp of losing farms, due to the financially crippling fertiliser costs, which are burying local farmers in debt, mainly due to crazy, green policies. The average price of fertiliser a year ago was a costly high of €300 per tonne. Today’s prices have skyrocketed, with CAN fertiliser costing Irish farmers more than €600 per tonne and urea costing more than €900 per tonne. Consequently, for a typical, mid-sized farmer feeding 120 tonnes of ration and using 30 tonnes of fertiliser per year, the rise in input costs will add €23,400 in additional costs.

The main driver for increased fertiliser costs in Europe are the record natural gas prices, due to the Government’s agenda to decarbonise electricity generation through over-zealous and half-baked green policies. The EU's policies to protect the Continent’s fertiliser producers by imposing import levies on fertilisers are also having an impact.

Just a few weeks ago at a meeting of the Joint Committee on Agriculture, Food and the Marine, I challenged Mr. Fabien Santini from the European Commission's Directorate-General for Agriculture and Rural Development on the origins of, and response to, the crisis. He stated that each member state government has been given the latitude to provide unique farmer support through a relaxation of the state aid framework. This mechanism is currently only available until 2022. I cannot understand for the life of me why this Government has not used this mechanism, which Mr. Santini told us is available.

9:15 pm

Photo of Mattie McGrathMattie McGrath (Tipperary, Independent)
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I thank the Ceann Comhairle for allowing us to raise this Topical Issue matter. It is a hugely important issue. This is going to affect every man, woman and child in the State. The Minister of State might ask how that is. Farmers cannot buy fertiliser. Thankfully, credit unions are stepping in to give loans because the banks are not lending and the Government is standing idly by. We have been told by the European Commission that member state governments can make decisions to intervene and try to lessen the price. Sweden has dropped the price of fuel back to 2018 levels but here we are rubbing our hands and talking about packages for the Luas and everything else. We have to do something about the cost of fertiliser because it is adding pressures across the board, to the food chain, to the housewife and to mum's purse on a Friday evening. People just cannot afford it. The farmers cannot afford it. A Green Party Deputy welcomed the cost of fertiliser because he said it would stop people using nitrogen and everything else. That is a warped kind of thinking. Farmers, including mixed farmers, dairy men and everything else practise good animal husbandry. They want to have good fresh grass and fresh produce and to be able to produce it at a reasonable cost, which they can pass on in the price of milk and everything else. If this keeps spiralling out of control, the housewife and mum's purse, or the househusband or whoever else, will not be able to afford to live. It is unbelievable.

Photo of Danny Healy-RaeDanny Healy-Rae (Kerry, Independent)
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I raised this issue back in November and it is now the middle of February, which is when farmers need to spread their fertiliser. To take one product alone, urea was €330 a tonne this time last year. Now it is €930 a tonne. That is the gospel truth. Farmers cannot work without getting some bit of a profit. At this rate they will not survive. They will have to pass their costs on to the consumer. People are wondering about inflation and what is causing it. This is one of the causes. I ask the Minister for Agriculture, Food and the Marine to do two things, the first of which is to forego the levy or tariff of €50 a tonne that is being charged on countries outside the EU. Second, I ask that the Government subsidise fertiliser at this point in time. I am serious. It would mean a difference to the housewife and the farmers and everyone if it did that.

Photo of Pippa HackettPippa Hackett (Green Party)
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I am here on behalf of the Minister, Deputy McConalogue, who is away at the moment. I thank the Deputies for raising this important matter. The very significant rise in fertiliser prices in the last year, and particularly in recent months, is concerning and my Department is closely monitoring the situation. While there are a number of factors at play in the market, there is no sign of fertiliser prices easing in the short to medium term. There are no fertilisers manufactured in Ireland. Rather, fertiliser companies blend a number of imported fertiliser products into different compositions suitable for agricultural use in Ireland. Indigenous fertiliser companies are dependent on global supply and demand and are subject to euro exchange rates against the US dollar and other currencies on the price they pay for fertiliser. The well-publicised rise in gas prices, which is a key input in nitrogen fertiliser production, has contributed significantly to the upward trend in fertiliser prices. Furthermore, an exacerbating factor is the increased demand for fertiliser from large grain-producing countries, which is being fuelled by strong global grain markets. This increased global demand has impacted on supplies and added to upward pressure on prices. The imposition of anti-dumping tariffs from certain third countries is, of course, an additional, albeit secondary, factor when fertiliser is imported into the EU from these producing countries. It is clear that there has been a confluence of issues over the past 12 months or so, all having an upward effect on global fertiliser prices. Energy prices remain well above January 2021 levels and transport costs have also added to price increases.

In October 2021, the Minister for Agriculture, Food and the Marine requested that Teagasc lay out a credible roadmap to assist farmers in the short term, as well as offering a long-term solution in the move to reduce dependence on chemical fertiliser. The Soils, Nutrients and Fertiliser Campaign was launched on 26 January. Teagasc has put together a comprehensive information pack for farmers and their advisers through a compendium of 20 fact sheets, to optimise the use of plant nutrients and to help farmers address the challenge of maintaining-----

Photo of Danny Healy-RaeDanny Healy-Rae (Kerry, Independent)
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Ah, Minister-----

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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Deputy, please.

Photo of Pippa HackettPippa Hackett (Green Party)
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-----their farm outputs in the face of rising fertiliser costs and reduced availability. Teagasc is working with farmers through the Soils, Nutrients and Fertiliser campaign to help them adapt to the current fertiliser market and support them to make informed decisions on what is best for their farms. This is a strategy that can ease the price pressure on farmers. It is a strategy that will be good for the environment and good for farmers' pockets.

At the November meeting of the Agriculture and Fisheries Council, the Minister raised the increasing challenge faced by farmers due to the rising costs of inputs. The EU Commission was called upon to consider all options to ease the pressure on farmers at this time, including whether the imposition of anti-dumping duties on fertiliser imports continues to be appropriate and for this matter to be examined as a priority. Following the November meeting, the Minister wrote to the EU Commissioner, Janusz Wojciechowski, requesting that the Commission's assessment of the ongoing appropriateness of anti-dumping duties on fertilisers be completed as a matter of priority. The EU Commission responded on 26 January to say that it is still collecting information to establish the relevant facts.

In addition, a new €1 million initiative by my Department will support the planting of multi-species swards in order to reduce dependence on fertilisers. This scheme will support farmers to use multi-species grass when reseeding. It will mean a mixture of complementary species will be sown, including clover, which will enable farmers to significantly reduce their use of nitrogen. A pilot soil sampling programme has also been introduced by my Department, which will provide farmers with comprehensive details of the soil health and soil condition of their farm. This will provide them with critical information to make farm management decisions on nutrient inputs to the most efficient levels.

With fertiliser prices constituting such a high portion of a farmer's expenditure, we are aware that the impact of continued high fertiliser prices will have a negative effect on farmers' businesses. Ireland, unfortunately, will remain a fertiliser price-taker in this regard.

Photo of Michael CollinsMichael Collins (Cork South West, Independent)
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I thank the Minister of State. She says her Department is closely monitoring the fertiliser crisis. In the name of God, it has been going on for the last seven or eight months and there has been nothing from the Department. Mr. Santini of the EU agriculture committee said that this country can intervene on this matter but the Government has failed to do that. Fianna Fáil, Fine Gael and the Green Party are going to wipe out the farmers of this country. The Government has had an opportunity to help and it has failed. It is extraordinary that this Government has so far failed to use this tool to assist our burdened farmers and mitigate the higher global prices of farm inputs. It is shameful that it has not done so. The Minister of State talked about Teagasc and collecting information. The information is there. The farmers are facing a massive crisis. When they go to the their co-ops, they are unable to purchase or pay for the goods. Would the Government kindly intervene, like it had to do previously during the fodder crisis? Can the members of the Government at least take their hands out from underneath themselves and do something for these farmers? I ask the Minister of State to please not stand idly by on the other side of the House and tell us that the Government is thinking about doing something or looking into it.

Photo of Mattie McGrathMattie McGrath (Tipperary, Independent)
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We did not even get a copy of the Minister of State's reply. This is balderdash and total bunkum. It is also Green Party policy. Talking about growing clover and mixing things is an insult to farmers. The chairman of the agriculture committee is sitting behind the Minister of State. He knows this. The Green Party is codding Fianna Fáil and Fine Gael. It is shocking. It is destroying agriculture, and destroying Ireland for that matter. We will take decades to recover. Credit unions are trying to bail out farmers and give them loans to buy the fertiliser but what will happen then? We talked about the cost of living for two hours earlier. The cost will be added on to the price of food. The Minister of State knows that; she is from a farm herself. The Government needs to cut out the codswallop and codology and intervene. The EU Commission said member states can intervene but the Minister of State stands idly by and rubs her hands and looks as if she cannot do anything. Of course she can but she does not want to because Green Party policy is to destroy the farmers and wipe out the farming communities completely. We are going to have a wasteland like Jurassic Park where people can come on holidays. It is shocking.

9:25 pm

Photo of Pippa HackettPippa Hackett (Green Party)
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I thank the Deputies. I reiterate that the cost of fertilisers has nothing to do with Green Party policies. It is an global price increase because of gas prices.

Photo of Mattie McGrathMattie McGrath (Tipperary, Independent)
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Senator Hackett is in government.

Photo of Pippa HackettPippa Hackett (Green Party)
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Globally, gas prices have increased.

Photo of Mattie McGrathMattie McGrath (Tipperary, Independent)
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Blame everyone.

Photo of Pippa HackettPippa Hackett (Green Party)
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If the Deputy has been following any of the current affairs, he will be aware of that. Fertiliser is essentially made from gas. If the gas prices, the fertiliser price goes up. I cannot be much clear than that.

Photo of Michael CollinsMichael Collins (Cork South West, Independent)
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I asked the Minister of State what the Government is doing.

Photo of Pippa HackettPippa Hackett (Green Party)
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We have engaged, as I said, with the EU Commissioner on Agriculture. We have requested that they assess one of the aspects in terms of the appropriateness of the anti-dumping duties. We are making inroads into that. We are hoping that the EU Commission will respond with some positive news on that. Certainly, my colleague, the Minister-----

Photo of Mattie McGrathMattie McGrath (Tipperary, Independent)
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Why do they not do something themselves?

Photo of Pippa HackettPippa Hackett (Green Party)
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My colleague, the Minister, Deputy McConalogue, has been seeking that as a priority.

Photo of Danny Healy-RaeDanny Healy-Rae (Kerry, Independent)
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Sleepy wrote a letter.

Photo of Pippa HackettPippa Hackett (Green Party)
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The measures I outlined are practical measures.

Photo of Michael CollinsMichael Collins (Cork South West, Independent)
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We need them quick.

Photo of Pippa HackettPippa Hackett (Green Party)
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We are ultimately on a roadmap here to-----

Photo of Mattie McGrathMattie McGrath (Tipperary, Independent)
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To destroy farmers.

Photo of Pippa HackettPippa Hackett (Green Party)
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Not at all. The Deputy is wrong. It is to enable farmers to become sustainable so that their farms are sustainable for future generations. The current model does not work.

We cannot leave farmers at a loose end with no fertiliser. We need to support farmers to adapt to farming practices. Deputy Michael Collins should know. I understand the Deputy is an organic farmer.

Photo of Michael CollinsMichael Collins (Cork South West, Independent)
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I am. I am proud to be organic but the Minister of State is letting down my neighbouring farmers who cannot afford the fertiliser.

Photo of Pippa HackettPippa Hackett (Green Party)
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The Deputy should share his knowledge.

Photo of Michael CollinsMichael Collins (Cork South West, Independent)
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The Minister of State does not understand.

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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Let the Minister of State answer.

Photo of Pippa HackettPippa Hackett (Green Party)
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The Deputy should share his knowledge as an organic farmer-----

Photo of Michael CollinsMichael Collins (Cork South West, Independent)
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The Minister of State is letting down my neighbouring farmers.

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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No, no. Please let the Minister of State answer.

Photo of Pippa HackettPippa Hackett (Green Party)
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-----with his colleagues.

Photo of Michael CollinsMichael Collins (Cork South West, Independent)
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They cannot afford the fertiliser.

Photo of Pippa HackettPippa Hackett (Green Party)
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The Deputy should share his knowledge with his colleagues.

Photo of Michael CollinsMichael Collins (Cork South West, Independent)
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I am quite willing do so but there are real farmers out there who work their farms day and night-----

Photo of Pippa HackettPippa Hackett (Green Party)
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My Department is working hard.

Photo of Michael CollinsMichael Collins (Cork South West, Independent)
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-----and they cannot afford it.

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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Please, Deputy.

Photo of Pippa HackettPippa Hackett (Green Party)
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We have commitments within our climate action plan-----

Photo of Mattie McGrathMattie McGrath (Tipperary, Independent)
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The Government has banjaxed the farmers.

Photo of Pippa HackettPippa Hackett (Green Party)
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-----to reduce the volume of fertilisers we use. My Department is working hard to put in place measures-----

Photo of Mattie McGrathMattie McGrath (Tipperary, Independent)
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The same as the forestry.

Photo of Pippa HackettPippa Hackett (Green Party)
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-----that will support farmers.

Photo of Danny Healy-RaeDanny Healy-Rae (Kerry, Independent)
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The Government is doing nothing. The Minister wrote a letter.

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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Please, no. Come on, have a bit of manners.

Photo of Pippa HackettPippa Hackett (Green Party)
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No. If the Deputies actually bothered to listen to my response at the start, they would have heard a number of measures outlined.

Photo of Danny Healy-RaeDanny Healy-Rae (Kerry, Independent)
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They wrote a letter.

Photo of Michael CollinsMichael Collins (Cork South West, Independent)
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We heard nothing.

Photo of Pippa HackettPippa Hackett (Green Party)
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I will gladly share with the Deputies my response.

Photo of Danny Healy-RaeDanny Healy-Rae (Kerry, Independent)
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The Minister wrote a letter.

(Interruptions).

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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Deputies, please.

Photo of Pippa HackettPippa Hackett (Green Party)
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The Deputies can follow up on some of those comments there.

Photo of Michael CollinsMichael Collins (Cork South West, Independent)
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A Ceann Comhairle, it is a disaster.

Photo of Danny Healy-RaeDanny Healy-Rae (Kerry, Independent)
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It is very clear that they have done nothing and they will not do anything.

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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No, please. This carry-on is not serving anyone's interest.