Dáil debates

Thursday, 26 May 2022

Ceisteanna Eile - Other Questions

Farm Costs

11:30 am

Photo of Peadar TóibínPeadar Tóibín (Meath West, Aontú)
Link to this: Individually | In context | Oireachtas source

125. To ask the Minister for Agriculture, Food and the Marine if his Department is monitoring the increase in the cost of fertiliser; and if so, if he will detail the percentage increase in the cost of fertiliser over the past three years. [26209/22]

Photo of Peadar TóibínPeadar Tóibín (Meath West, Aontú)
Link to this: Individually | In context | Oireachtas source

The increase in the cost of fertiliser is hammering farmers across the country at the moment. According to the Central Statistics Office, CSO, there has been a 130% increase in the space of just two years in the cost of farm fertiliser. Farmers are also being hammered by energy prices, which have gone up by 30%, while feed prices have gone up by 20%. The input costs for farming are increasing at an alarming rate while the output cost, the cost of the product, is not going up at the same rate. What will the Government do to help farmers?

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I thank the Deputy for raising this important issue. It is proposed as part of Ireland's draft CAP strategic plan, which is currently with the European Commission for approval, that there will be two approaches within the EU agri-environment climate measure, AECM. The first approach will be an environmental approach that offers a range of actions that individual farmers may undertake. The second approach will be a co-operative project approach, available to farmers in defined, high-priority geographical areas where a successful applicant will undertake bespoke farm, landscape and catchment measures, and may also be able to select from a general suite of actions under the AECM. Farmers participating in this approach will have the assistance of a local co-operation project team who will assist with implementation of the scheme at local level.

The proposed new AECM will contain both results-based elements, that is, a participant’s payment will be based on achieving measurable results, and prescription-based actions. Prescription-based action was the payment model for previous agri-environment schemes, such as the green low-carbon agri-environment scheme, GLAS, which is just completing. The inclusion of results-based actions will assist in ensuring that farmers will be paid for the results they achieve.

For the results-based actions, the environmental health or condition of the habitat is scored using a range of indicators-----

Photo of Alan FarrellAlan Farrell (Dublin Fingal, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Minister is reading the wrong reply. This is Question No. 125 in the name of Deputy Tóibín.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Aontú)
Link to this: Individually | In context | Oireachtas source

My question relates to farm fertiliser.

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Pardon me.

Photo of Alan FarrellAlan Farrell (Dublin Fingal, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I have the correct reply here, if it is helpful to the Minister.

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I apologise to Deputy Tóibín. The current situation around the cost and availability of farm inputs remains a significant concern. The impact the invasion of Ukraine is having on our farm families has been the number one priority the Department in recent months. It will continue to be prioritised.

Fertiliser prices have increased significantly over the past 12 months and, unfortunately, there is no sign of an easing of prices in the short to medium term. Prices are being driven by a number of factors, including global demand, energy prices and availability. Russia’s illegal invasion of Ukraine has led to significant hikes in energy prices and significant concerns around supply chain disruption. This is being felt at farm level and is something of which that I am acutely aware, as we have discussed.

In general terms, using the CSO fertiliser price index and taking calcium ammonium nitrate, CAN, as a representative product, there has been an average increase of 321% in the price of these fertilisers from March 2020 to March 2022. Overall, CSO data highlight that the general price of fertilisers has increased 149% in the past 12 months.

As the Deputy knows, one of the key responses I have introduced to try to help mitigate that challenge is the €1,000 fodder support scheme. It is obviously important that we continue to maximise our capacity to grow grass in this country. Therefore, the Government is working closely with farmers to support them. We cannot mitigate the effects of all of the costs but we are certainly working in partnership with farmers to back them over the months ahead.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Aontú)
Link to this: Individually | In context | Oireachtas source

I was waiting for the word "fertiliser" to appear in the Minister's reply. Thankfully, we are there now. It is important to focus on what is happening in farming at the moment. Teagasc has detailed that there are major difficulties in the farming community at the moment. Only one third of farmers are currently making a living from farms. Another one third of farmers are only making a living because somebody in the household is working off the farm as a teacher or a nurse, or is working in a shop. A full one third of farmers in this State are making a loss or going into poverty or debt. Farmers are already in big trouble.

The costs of fertiliser, feed and fuel are going through the roof. The inflation farmers face today is the inflation everyone else will face tomorrow. We have a cost-of-living crisis and the cost of foodstuffs will increase as long as the input costs in farming are increasing. We are calling on the Government to subsidise the cost of fertiliser to farmers and directly reduce the cost to them.

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

That is the objective behind the fodder support scheme I have introduced, which is paying €100 per hectare, up to a maximum of €1,000 for 10 ha. That is intended to support farmers with the cost challenges involved in growing silage and saving hay this year. We, as a Government, very much recognise the difficulties at this time. The cost of fertiliser, in particular, has impacted farmers. The additional cost pressures for contractors also have an impact. That €1,000 will be a real help to farm families in meeting the challenge of growing silage and hay over the course of this summer.

Thankfully, we have had a good growing season so far. We must recognise the challenges we have and that they are the result of the war on European soil for the first time in a generation. We must also recognise that we cannot take things for granted in the coming winter and spring in a way we would have in the past. We must ensure our silage pits and hay barns are full. We must also ensure we are prepared to continue to produce food next winter and spring. As a Government, we stand alongside farmers and will work to support them to meet that challenge. I recognise the work farmers are doing in stepping up to the mark and thank them for it.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Aontú)
Link to this: Individually | In context | Oireachtas source

I welcome the fact that the Government has made an effort to start to meet some of the costs with which farmers are dealing.

However, from what I am hearing from farmers, it is not enough. We had a debate in this Chamber about a week ago on the issue of food security which is a significant concern at the moment. Food supply chains are tightening in this State and internationally. In fact, in some parts of the world, including countries in the west like Britain, certain staple foods are being rationed. In Britain, for example, supermarkets are reducing the amount of sunflower oil that individual customers can buy.

We need to make sure we grow the Irish agricultural sector. Every year farmers leave the farming sector. Every year young farmers make an assessment of whether there is a living to be made from farming and many decide that there is not. As a result, we have fewer farmers every single year. I call on the Minister to make sure there is proper investment and proper subsidies are available to farmers because €100 per hectare is not enough.

11:40 am

Photo of Michael McNamaraMichael McNamara (Clare, Independent)
Link to this: Individually | In context | Oireachtas source

I raised this issue with the Taoiseach and the Tánaiste earlier in the year and they said that the Minister for Agriculture, Food and the Marine was meeting EU agriculture ministers and would be able to detail what was happening afterwards. When the Minister met the EU agriculture ministers, did he call for a reduction in or the abolition of EU import tariffs on fertiliser? I appreciate that is not something he can do unilaterally but it is something the EU agriculture ministers can do if they put their minds to it. Did he call for that and is it going to happen?

The Minister talked about incentives to ensure there are full sheds of hay and pits of silage at the end of the year but there is an obstacle to that which the Minister can deal with unilaterally. Farmers with low-input permanent pasture cannot cut hay and silage if they are in GLAS. The Minister is trying to incentivise them to do so but they cannot. Will they, on a temporary basis for this year or for as long as this fertiliser crisis lasts, be allowed to cut silage? Likewise, traditional hay meadows can only be cut once because cutting can only take place after a certain deadline. Will that deadline be brought forward to allow for a second cut this year? These are matters the Minister can deal with unilaterally.

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

To take Deputy McNamara's points first, I want to ensure that farmers are getting an income from those schemes. It is important that the conditions of the schemes are met in order to make sure that the income is available. If we can ensure that farmers do what they normally do and grow grass as well as they normally do, using the land that they have, we will be in a good position next year. That is why I have come forward with a cost support to help farmers in making hay and silage. We all know that by next March or April we will not be able to grow grass or do much in relation to fodder here. As Minister, I will not be able to import fodder as I might have done in previous years. We do not have that safety valve. We also cannot be sure that we will have the safety valve of increasing the grain fed to cattle to mitigate a fodder shortage because we cannot be sure that there will be an adequate supply of grain available. What we can do is work now to grow grass, silage and hay. That is why the Department and my ministerial colleagues and I are working with farmers to back them in preparing for next winter and spring by putting the fodder scheme in place. My message to farmers is to continue doing what they are doing, in terms of really stepping up. It is very important that we recognise that now is the time to act to prevent challenges arising next winter and spring.

Photo of Michael McNamaraMichael McNamara (Clare, Independent)
Link to this: Individually | In context | Oireachtas source

What about lifting the tariffs?

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I have asked for that. It is disappointing that we have not had action on it yet but I have been asking for it.