Neale Richmond (Dublin Rathdown, Fine Gael)
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73. To ask the Minister for Agriculture, Food and the Marine if he will report on the way that the Russian war in Ukraine has impacted the Irish agricultural industry; and if he will make a statement on the matter. [52961/22]

David Stanton (Cork East, Fine Gael)
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This question concerns the impact of the Russian war in Ukraine on the Irish agriculture sector.

We were concerned about this when the war broke out. What has been the impact on energy, grain availability, food prices, fertiliser availability and so on and what is being done to support the sector?

Charlie McConalogue (Donegal, Fianna Fail)
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As I am sure the Deputy will agree, the people of Ireland have shown great support for Ukraine and the Ukrainian people following the illegal invasion by Russia. The Government remains resolute in its solidarity and support and will continue to co-ordinate a humanitarian, economic and diplomatic response to the crisis. Significant implications are being seen across all sectors, including the agrifood sector. As well as the immediate humanitarian crisis, which takes priority, we need to take the necessary steps to ensure food security is maintained for EU citizens, for the Ukrainian people and in the wider global context.

Significantly higher production costs are a feature across all sectors in 2022, with higher fertiliser, feed and fuel prices leading to an increase in agriculture input costs. According to the most recent agricultural price indices release by the CSO, agriculture input costs rose by 38% in the 12 months to August 2022. Fertiliser costs are up almost 130%, feed is up 36% and energy is up 41% over the past year. These three farm inputs accounted for almost half of all farm inputs in 2021.

While farm output prices have also increased in the past year, the increase is lower than the rise in input prices. Output prices have increased by 31% in the 12 months to August 2022, with milk up 52%, cattle up 22%, pigs up 27% and sheep up 5%. Following a solid year for farm incomes in 2021, with average family farm incomes up by 26% to more than €34,000, Teagasc has forecast a decline in 2022 is now likely across most farm systems, apart from dairy farming, as output price increases will fail to offset the rise in production costs.

There are currently no signs of fertiliser prices easing much in the short to medium term as prices are being driven by a number of factors, including global demand. As Russia and Ukraine are significant sources of global cereal exports, accounting for approximately 30% of world wheat and barley exports before the invasion, availability of cereals globally has been impacted.

David Stanton (Cork East, Fine Gael)
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I am substituting for Deputy Richmond in putting this question.

I am sure the Minister will agree the figures he has outlined are quite stark. There was an effort made at the start of the year to encourage more grain growing. What has happened in that regard? Has it worked, how many more hectares of grain have been produced as a result and what has been the impact of that?

Is the Minister concerned about the availability of fertiliser next year? Many farmers buy ahead, which means they may be okay this year. What is the position for 2023? Is he concerned about the cost and availability of food? Will we be under pressure if production goes down?

Charlie McConalogue (Donegal, Fianna Fail)
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Our assessment is that there are sufficient supplies of animal feed at present and importers are actively competing on the global market to ensure supply continues uninterrupted. However, prices are high. I meet with stakeholders on an ongoing basis to discuss the impact of the crisis on supply chains. As the Deputy knows, I established a rapid response team in my Department, along with the national fodder and food security committee, which I tasked with the preparation of a response to the emerging crisis in feed, fodder, fertiliser and other inputs and the development of contingency plans and advice to assist farmers in managing their enterprises.

Since the invasion started, we have taken a number of measures, valued at €91 million all together, to assist the sector, including €56 million for the fodder support package, €20 million in two separate packages for the pig sector and €12 million for the tillage sector. Regarding grain growing, the assessment is there has been a 6% to 7% increase this year, which will make an important contribution.

David Stanton (Cork East, Fine Gael)
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Will the Minister outline the supports he is putting in place in respect of energy costs? I am particularly interested in the targeted agricultural modernisation scheme, TAMS, and the condition that energy cannot be paid for if it is exported onto the grid. Any progress made in that area would be a huge help. The number of TAMS grants this year is down. I contend this is because of the possibility of participants not being paid if they export to the grid.

Charlie McConalogue (Donegal, Fianna Fail)
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Regarding energy and solar panel supports under TAMS, there is a requirement and conditionality where we are using EU funding that any energy produced be for on-farm use as opposed to export onto the grid. We are establishing a separate funding stream for energy production to the grid to ensure there is no impact on other TAMS applications. This scheme will allow for battery storage capacity, which will help farmers whose usage goes up and down at different times of the day. TAMS will be positive in supporting farmers to generate and use their electricity at farm level and in matching their needs in that regard to the level of TAMS-supported solar investment. Alongside these schemes, the Department of the Environment, Climate and Communications is bringing forward a feed-in tariff to pay for energy that is coming off solar panels into the grid, which can be done separately.