Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

135. To ask the Minister for Agriculture, Food and the Marine the extent to which he and his Department continue to monitor the cost of farm inputs, including fuel and fertilisers, with a view to identifying how best to meet the challenges of issues arising from the war in Ukraine; and if he will make a statement on the matter. [61278/22]

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I seek to ascertain the extent to which the Minister monitors the cost of inputs to farms, how it affects farm income and what efforts can be made to ameliorate these issues.

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

I am acutely aware of the impact rising input costs has on farmers, their families and businesses. This is a period of exceptional challenge and uncertainty for our farm families and I have been working to support them through this period.

The rise in feed and fertiliser prices in the last year has been significant. There are a number of factors at play in the market, including energy prices which remain well above January 2021 levels, and increased global demand, particularly from the big grain-producing countries. Controls of fertiliser exports from large fertiliser-producing countries, increased transport costs and EU-imposed tariffs and duties on certain third country imports are all impacting on prices for feed and fertiliser for farmers. Higher production costs have been an unwelcome feature across all sectors in 2022, with price rises for all the main farm inputs.

To support farmers with appropriate advice, earlier this year, I set up a national fodder and feed security committee under the chairmanship of Mr. Mike Magan, working very closely with Teagasc and its director, Dr. Frank O'Mara, and all the key farm leaders to bring all stakeholders together and ensure appropriate guidance to farmers. Teagasc have also been active in providing advice to farmers.

Over the past year, I have announced a series of targeted interventions for farmers, including support to increase the production of native grain from the tillage sector, as well as a multi-species sward and red clover sward initiative, which thrive with little or no fertiliser application and which, combined, had a total budget allocation of over €12 million to support farmers. In addition, I launched a €56 million fodder support scheme in June to which over 70,000 farmers have applied and which generated payments in the order of €54 million last week. In addition, an advance payment under the 2023 scheme of the order of €30 million will issue before Christmas.

I, along with my officials, will continue to actively engage with the animal feed and fertiliser industries, as well as farmers on this issue over the next period. I will also raise concerns with my European counterparts and the European Commission to ensure there continues to be an adequate supply of fertilisers available.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Has an audit been done on the impact of the various price increases on farm inputs, including energy? What can be done specifically in each and any case to reduce the impact? How much of a positive impact has been noticed in the agrifood sector as a result of these interventions?

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

We are closely monitoring this matter. My Department, working closely with Teagasc, is assessing the impact of costs on farm incomes. That is why I stepped forward with the fodder support this year to which farmers have responded very strongly. It is also why I brought forward the payment for next year to enable farmers to plan ahead and equip them with additional funds to purchase fertiliser ahead for next year. I also introduced the tillage incentive scheme of €400 per hectare to try to improve the production of feed domestically. That is an important scheme which I want to develop in the time ahead. Another significant change we made in the recent budget was to recognise the impact of energy costs at farm level by ensuring farm families were eligible for the energy support scheme. That was an important ask from stakeholders and we delivered it.

Planning ahead and making ourselves more resilient are important. I have spoken about the multi-species sward and the liming grant for next year. We are also making a significant step change around solar investments by providing up to 60% grant aid for investment of up to €90,000 of solar investment for each farm.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I congratulate the Minister on the tillage incentive which is hugely important. Based on the information available to the Minister and Department, what are the most likely areas of difficulty in the coming 12 months? How can the supports the Minister has introduced be redirected, if necessary, to ensure the maximum benefit for those who depend on the farm for their income?

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

The Minister talked about acting in conjunction with his EU counterparts. Previously in this Chamber, he expressed what I would call hope that there will be some joint action on fertilisers. Is he happy with the EU’s response on fertilisers? Did he advocate something greater than that which the EU ultimately decided to do or, rather, not do?

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

To respond to Deputy McNamara’s question, I have been advocating for the anti-dumping tariff to be removed. That has not happened at EU level. It is a small proportion of the very high cost of fertiliser at the moment but it would have been a help nonetheless. I am disappointed that did not progress at EU level.

I know Kildare, where Deputy Durkan comes from, has a great tillage sector and it is one we want to continue to support. On the pressures in the year ahead and risks around cost, I foresee that the risks will be similar to what they were this year. We do not know how matters will evolve. We do not know if the pressures will be the same but it is a volatile time and we have to be prepared and try to support farm families through the next year. That is why we have made a forward payment on the fodder scheme and will run the tillage scheme again next year. It provides a €400 payment for each extra hectare grown next year, as well as a €200 maintenance payment for each extra hectare grown this year. The multi-species sward grant will be in place next year and, for the first time ever, there will be a liming grant to support farmers to reduce their costs, become more productive and reduce emissions. We have this suite of measures in place and the energy support scheme is also available to farmers to insulate them from the pressures in the year ahead.