Robert O'Donoghue (Dublin Fingal West, Labour)
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2. To ask the Minister for Agriculture, Food and the Marine if the Government acknowledges the significant increase in production costs for farmers in recent years, which many can no longer sustain; and how he plans to address the challenges posed by increasing energy, labour and environmental-compliance costs to ensure the long-term sustainability of the Irish farming sector. [14131/25]

Robert O'Donoghue (Dublin Fingal West, Labour)
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The increase in food production costs in recent years means many farmers no longer find it sustainable. As their costs directly affect consumers, we must tackle this. Dairy farmers report a near 20% rise in production costs in the past year alone. We need to address challenges posed by increasing labour, energy and environmental-compliance costs to ensure the viability of the farming sector, especially in my area of Dublin Fingal West where horticultural producers are under intense pressure from retailers on price.

Martin Heydon (Kildare South, Fine Gael)
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I start my first Oral Questions as Minister for Agriculture, Food and Marine by wishing Deputy O'Donoghue well in his role as agriculture spokesperson for Labour and Deputy Kenny as agriculture spokesperson for Sinn Féin. Deputy Mac Lochlainn, who has left because he has an engagement, and the Minister of State, Deputy Dooley, will work on all things to do with fisheries. We look forward to having a constructive relationship, with them holding us to account and us doing our best. We will debate the issues that matter for the betterment of the farming and agriculture sector in this country, which is so important.

I thank Deputy O'Donoghue for his question. The economic sustainability of family farms is a key priority for me and for the Government. Sustainability is a three-legged stool, involving environment, economic and social aspects. If any of those is out of balance, the stool falls over. The economic stability is just as important to keep all three in balance. My Department closely monitors the trends in agriculture costs and prices, with the Central Statistics Office producing agricultural input and output price indices on a monthly basis.

Arising from geopolitical events, the economy generally has experienced significant price inflation in recent years, including inflation fuelled by supply chain disruption and rising energy costs. Agriculture was not immune from this inflation and, as a result, the agricultural input index peaked in November of 2022. It should be noted that costs have decreased by about 20% since their peak, but I absolutely acknowledge that that peak was very high as a result of Russia's illegal invasion of Ukraine and the knock-on implications relating thereto. I acknowledge that they remain relatively high.

Robert O'Donoghue (Dublin Fingal West, Labour)
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The geopolitical circumstances that have occurred to date make food security all the more important. In my constituency of Dublin Fingal West, horticulture is a crucial part of the farming sector. We produce 15% of potatoes nationally, 47% of field vegetables and 37% of fruits, vegetables and nursery plants, making it one of the most important counties in the country for food production. Many farms in Dublin Fingal West supply fresh produce to local markets, supermarkets and for export, contributing to employment and our overall GDP. It plays a significant role in food production. Like all farmers nationally, they want actions to address barriers for farmers, particularly the next generation of farmers who are just as important. Farmers are caught in the crossfire of trying to make a living, trying to do the right thing to ensure the grants are-----

Verona Murphy (Wexford, Independent)
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I thank the Deputy. He can come back in.

Martin Heydon (Kildare South, Fine Gael)
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As the Deputy outlined, volatility is a significant issue. The volatility in input and output costs was reflected in family farm income. Following record years for income in 2021 and 2022, incomes fell in 2023. However, estimates for 2024 and the forecast for 2025 are more positive. Teagasc estimates an average increase of 49% for 2024 - admittedly from a low base - with all sectors estimated to have experienced gains. In 2025, average family farm income is forecast to rise by a further 22%.

I will continue to support farmers through the €9.8 billion CAP strategic plan and via specific supports where required. One of the four missions of Food Vision 2030, our stakeholder-led strategy for the agrifood sector, is for viable and resilient primary producers with enhanced well-being. This places primary producers, our farmers, fishers and foresters, at the core of that strategy.

Robert O'Donoghue (Dublin Fingal West, Labour)
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I attended the Social Justice Ireland presentation in the audiovisual room earlier. The statistics presented are increasingly concerning for the agriculture sector. The average farm income was just under €20,000 in 2023. Some 68% of farms earned less than €30,000 per annum. This data highlights clear challenges. It is clear that farming by itself is not enough to provide an adequate income. I am committed to these farmers and to working with the Ministers to make sure the challenges posed by increasing energy, labour and environmental-compliance costs can be overcome to ensure long-term stability for Irish farming.

Martin Heydon (Kildare South, Fine Gael)
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The points raised by Deputy O'Donoghue illustrate some of the other challenges we face in this sector. At its heart is the challenge relating to succession. Income is also a key issue - the income the next generation of young male and female farmers can expect to attain. It feeds into their decision as to whether they want to take on the farm or not. That is why Food Vision 2030, our overall guiding stakeholder-led strategy, is focused on: improving the competitiveness and productivity of primary producers; increasing the creation of value and distributing it fairly; introducing greater diversification in production systems and incomes; and improving the social sustainability of primary producers across areas such as generational renewal, gender balance, health and safety, mental health and well-being, and wider rural development.

All of us on the ministerial team in the Department of Agriculture, Food and Marine will continue to engage with our stakeholders to ensure the long-term economic, environmental and social sustainability of the sector.