Robert O'Donoghue (Dublin Fingal West, Labour)
Link to this: Individually | In context

75. To ask the Minister for Agriculture, Food and the Marine how he proposes to increase the tillage area, as outlined as a key desire in the programme for Government; when a tillage incentive scheme will be introduced to support tillage growers; and if he will make a statement on the matter. [36299/25]

Martin Heydon (Kildare South, Fine Gael)
Link to this: Individually | In context

I thank the Deputy for raising this important issue. The tillage sector is an integral part of Irish farming and makes a really significant contribution to overall agricultural output. This Government recognises the importance of the sector and wants to grow the area under tillage crops in the years ahead.

The report of the Food Vision 2030 tillage group, which was set up to set out a roadmap for the growth and development of the sector, identifies opportunities to grow the sector and to further improve its environmental footprint. My Department continues to engage with stakeholders to progress the actions in the report through collaboration with all stakeholders.

My Department has provided significant support to tillage farmers in recent years. The budget for protein aid has increased to €10 million annually since 2024. Applications for over 66,000 hectares of cereals and oilseed rape straw were submitted for chopping and incorporating in 2025 under the straw incorporation measure. I have committed to paying all farmers who have applied under the scheme. I have made this decision early to give certainty to farmers while also giving them an economic boost.

In financial terms, €10 million per year was budgeted for straw incorporation as part of the CAP strategic plan, CSP, but the applications this year amount to over €15 million. It is not an insignificant decision for me to make in regard to managing my budget, but I wanted to do it to be able to provide that certainty and support. I am a major supporter of straw incorporation. I believe it does great work and provides a number of great benefits to our farmers.

In February this year, I announced €32.4 million of payments under the tillage and horticulture support scheme, which was the Government’s response to the difficult position tillage and horticultural farmers found themselves in due to exceptionally poor weather and continued high input costs last spring. This exceeds the €30 million provided for in last year's budget. I had to try to find extra money within my budget and made that decision to prioritise because I was anxious that we be able to make the payment on every hectare of eligible ground. The extra €2.5 million was part of that.

George Lawlor (Wexford, Labour)
Link to this: Individually | In context

I thank the Minister and acknowledge his response. As he knows, tillage is a vital part of our food security. Given what is happening globally and the uncertainty that prevails, a reliable and viable tillage sector is required to ensure a food supply. It is also important to speak to the fact that tillage is effectively a carbon-neutral, if not better, area of agriculture and, as such, can play an important role in reducing the carbon footprint of the agriculture sector, if fully supported. In June 2023, the then Minister for agriculture committed to achieving the target of increasing the tillage area to 400,000 ha by 2030. However, figures from the industry at that time suggested that the tillage area was set to decline. In 2012, an estimated 355,000 ha of land in the country were under tillage but by 2024, that had dropped to 334,000 ha. Tillage plays a vital role in the agricultural economy, particularly in the context of food sustainability. It is essential that we increase the tillage area as a matter of urgency because we cannot depend, as we have already seen, on others due to the global uncertainty that prevails at this time.

Martin Heydon (Kildare South, Fine Gael)
Link to this: Individually | In context

I concur and agree with the Deputy that we want to see growth in the tillage sector. After two really hard years, I am very heartened to see a slight increase on last year in the area under arable and tillage crops. In the face of two horrendous years, it has stabilised. This year is difficult. Futures prices for the sector are still very challenging. It is the one sector of agriculture that has not seen a big uplift in commodity prices. At the same time, the crops are looking good. We have had a good year as regards weather. The winter crops in particular are looking very clean and full. We are very hopeful for a good harvest. Spring crops are obviously always somewhat more variable but a lot more winter crops were sowed in the back end of last year because of the weather. We will keep a very close eye on it from that perspective.

The tillage sector is supported under other schemes, including the tillage capital investment scheme, the organic farming scheme and ACRES. There are many farmers who are glad to be in ACRES this time. The water quality European Innovation Partnership, EIP, is also open to them. There is, therefore, a range of measures to support our tillage sector.

George Lawlor (Wexford, Labour)
Link to this: Individually | In context

I acknowledge that we may have a better year this year but the tillage sector has suffered crippling losses over recent years. We have seen fertiliser prices increase by up to 300% since the war in Ukraine began. We have seen tillage farm incomes plummet. In 2022, the average tillage farm income was €76,600. In 2024, it had plummeted to €30,000. Tillage farmers cannot take any more of these losses. They need assistance and assurance. Counties like my own county of Wexford are taking a serious hit. The IFA tells us that the economic viability of the sector is very precarious for 2025 and that the sector will be extremely vulnerable in the coming years. Forward barley prices for harvest in 2025 are €185 per tonne. This is well below the cost of production for many farmers. It is unsustainable and the sector must be supported if we are to see people remain in it and see incomes rise. It is vital that the sector receive the absolute commitment and support of the Minister. I acknowledge that, in his contribution, the Minister said he is supportive of the sector but it is crucial that a new tillage incentive scheme is introduced to support tillage growers and that we begin to be more self-sufficient when it comes to the supply of our own native grain.

Martin Heydon (Kildare South, Fine Gael)
Link to this: Individually | In context

At the end of the day, we continue to have those supports in place. There is strong co-operation, €10 million for the protein aid scheme and the allocation of money for the intervention earlier this year. While that was to recognise last year's hardship, it came out of the budget for this year, which I have to manage for tillage and all other sectors. I will continue to work with the sector. I absolutely recognise the challenges. The latest Teagasc income figure is €38,000. When you consider input costs relating to the long-term leasing of land and the price farmers are paying in that regard if they are farming more than their own land, the input costs of machinery, depreciation and the very high cost of replacing machinery, and all of the other input costs, you will see that the risk-reward ratio in respect of that investment is very challenging. That is why I will continue to work with the tillage sector, provide targeted support given the importance of the sector within the wider agriculture industry and deliver on the commitment in the programme for Government to invest significantly in the tillage sector over the next five years.