John Carty (Fianna Fail)

I, too, welcome the Minister of State, Deputy Sargent, back to the Seanad. He has been here on many occasions and has made major contributions. It is obvious that he has put a great deal of research into his speech today, and he is always positive, which we need to be at present, in dealing with agriculture.

I value the opportunity to make a contribution to a debate on a sector which is worth in excess of €8 billion annually and supports thousands of jobs. Before making my main contribution, I pay tribute to the many unfortunate farming families that have been severely affected by the recent flooding. Coming on top of an already severe year, the catastrophe of the flooding has been a traumatic occurrence. I commend the farming community across the country for coming to the aid of farmers affected, in supplying them with fodder. It was good to see that the spirit of communities working closely together is still alive and well.

In this regard I welcome the €2 million targeted fodder aid scheme, which was quickly put in place by the Government and the Minister for Agriculture, Fisheries and Foods, Deputy Brendan Smith. I would encourage all farmers who believe they are eligible to ensure they apply under the scheme before the closing date, this Friday, 11 December. It is important that they get their applications in. All of us in the Seanad are acutely aware that this has been a very challenging year for agriculture. A series of factors have combined to put severe pressure on incomes, most notably, low commodity prices and difficulties with sterling as well as weakened domestic and international demand. Some 90% of the beef industry produce, alone, has to be exported and as the Minister of State rightly said, we are very dependent on exports. Given the state of the world economy, consumption is down across Europe and in Ireland. Hopefully, people will come back to buying beef and be prepared to pay a reasonable price for it. If not, many of our beef farmers will go out of production and this will give rise to a shortage of food. As the Minister of State said, as we approach 2020 we shall have to produce much more food for the markets available, probably on less land. It is important to emphasise that fact, and I am delighted he did so.

The dairy sector, in particular, has had a tough year, as has been acknowledged by the Minister, Deputy Smith. He has had some notable success at EU level in pushing market support measures. I remain optimistic about the future of farming and the agrifood sector, notwithstanding the serious difficulties currently being faced. A cornerstone to ensure that the sector is well placed to develop into the future is the Agri Vision 2020 strategy, which has the potential to be an exciting blueprint to take it forward well into the 21st century. The Minister is strongly committed to the strategy and I look forward to the development of an initiative that will be a real milestone for agriculture and the agrifood sector.

Few here need convincing about the importance of CAP to our farmers. The debate is well under way about the post-2013 situation and the implications it will have for Ireland. At this stage I have no reason to believe the outcome will not be positive for this country. Likewise, the abolition of milk quotas in 2015 holds great opportunity for our dairy farmers. In this regard, however, it is vital that the industry focuses now on dealing with the challenges as well as the opportunities that milk quota abolition will bring. Whatever about the future, of immediate and critical importance is the need to assist farmers with cash flow difficulties as much as possible. The Minister, Deputy Smith, has had much success in this regard in recent times, as has the Minister of State, Deputy Sargent, and I acknowledge it in this House. The Minister's efforts have borne fruit through the early advance of the single farm payment, which has been allocated since 16 October. A full 70% of the amount due has now been paid to more than 122,000 farmers at a cost of €850 million. These payments, a full six weeks earlier than provided for under the rules of the scheme, have been of enormous relief to the sector. Balancing payments were issued last week worth in excess of €380 million. In total, more than €1.2 billion has now been paid out to more than 122,000 farming families throughout the State.

I was delighted to note in the Minister of State's speech that, as a result of the establishment of NAMA he is in consultation with the banks. As my colleague, Senator Bradford, has said, the banks will have to do better to ensure that stocking loans and the different types of loans farmers need, to keep going, are made available. The banks must come to their aid and help them in every way possible, not put obstacles in their way, as has been happening. I am confident the Minister of State and the other Ministers at the Department of Agriculture, Fisheries and Food will keep pressure on the banks to do that. It is important and I am delighted he alluded to this in his speech.

The Minister, Deputy Smith, is also bringing forward a Supplementary Estimate of €85 million which will go, directly, into the pockets of farmers. These moneys will allow payments due under the REPS and the farm waste management scheme next year to be paid before Christmas. Expenditure on REPS this year will reach a record €369 million, paid to a record number of 62,000 participants. I noted in the cross-fire between the Minister of State and Senator Bradford that Deputy Sargent said more will be paid out, hopefully, next year.

From the perspective of the farm waste management scheme for 2009, €286 million will have been paid by the end of January. There is no escaping the fact that this has been a very difficult year for agriculture and the agrifood sector. However, it is a robust and resilient sector and there is every reason for us to remain optimistic about the future. As our wider economy recovers, built on the back of today's budget, I firmly believe the agrifood sector can play a major role in this recovery.