Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

Yesterday, Professor Gerry Boyle, the director of Teagasc, addressed the Fine Gael agricultural group. I will have him in again many times in the coming months. Deputy Billy Kelleher made some good suggestions yesterday on how we could lengthen the grazing season this year by spreading fertiliser. We are taking all those concerns on board and are examining those constructive suggestions. As a priority, Teagasc will continue to be focused on working with farmers to ensure that we get some normality back into the grazing season and get grass growing. We must get animals off grass that needs to be set aside for silage. We are also working with co-ops to incentivise the purchase of more fertiliser than may normally be purchased at this time of year in order to get it out. Grass growth is about five weeks behind where is would normally be so we need to catch up and get late cuts of silage which farmers would not normally seek to do.

Co-ops have been making interest-free credit available to farmers for the month of May to try to encourage fertiliser purchases, which is a good example of such initiatives. Farmers' access to credit is an important issue. I have been told by those at a senior level in our banking system that banks want to lend to the farming sector. The evidence, including the figures, suggests that is so. There is, however, anecdotal evidence that some people are having difficulty with their banks, so I want to hear about that.

About 40% of Ulster Bank's loan book last year was to the farming community, which accounts for 7% of the population. Other banks, such as AIB, Bank of Ireland and Rabo, are all actively seeking to be part of the growth story of the agrifood sector by investing in farming. About half the farms in Ireland do not have any debt at all. The banking system wants to engage with this sector and if that engagement is not forthcoming from banks at a time when credit is badly needed, I want to hear about it. I will publicly take a very aggressive line with banks if that is the case, because they have given me strong commitments that they want to work with farmers and make it as easy as possible for them to get bridging finance to deal with this fodder crisis and, for some, the credit crisis. Whether that is done by short-term loans or overdraft facilities, I want farmers to test the system so that I can be sure I am being told the truth by banks which, to be fair, I suspect I am. I have seen a lot of evidence that there is money available for farmers but a proper pitch needs to made to access that funding by showing a capacity to repay.

Co-ops have also played their part in making credit available. Glanbia, which is the largest co-op, has made an extra €15 million of credit available than it would normally have made at this time of year. Dairygold has done something similar with an extra €10 million to €12 million, and the same is happening with Kerry Group, Connacht Gold and Lakeland. The smaller co-ops are also involved. There is a vested interest for co-ops in ensuring that animals are fed, milk is produced and fertiliser goes out on grass so that brakes are not put on the system due to this fodder crisis.

They are all acting proactively - certainly those to which I have spoken. Moreover, we have had this discussion with all the chief executive officers of the co-operatives. In addition, we have had this discussion with senior representatives of the banks.

As for other things the Department can do to make life a little easier for farmers, it continues to fast-track payments that are due to farmers at or around this time of year and is trying to get out such payments early. For example, 1,500 agri-environment options scheme, AEOS, payments were made in the past ten days and a further 600 payments will be made within the next week. This is a total of €3 million in AEOS payments going out, which will mean that almost all of them have been paid. Similarly, approximately €166 million in payments pertaining to the rural environment protection scheme, REPS IV, already has been paid. If I recall correctly the figures from last night, of the 30,200 farmers who remained to be paid, 29,200 have been paid. Consequently, fewer than 1,000 farmers now await money in respect of REPS IV. Again, over the past ten days, tens of millions of euro have gone out to farmers to increase cash flow, to make it easier for them to invest in both fodder and fertiliser to try to get their farming systems back to some kind of normality for this time of year. Farm payments, credit, crisis management in terms of a welfare call line and a transport subsidy all have been playing a positive role in helping farmers to get through what is a very difficult period.

The Department has also asked its inspectors to understand that many farmers are under a lot of stress at present and consequently, the inspections under way at present are taking place in a spirit of understanding and flexibility. The Department has made it clear to its inspectors that it expects them to be much more sensitive in how they deal with farmers over the next couple of weeks because of the current stress levels. However, despite the urgings of some people, I cannot simply end inspections without that having knock-on effects later on in the year with regard to the levels of inspections. Under European Union regulations, I must inspect between 4% and 5% of farms as otherwise, Ireland will be fined or will experience what are called disallowances in respect of single farm payments and payments for other schemes. I do not believe farmers would seek that because it would be necessary to take it out of the budget.

This is the crisis response that has led on from a management response that has been ongoing throughout the winter, largely through Teagasc. However, we must now plan for next winter and the real focus in the Department, as we get through this initial crisis, is to ensure we think differently about how to adapt to new weather patterns that may or may not be here to stay and about how the growth targets in Food Harvest 2020 can be achieved. These targets involve the expansion and growth of the national herd while at the same time, we have experienced a significant shortage of fodder this year. Achieving these targets will involve both research by Teagasc and a significant effort at educating farmers on some of the new things they can do. These include, for example, growing root feed crops on arable land after harvest, which many farmers would not even think about doing in normal circumstances, as well as examining ways to get late cuts of silage that farmers would not normally consider, such as putting out fertiliser late in the summer and so on. I will be proactive in trying to get out that message to the farming community over the next couple of months.

I will conclude by stating that what has happened here is a powerful and effective collective response in which public money has been used in a targeted and justified way and will continue to be used, if necessary. If I must extend the transport subsidy through the summer, it must be done as animals must be fed. If it is necessary to continue to raise the ceiling in respect of the welfare fund, that will be done. While such funds must come out of the agriculture budget, I will find a way to do it.