Seanad debates

Wednesday, 18 April 2018

10:30 am

Photo of Jennifer Murnane O'ConnorJennifer Murnane O'Connor (Fianna Fail) | Oireachtas source

I second Senator Daly's motion. It is very important.

I thank the Minister of State for coming into the House tonight because we have a crisis and farmers are facing a double whammy from weather woes, as costs surge due to fodder bills, while milk collections slump. Demand has been reported as strong among dairy and dry stock farmers for the thousands of tonnes of hay, haylage and maize that has been imported recently. Fianna Fáil is calling for the hardship fund and meal voucher schemes and that is crucial. Farming is the backbone of Irish society. There are farmers selling their animals to feed what remains on the farm. Dairy bosses have warned that further milk price cuts are inevitable due to weakening global demand. Meanwhile, Teagasc estimates put the reduced profitability for each day that cows are not grazing at between €2.20 and €3 per cow. That needs to be looked at. Since November 2017, Fianna Fáil has been calling on the Minister to address the deepening crisis and implement a fodder scheme to establish a fund for affected farmers. The response from the Minister of State was that Teagasc assessed the fodder supply in Ireland and that 2017 was, in fact, a record year for grass growth and that there was sufficient fodder in the country. That worries me now because I need to know whether the Minister of State is listening to the farmers on the ground who are out digging the soil and doing the work for the Irish people. That needs to be addressed.

The agrifood sector in Ireland in 2017 showed an increase in exports of 13% to €13.5 billion. When employment inputs, processing and marketing are included, the agrifood sector accounts for almost 10% of employment. The agrifood sector is one of Ireland's most important indigenous manufacturing sectors, accounting for employment of approximately 167,500 people. It includes almost 700 food and drink firms that export food and seafood to more than 180 countries worldwide. Economic activity in the agriculture and food sector produces a far bigger return than the equivalent activity in other trade sectors of the economy. That is because agrifood companies source 74% of raw materials and services from Irish suppliers, compared with 43% from all manufacturing companies.

At the annual general meeting of the Irish Farmers Association, IFA, the Minister outlined that the previous scheme, that is, the €150 million agriculture cashflow support loan scheme was a success and that the Department of Agriculture, Food and the Marine intended to build on that. In conjunction with the Department of Business, Enterprise and Innovation, the Department of Agriculture, Food and the Marine has put together a new €300 million loan fund, of which 40% was ring-fenced for the agrifood, small medium enterprise, SME, sector. I seek clarification from the Minister of State as to how much of that funding is to go ahead because I have heard different stories. The Minister of State should confirm that 40% will be ring-fenced for the agrifood SMEs. In light of the current crisis, this needs to be implemented as soon as possible. Funding is crucial because farmers are asking why low-cost loans in Ireland are made available at interest rates that are still well above those being charged by mainland European banks on their farm loans. I agree with my colleague, Senator Paul Daly. We need to have a hardship fund. That is crucial.

The ongoing fodder crisis is particularly severe for suckler and sheep farmers who do not have a monthly cheque coming in and whose farming enterprise do not sell stock at this time of year. Cashflow is a significant issue for suckler and sheep farmers and with virtually no fodder left to move around the country, meal vouchers to supplement fodder are now essential to alleviate the hardship. The farmers have been arguing that meal vouchers were an essential component to fend off this crisis since last December. The Minister of State has been aware of this crisis last December and it is now the middle of April. We now have what I can never remember, namely, a farming crisis. Farmers are proud, hardworking people and we in Fianna Fáil are fighting for their rights. I acknowledge that emergency assistance is available to farmers whose animals are experiencing serious welfare issues and to farmers who are unable to cope with the situation. I urge all farmers to use this facility, which was set up precisely for the conditions farmers are now experiencing. I am very disappointed that we are in this position today. There is always the good news, in that we believe beef will be exported to China. All these things are welcome and we get all these good announcements but the reason I am here today is to ask the Minister of State to listen to the farmers because at the end of the day, they are the backbone of the country. It was the farmers who have taken us out of recession. Ireland is known for its farming and green grass. If the Minister of State does not listen to the farmers we are on a road to nowhere. I have seconded this motion and I hope the Minister of State will support it because this is what the farmers are looking for. I will be very disappointed if Fine Gael do not stand up and fight for the farmers.

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