Seanad debates

Wednesday, 18 April 2018

10:30 am

Photo of Andrew DoyleAndrew Doyle (Wicklow, Fine Gael) | Oireachtas source

I hope I will get through it all. I hope Senators do not mind that I waited until everybody had made their contributions before thanking them. It was a far more measured debate than we had last night in the Dáil. Many of the points which were made are very reasonable and I would like to acknowledge that at the outset. Just before I start into my script, I would like to note that Senator Ó Domhnaill is the only Member here who was on the previous committee. We talked about long-term strategy and put together a report on optimising land use potential.We also compiled a report in advance of the lifting of quotas. Our summary statement, which appeared in the RTÉ report, included the phrase "get better before you get bigger". There are salutary lessons in some of what is contained in those two reports and perhaps we could return to them. I served as Chairman of the committee but it was the members who brought the reports forward.

Being from proud farming stock that has farmed for six generations on the same high-altitude land - I was feeding my suckler cattle and sheep this morning - I am acutely aware of the challenges presented by the weather and the dramatic impact the latter can have on farming communities in particular. As we are all aware, this past year there has been exceptionally bad weather that has brought unwelcome hardship to farming families. The Minister, Deputy Creed, and I have closely monitored evolving weather events and have worked, through our Department, with Teagasc, co-ops, farming organisations and farmers to find ways to help the farming community to deal with this very challenging time.

In response to the problems experienced in the west and north west in late autumn and during the winter, the Minister and I took a number of steps to ensure the availability of fodder. Teagasc was asked to prioritise direct support for farmers at risk of not having enough fodder for the winter by providing fodder budgeting and nutritional advice throughout the winter and into the spring. The payment of farm supports to assist farmers with cashflow was prioritised. The Department has paid out over €1.6 billion to Irish farmers under Pillar 1 and Pillar 2 and will continue to make residual payments. The Minister convened a fodder group, chaired by Teagasc and consisting of all the key stakeholders, to ensure a co-ordinated approach to the issue of fodder availability in affected areas. A targeted fodder transport support measure, with an allocation of €500,000, was introduced by my Department on 29 January 2018 to provide additional assistance to livestock farmers in the west and north west who were severely affected by ongoing fodder shortages.

Throughout this challenging time, my Department’s animal welfare helpline, which is run by a dedicated team, has been continuously available to offer assistance to any farmer experiencing animal welfare issues, including the provision of essential feed so that no farm animal need suffer due to hunger.

As we know, the continuation of unseasonably cold weather during March delayed the onset of spring, inhibited grass growth and resulted in livestock having to be housed for longer than usual. As a result, the fodder problem became more widespread and extended to the more heavily stocked regions of the south and east. In response, Department officials arranged meetings with Teagasc and industry representatives on 29 March and 4 April to assess the extent of the problem and identify what further action might be taken. Teagasc established a register of fodder to identify suppliers and buyers of fodder locally in order to free up any surplus supplies. A decision was taken at ministerial level to extend the fodder transport measure to all counties and to introduce a fodder import support measure, with an allocation of €1.5 million, to ensure that there was sufficient fodder available to feed the national herd.

The fodder import measure was introduced on 5 April to reduce the cost to farmers of imported forage from outside the island of Ireland and will run until 30 April. This measure, which is being operated through the co-ops and other approved importers, is helping livestock farmers to access fodder from abroad without having to contend in full with the substantially increased cost of transport. The measure will support the importation of approximately 20,000 tons of fodder into the country, if required, and will be kept under review until the current crisis is over.

In addressing the problem of fodder shortage, a comprehensive approach has been taken and all avenues have been explored. For example, following engagement between my Department and the Department of Transport, Tourism and Sport, the Road Safely Authority of Ireland has agreed to greater operational flexibility for road hauliers engaged in the transport of fodder and feed because of increased demand. The GLAS traditional hay meadow grazing date has been extended to 1 May next. This releases an additional 27,000 ha of land that would otherwise not have been available to be used for grazing livestock. The closing date for nitrates derogation applications has been extended to 30 April. This will ensure that agricultural advisers have more time to assist farmers in planning how to cope with current difficulties until grass growth resumes and ground conditions improve.

Planning in respect of balancing payments under certain Pillar 2 schemes is under way with a view to commencement of balancing payments, including the sheep welfare scheme in the coming weeks followed by the GLAS scheme in mid-May. The animal welfare helpline continues to be available to farmers. A small number of inquiries has been received and the Department's local offices will arrange assistance where needed.

The Minister and I are very conscious of the fact that this prolonged winter has put some individual farmers under pressure in terms of cashflow. In recognition of this, the Minister invited the CEOs of the main banks to meet him to discuss the current cashflow and liquidity position of the primary sector. He emphasised at those meetings that the banks should recognise the temporary nature of the current situation and that they should be flexible and put in place measures to support their farming customers. The banks replied that, while there are no signs that there is a liquidity issue across the sector as a whole, there may be pressure in individual cases. These banks have also assured him, and stated publicly, that they are monitoring the current situation and that they have alerted front-line staff to be supportive in any cases where difficulties arise. They have also stated that measures such as extended overdraft facilities and term loans will be made available to their customers.

The farming sector is very close to my heart and I know that all farmers understand that severe weather events come with the territory. However, I am strongly committed to supporting farmers in managing as much risk as possible. In addition, we will need to consider selecting risk management tools within a future CAP. I facilitated three CAP regional discussion meetings and in each instance where this was mooted as a provision under the next rural development programme, RDP, the general feedback was that farmers knew what they were getting from Pillar 1 and did not want anything taken from it. This may be revisited and we should take it on board. To date, such tools, which include mutual funds, insurance schemes and income stability tools, have been optional for member states to take up and Ireland, like some other member states, has not taken them up.

It is well known that Ireland has a natural competitive advantage in sustainable livestock production, particularly dairy, beef and sheep farming, based on a grass-based production system which is both relatively low-cost and carbon-efficient. Food Wise 2025, the shared strategy for the development of the sector, emphasises the opportunities to grow the value of farm output and value added and agrifood exports in response to growing demand, particularly from new markets. It emphasises, however, that this growth must be managed in an environmentally sustainable manner. Ireland is a world leader in sustainable food production and animal welfare. I have no doubt that this most recent challenge to the primary production sector will be one we will successfully overcome and that we will continue to meet our targets under Food Wise 2025. I agree, nevertheless, that the model on which it is based needs to be looked at and amended.

The desirability of Irish agrifood products in the most discerning of world markets was brought home to me this week when the Minister announced the opening of the Chinese market to Irish beef. The opening of this lucrative market presents an outstanding opportunity for the Irish beef sector, from farmers through to processors, in line with the market development theme of our Food Wise 2025 strategy. This decision by the Chinese authorities represents a powerful endorsement of Ireland’s superior standards by the Chinese Administration, for which food safety is a prerequisite for trade. The anticipated extra demand for beef will help our primary producers considerably and follow on from the success of our dairy sector in exports to China, where growth has been dramatic.Live exports also play an important role in stimulating price competition for domestic cattle and providing an alternative market for farmers. Last year, my Department reduced the veterinary inspection fee payable on live exports of calves under three months of age to €1.20 per animal from €4.80, which is one quarter of the previous price. This gave an important boost to trade and brought greater equity in the fees payable for calves, weanlings and adult cattle. Exports of calves rose by 20% to just over 100,000 in 2017 compared with 2016.

I emphasise these positive developments simply to highlight that despite the latest weather events, the overall story is extremely positive. There is huge potential for the growth of our exports to bring about buoyancy in the sector. I have every confidence that our robust farming sector will recover from this latest challenge. As we finally navigate our way to the other side of this really difficult period, it is an absolute priority to ensure that in future years we conserve enough fodder to deal with whatever winters come at us. Teagasc has been asked to make this a matter of priority throughout its advisory campaign in the months ahead. My Department will also continue to operate its early warning system whereby emergency assistance may be provided to farmers whose animals are experiencing serious welfare issues with which those farmers are unable to cope. I am confident that the actions outlined above will ensure that farmers can successfully plan more effectively for winters such as the one we have just witnessed.

To pay out the schemes, inspections are necessary. Bord Bia quality assurance inspections can be deferred quite easily. In other cases where there is an issue, farmers should contact their regional office to request some leeway. It is important that inspections continue, however, to allow payments to proceed at the end of the month for sheep and in mid-May for GLAS.

We must look at the whole model. I do not necessarily agree that we are overstocked. The nitrates directive and other environmental measures will ensure we are not overly stocked. If dairying is going to be the main driver, however, we have to look at a model which considers dry-stock and arable farmers as part of that whole industry and not as separate silos. In other words, if farmers are going to increase stock, they will have to make provision. I note that there are 365,000 more cattle since the last fodder shortage. The Teagasc advisory service will consider tweaking the model so that land on which milk can be produced is looked at in the context that not every winter will be 12 to 15 weeks. There is a saying where I come from that one should have enough hay until 10 May. It is slightly different. However, I did not follow that advice myself this year and actually sold some fodder earlier on. We have to look at the model. We have learned a salutary lesson that one can take nothing for granted when it comes to the weather. We must bear that in mind when we plan for the future. We can still meet all of the challenges with a proper land-use policy and joined-up thinking across all sectors.

I thank the Members for the debate. I note that in 1985 and 1986 we had two very difficult harvests and there were tragic stories. Combines got stuck and farmers took drastic measures. In May 1986, I had a large number of sheep and was buying nuts until the end of May to keep my lambs' mothers fed. There was no mention or expectation of support or schemes and one just had to get on with it. During those very challenging harvests in 1985 and 1986, even the quality of brewers' grain and milling wheat was undermined, in particular in the second year. We have been here before. I am not saying I disagree that there are climate change trends, but we should look at the long picture going back to learn how we should go forward. It is something we should bear in mind as we look not only at the last six or seven months, but also at the future.

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