Seanad debates

Thursday, 24 March 2022

Nithe i dtosach suíonna - Commencement Matters

Agriculture Schemes

10:30 am

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

I thank the Senator for putting the matter on the agenda. I join with him to utterly condemn the illegal invasion of Ukraine and impact that has on the people who are displaced and the unacceptable humanitarian situation that has evolved there. As a Government and as a people, we remain resolute in our solidarity and support for Ukraine and we reiterate the call on Russia to cease all hostilities immediately and to withdraw from Ukraine unconditionally.

At a time when tractors are in the fields, lambs are being born, cows and calves are heading for grass in Ireland, our farming brothers and sisters in Ukraine are taking up arms to fight for their country's freedom. The Government continues to monitor the ongoing situation caused by Russia's illegal and immoral war on Ukraine, and Ireland's co-ordinated humanitarian, economic and diplomatic response to the crisis.

As Minister, I have raised the challenge facing our farm families at national level and European level consistently in recent months. We have listened to farmers and we have acted to support them as best as possible. We all know that the crisis in Ukraine has had an impact on Irish agriculture and supply chains. Every sector is being impacted by the rising costs but farmers are especially feeling the pressure at present. The price of energy, animal feeds, fertiliser, fuel, silage plastics and other farm inputs have all increased. From a trip to the diesel pump or to the local store for fertiliser or feed, we are seeing the reality of the impact on supply chains. For many farmers, the energy cost has gone up by between 80% and 100% in the past year. We have a high reliance on imported feed with more than 60% of feed used on Irish farms imported. Approximately 30% of world wheat and maize exports originate from Russia and Ukraine. In the past year the price of key ingredients used to manufacture animal feed has doubled.

Then we have the challenge of fertiliser, which is particularly acute. As the Senator will be aware, all the chemical fertiliser used on Irish farms is imported and 20% of these imports originate in Russia. The cost of fertiliser for farmers has more than doubled this year compared to last year, and has increased further in recent weeks. Given the seriousness and urgency of the situation, I have put in place a rapid response team chaired by the Secretary General in my Department, Mr. Brendan Gleeson, to actively monitor the impacts on agrifood supply chains, to design appropriate mitigation measures and to contribute to the whole-of-government response to the crisis.

I also quickly established the national fodder and food security committee to examine how best to advise the sector to manage the disruptions. This committee, under the chairmanship of Mr. Mike Magan, is doing excellent work and I will continue to support it. Separately, and continuing with the necessity to act quickly to support farm families, I announced a €12 million package to support the growing of additional tillage and protein crops and to support the establishment of multispecies swards, as outlined by the Senator. These targeted measures will help build resilience against the expected impact of the situation in Ukraine. This three-pronged approach will contribute towards the expected deficit in tillage and protein crops. It will also assist farmers to deal with the challenges related to both the availability and price of animal feed and fertilisers. The total package is projected to cost just over €12 million, with €10 million for a tillage incentive scheme and €1.2 million to guarantee a payment of €400 per hectare for protein crops and an additional €1 million for a multispecies sward scheme. We are now finalising the finer details of the package of measures. We have a short window to make use of these important measures. I know all farmers have listened to the signals that, if they can plant more grains I will back them and support them. The €400 per hectare will be available for all additional areas planted this year. I also continue to engage with our European partners to respond in a comprehensive and flexible manner, using all of the tools at our disposal.

It is a period and challenge like no other in our lifetime. War has visited the Continent of Europe for the first time in more than two generations and it is having an impact on everyone in every aspect of their lives. We think about the people of Ukraine. We think about those who have been forced to either flee their homes or take up arms to defend their country. At home and on farms, I know our farm families stand in solidarity with their farming counterparts in Ukraine.

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