Charlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

It is important that we plan. One of the pluses in the real challenges we face is the timing in that we are at the start of the growing season and the breeding season. It is important that at family farm level, each farmer plans for the year ahead and for next winter to make sure that while they are planning to breed, they are also planning to feed. It is important that such a balance is struck. First and foremost, it is important that farmers grow enough grass for the year ahead but also for the winter ahead, and examine whether they can make a contribution to grain security by growing additional grain. They must plan for that now. That is the reason we have acted quickly to put plans in place and to bring everyone together to meet the challenge and to do so collaboratively. It will take us all working together to do that. The payment of €400 per hectare will be on additional grain grown, whether it is grown by a tillage farmer or somebody who was not involved previously in tillage. The bottom line is that it is an extra hectare of grain, over and above what was produced last year. If farmers did not produce anything last year, and they grow a hectare this year, they will get paid for it. If they produced a certain volume last year and they grow more this year, they will be paid for the extra volume.

Teagasc has provided economics and advice. I saw last week in the Irish Farmers' Journal, Andy Doyle, its tillage expert was looking at the economics of tillage farmers planting as they did last year. Costs have gone up but the price of grain and forward price has also gone up. The estimation is that the economics of it are similar to what they were last year, which was a good year from a tillage point of view. I accept there is more uncertainty but the economics are that it makes sense and, as things stand, there will be a similar margin to last year for existing grain. I also accept there are additional costs in trying to identify additional land to grow additional grain. That is why I moved to try to help support that sector with the €400 per hectare. There is not a cap on it. The objective is to try to ensure we get the message out to farmers that they will be supported to grow extra grain. The payment will not be made on ground that was tilled for cereal last year because I do not want a situation whereby farmers are competing for tillage ground and where a farmer who is producing more than last year will get the €400 per hectare payment and might perhaps outbid a tillage farmer that tilled land last year. We want a scheme that works and delivers on the objective of growing the area under grain and supporting farmers to do that without having unintended consequences. That is the reason and rationale for that.