Denis O'Donovan (Fianna Fail)
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I welcome the Minister for Agriculture, Food and the Marine to the House to hear statements on the fodder crisis. He shall speak first and state his position, the main spokespersons will follow for eight minutes each and other speakers shall have five minutes. Ar aghaidh leat, an tAire.

Simon Coveney (Cork South Central, Fine Gael)
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Go raibh maith agat. I thank Members for the opportunity to attend here to deal with the issue. I wish to update the House on what the industry is doing collectively and what we, as a Department, are doing to respond to what in the past three weeks or so has turned into a fodder access crisis for many farmers.

People will be very familiar with the weather over the past 18 months. The reason we have a significant fodder shortage now is because we had no summer last year. That resulted in a poor quantity and quality of silage put in storage last winter and we knew that it would lead to problems. There has been a suggestion that we have only focused on the fodder crisis in the past three weeks but that is simply not true. We have worked with farm organisations, Teagasc, in particular, and through my Department with the farm animal welfare advisory council. We have worked with farmers and have tried to get them through what we knew would be an expensive and difficult winter. They had to supplement the roughage on their farms with extra meal in order to raise the protein levels for their cattle. People had hoped not to have to deal with a bad spring too. Regrettably, following no summer last year and an extended winter we then had no spring either. The reality is that farmers simply ran out of fodder in many parts of the country and many farmers cannot access fodder at any price. We responded to the crisis by importing very large volumes of hay, maize and some haylage to meet demand for the first time ever. The shortage primarily relates to roughage, not meal. Suppliers in Ireland have plenty of meal available. The key issue is sourcing roughage for animals.

The Department has and continues to run an animal welfare helpline that can be availed of by people or, in this case, farmers who for whatever reason cannot afford to buy or access fodder. In such cases we have encouraged farmers to contact my Department which will intervene and pay for emergency fodder to ensure that animals are fed. For the past fortnight I have repeatedly said that there is no reason for an animal to starve in Ireland as there is no limit on what we will spend to feed animals. Farmers have been under incredible stress trying to feed animals and unable to access the volumes of fodder required. In those cases I have encouraged people to telephone Lo-Call 1850 122 990 and we will help them. We have received over 500 calls so far. Over 100 of them have been extreme cases where we had to intervene directly, quickly, confidentially and sensitively using local veterinary offices. It normally costs between €200 and €1,000 to get farmers through a difficult period and getting feed delivered to their yards but we picked up the tab. That facility was available all winter and will continue through the summer and next winter.

In extreme cases farmers should not feel restricted in terms of contacting us. They will be provided with confidential assistance and help. We put the remaining 400 people in contact with co-ops, grain merchants or marts that will have fodder. We did that because some farmers have credit or available cash but do not know where to access fodder. Those initiatives are proof of a successful partnership between my Department, farming organisations, dairy co-ops, other co-ops, marts, Teagasc and private consultants who have links with district veterinary offices. We have all tried to ensure that the people in extreme distress get the help that they need quickly for their well-being and that of their animals.

A number of weeks ago we examined the possibility of giving support to encourage the importation of very large volumes of fodder because we could see the predicted shortage happening over a short period. There were calls for a €10 million fodder scheme for farmers. That would have involved putting together a complex scheme that farmers would probably not have gotten any cash out of until August, at the earliest. Every farmer would probably have applied to the scheme because everyone has been affected by the crisis to some extent. We felt that the scheme would be a waste of money. Instead, we decided to focus on the problem of getting large volumes of fodder into the country using public money to make it happen. That is why we subsidised the transport costs of importing fodder which was primarily through dairy co-ops because they cover the vast majority of the country. We are also working with some others to fill the gaps.

First, that has put pressure and an incentive on dairy co-ops to bring in large volumes of fodder while that subsidy is available because we need this to happen over a short period. Second, it has ensured that when fodder comes into the country it is affordable for farmers. For example, this has reduced the cost of accessing hay by between one third and a half, depending on transport costs, where it is coming from and who is bringing it in. That has also ensured that farmers can buy hay at normal prices, rather than at significantly higher rates which include transport costs. Much of this hay was coming from places such as Kent in England, which involved an eight-hour drive and a ferry crossing. That resulted in quite significant transport costs which we are helping to subsidise.

We focused on the nucleus of the problem, which was trying to get large volumes of fodder into farmyards at affordable prices in as short a period as possible. This is not a perfect response, far from it, but I think we have done a reasonable job. Farming organisations, co-ops and farmers themselves recognise the volumes that are coming in. As of yesterday, 730 loads of hay and maize silage had been brought into the country. To put that into perspective, that is enough to feed 2.2 million animals per day. By the end of this week there will be another 170 to 200 loads, so we are approaching 1,000 loads which is the equivalent of feed for 2.5 million animals. It is a really significant contribution over a ten-day period as our herd size is only 6.5 million.

I do not want to pretend that everything is okay because this crisis is continuing. We have a very poor weather forecast for the next few days with lots more rain. Temperatures are between nine and 14 degrees which, certainly for those farming at high altitude, will mean that grass growth will not be strong in the coming few days. We therefore need to continue to bring in large volumes of fodder and I am encouraging that.

This time last week, we extended the deadline for the fodder scheme from last Friday to this Friday. We are now saying that organisations that are bringing in fodder will be able to do so next week and the week after, but they need to tell us before tomorrow evening how much they are bringing in so that we can get a handle on the volumes. I do not want simply to extend the deadline every week and have a drip-feed of emergency hay coming in that is just about enough to meet demand and no more.

What we want instead is a very significant volume coming in over a short period that overshoots the runway in terms of the required volume. In that way, farmers can deal with this fodder shortage once and for all and put some hay, silage or maize into storage as an insurance mechanism in case we have the kind of summer we had last year. I want to keep the pressure on those importing large volumes of fodder to do so and talk to us about the volumes they are planning to introduce next week and show us proof of purchase. We will then cover them under the scheme whose delivery has essentially been extended into next week, as long as they give us a clear picture and proof of purchase before tomorrow evening.

I recognise the work that co-ops have done in this regard, including smaller ones such as Drinagh Co-op in west Cork, and larger ones such as Dairygold which has brought in nearly half of all the fodder. Others are responding in imaginative and effective ways, including Glanbia's initiative on maize. The Kerry Group, Connacht Gold, Lakeland and many others are all focused on solving this problem collectively.

I was encouraged last night that we did not divide the Dáil on this issue. Deputy Ó Cuív said he would not push the Fianna Fáil motion to a vote in recognition that this was a moment of solidarity to try to collectively solve what is a significant crisis for the farming sector and the agrifood sector generally. A collective effort is under way involving farming organisations, co-ops, Opposition spokespersons and the Government, and it is working.

The idea that Ireland would be importing grass is almost like a joke to many people in other parts of Europe. It is like the Eskimos importing snow. Many people view Ireland as a country that grows grass for fun, which is why we have a fantastic grass-based beef, dairy and lamb production system that is so effective. However, we have had to deal with extraordinary weather conditions that have resulted in a serious reality check for the farming sector. How do we ensure that this does not happen again? If we assume the worst, which is that we would get no summer again this year, as in 2012, we must plan for that and we are doing so.

Terry Leyden (Fianna Fail)
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I hope so.

Simon Coveney (Cork South Central, Fine Gael)
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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.

Fidelma Healy Eames (Fine Gael)
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Hear, hear.

Simon Coveney (Cork South Central, Fine Gael)
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The Department will not allow animals to starve and will not allow the system to collapse. However, I must adopt a targeted approach to how I spend money to ensure the Department gets full value for money for such expenditure. I cannot simply open a hugely generous scheme that gives out money to those farmers who apply for it, because I would be obliged to take that money from farmers' budgets somewhere else and I do not wish to do this unless I must. Nevertheless if I must, I will. I look forward to Members' comments and questions and will try to respond to them at the end of the debate.

Michael Mullins (Fine Gael)
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I thank the Minister. Spokespersons will have eight minutes and other speakers will have five. I will allow a facility for sharing, if that is required. I call first on Senator Ó Domhnaill, who I understand is sharing three minutes with Senator Leyden. Is that agreed? Agreed.

Brian Ó Domhnaill (Fianna Fail)
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I understand there are a number of farms in County Roscommon-----

Terry Leyden (Fianna Fail)
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There certainly are a number in distress.

Brian Ó Domhnaill (Fianna Fail)
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-----and Senator Leyden wishes to raise some of those issues.

Pat O'Neill (Fine Gael)
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There are many things in County Roscommon.

Brian Ó Domhnaill (Fianna Fail)
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There are indeed.

I welcome the Minister to the House for this debate. I note that a Private Members' motion on this issue was debated in the other House last night and the night before. It is an issue of national importance, not least because the food industry is so important to the country. Its importance also is due to the introduction of animal welfare legislation through both Houses of the Oireachtas - it is due to return to this Chamber shortly - and all Members have subscribed to that. I am sure the Minister will agree this is an animal welfare issue. I note that 26% more animals have died in the first three months of this year as a result of the lack of fodder or food and this is a national issue that requires Government intervention and attention. Whatever resources are required must be made available. This is not something that happened overnight because as the Minister correctly pointed out, there were difficulties last summer. At the back end of last year, when it was very wet, farmers experienced difficulty in saving hay and silage and as a result, the plenitude of supply that may have existed in previous years was not there. People were aware this issue would arise and we have now reached a position at which, while approaching the middle of May, there is an absolute lack of grass. Cattle are still indoors and the problem appears to be in that part of the country west of a line from Waterford to Donegal. While it may not be as prevalent in the north-west as in the southern part of the country, nevertheless significant problems also have arisen on certain farms in my native County Donegal, where lots of hay and silage has been imported, some from the North of Ireland, to deal with the problem.

This is imposing a huge financial cost on farmers. Farmers are already against the wall on foot of increases in fertiliser prices - I acknowledge it is possible that not as much fertiliser has been bought because the land is unable to take it - fuel prices and fodder prices. The fodder price may not be as high in County Donegal as it is in the Minister's native county of Cork but when Senator O'Donovan raised this issue three or four weeks ago, it was hitting €80 per bale there for a round bale of silage, which is a huge amount of money. Farmers have had their backs to the wall and anecdotally, I have met people who have told me that farmers were on the verge of suicide and that a number of them actually did commit suicide. I am aware of one or two cases in County Donegal in which this actually happened. As a result of their inability to feed their animals - they felt they could not approach the community welfare officer or anyone else to seek the money - they took their own lives. It is very sad that this happened but it is important to acknowledge today that it did happen. While no direct evidence exists to link it, anecdotally it is something I have been told. While animals have been lost, human lives also have been affected by this issue. Whatever money is required must be made available.

At present, some farmers are on the financial cusp. The farm assist scheme has been targeted in a highly detrimental fashion by the Minister for Social Protection. It is disgraceful that a small amount of money to keep people on the land has been reduced because of the 100% means testing of the scheme and I believe, even at this late stage, this should be reconsidered. I appeal to the Minister to ask the Minister for Social Protection to have a further rethink of this measure because farmers who may have been in receipt of €50, €60 or €70 per week are now receiving nothing and as a result, they are left in the position of potentially costing the State more money because they may be obliged to leave the farm and switch to unemployment benefit. In such circumstances, they might cost the State perhaps three times what they were receiving under the farm assist scheme. This makes no logical sense to the State coffers and this issue should be reconsidered.

The Minister has mentioned payment.

There are ways to deal with this and I welcome the fact the Minister has given a commitment that he will extend the fodder scheme by a week. The Minister has clarified why he said he is looking at this on a week by week basis and stated that co-operatives must have material in with the Department tomorrow evening. In addition, the DAS, AEOS and REPS payments were mentioned. Those must be issued by the Department and the appeals that have been held up in the Department must be expedited. I appeal to the Minister to look at single farm payments as well. Can a percentage of those payments due in September be paid now? For the next month there should be inspections. We will still be in compliance with the 5% figure but the inspections should take place in the other 11 months of this year. For the next month, there should be no inspections. That could be done as long as the national year end figures add up to 5%.

There will be a big problem this year where farmers must now put stock on grass. There will be a lack of silage and hay available for next winter because of the lack of grass at the moment. What steps is the Minister taking to deal with that issue?

Terry Leyden (Fianna Fail)
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The Minister is welcome to the House but he has come in three weeks too late, the horse has bolted. As the saying goes, "Live horse and get grass". This was raised three weeks ago by Senator O'Donovan and we called for the Minister's attendance but he was not available.

The Minister said he knew there would be a crisis but if that is the case, he was not very well prepared. A Fianna Fáil Government provided £12 million in 1998 for a similar crisis. The Minister should check his files and see how it was handled by the Ministers, Joe Walsh and Ned O'Keeffe. These two Cork Ministers for agriculture responded in a positive way to that crisis. We were not funded or supported by the IFA or other organisations to bail us out. We had to do it ourselves out of people's taxes. I welcome the support and assistance from the IFA and other organisations that have provided funding, it is very good of them, but they put the Minister off the line because that saved his coffers.

Simon Coveney (Cork South Central, Fine Gael)
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Does the Senator not think I had an input in those negotiations?

Terry Leyden (Fianna Fail)
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Perhaps the Minister has more of an input into the IFA than a Fianna Fáil Minister would have, that is obvious.

Simon Coveney (Cork South Central, Fine Gael)
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Clearly.

Terry Leyden (Fianna Fail)
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Well done, I thank the Minister for confirming it. The animal health and welfare telephone line has been set up and it is a great idea but why did only 500 people apply? They were reluctant to apply because the ISPCA will be involved in monitoring the farms from hereon to find out if there was neglect or an inability to deal with herds. That is a point that has been brought to my attention. If only 500 people applied out of 150,000 farmers, it is quite poor.

Simon Coveney (Cork South Central, Fine Gael)
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There is no role for the ISPCA on farms.

Terry Leyden (Fianna Fail)
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Is there not? The Minister should check it out.

Simon Coveney (Cork South Central, Fine Gael)
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We had this debate during the Animal Health and Welfare Bill. Perhaps the Senator could ask his colleague and he will inform him.

Terry Leyden (Fianna Fail)
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The Minister better check the source I have.

Michael Mullins (Fine Gael)
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The Senator's time is up.

Terry Leyden (Fianna Fail)
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In knackers' yards, 800 cattle went through in seven days. They are taking on extra men. How many cattle have died during this crisis? The Minister knows the record, he has the CMMS, he knows exactly how many cattle there are in the State. There is a case for compensation here for those who had suffered extreme losses in this crisis.

I have a lot more to say because I live on an organic farm and I compliment my neighbours and those in my area who have come to the rescue of local farmers without seeking any additional funds for their bales. The quality of the bales being brought in and the foodstuffs is very poor because of the time of the year and that has also affected losses.

Michael Comiskey (Fine Gael)
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I welcome the Minister to the House. A succession of abnormal weather patterns has resulted in the critical shortage of fodder for farms and created real hardship for rural communities. Before concerns about fodder levels had arisen, the Department was working with Teagasc, the farm animal welfare bodies to assist farmers in recovering from last year's very bad weather only to see this problem arise following a long winter and a poor spring. These challenges have placed a real burden on the farming community but the Minister and the Department have been quick to target the needs of farmers on the ground. A system of support mechanisms was encouraged and implemented quickly at many levels in response to the difficulties being faced by one of the country's most important sectors. We have seen in the last two years that farmers came out of the blocks to bring the country back to normality.

Since the level of fodder became an issue of concern, a targeted and comprehensive response was implemented by the Minister, the Department and the farming organisations, together with the private sector, to support farmers in sourcing and purchasing fodder. The transport subsidy scheme reduced the cost of importing fodder by a third. The scheme, while operated by the dairy co-ops and directly supported by the Government, offered a practical response to ease the burden upon farmers. In reacting swiftly, vital support was provided to help bring the shortages to a conclusion in the shortest time possible. The farming organisations, co-ops and feed merchants have gone to great lengths to increase their hay and silage imports and passed the benefits of the scheme to the customers. In particular, I commend Connacht Gold, which has done a lot of work in this area, and the co-ops in Killasnet and Ballinfull and Lakeland Dairies, which have all helped out. I thank the Minister and the Department for processing as a matter of urgency outstanding farm scheme payments amounting to nearly €3 million, further easing the burden on farmers created by the unprecedented weather. Receipt of these payments will help ease the burden of having to buy extra fodder.

The Minister and the Department have not limited their response to the situation to circumstances within their own control. Much work has been done liaising with the banks and co-ops, encouraging increased credit facilities and flexible loan repayments for farmers in difficulty. Many of the banks and co-ops have responded positively and should be commended for their support to their customers. Any farmers who are still in difficulty should speak to their banks and co-ops to seek assistance on any further difficulties they may have. The emergency animal scheme that was mentioned earlier and the early warning mechanism have been in place for some time, receiving 500 calls in the last few weeks. They have addressed many of the concerns about fodder by providing emergency financial assistance in a minority of cases.

The Minister has been to the fore in addressing and raising animal health and welfare issues since taking up office. The Animal Health and Welfare Bill will shortly pass all Stages. The response to the fodder problem has been entirely animal-centred. Professor Gerry Boyle from Teagasc and the farming organisations spoke to us in recent days and important meetings have been taking place locally to inform farmers. In Leitrim last night, there was an IFA meeting and the association was arranging supplies of fodder for the area in the coming days.

Similar to the economy, real and tangible green shoots are beginning to emerge. The Minister is focusing his efforts on encouraging grass growth so we can move quickly beyond the current difficulties in driving grass production. Farms will be able to provide the cheapest and most natural food source for their animals. Further supportive measures have been implemented by some co-ops. Interested parties across these sectors have shown a willingness to assist farmers in difficult circumstances.

I thank the Minister for being with us again today to debate this very important issue. I hope spring will finally arrive, the sunshine will come and the grass will grow.

Fidelma Healy Eames (Fine Gael)
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I thank Senator Comiskey for sharing two and a half minutes of his time. I thank the Minister for coming to the House. I had hoped the fodder crisis was over and that spring had sprung, but I made six calls to farmers this morning in Galway to see where they were at and the deterioration in the weather over the past 36 hours has made things very difficult yet again.

I hate to say it, but what I learned this morning is that it looks like the crisis is continuing and is worse than I thought. Exceptional circumstances are set to continue with cold weather for the next five days. The feedback I have received from Galway is that the land is so wet, farmers cannot get onto it. Four of the six farmers I spoke to asked whether the Minister could advance the disadvantaged areas scheme payment. I do not doubt the commitment of the Minister and I know he has done incredibly good work with the transport subsidy and welfare.

To counteract what Senator Leyden stated, we need the ISPCA to be very understanding in these circumstances because this is a fodder crisis. It is not about farmers not caring for their animals; it is about people not having access to fodder or cash flow. One farmer told me it is completely weather dependent. The cost of fertiliser is an issue for him and he has already spent €1,000 on it. He asked whether the Minister can intervene in the cost of fertiliser. Grass growth is at least three weeks behind what it should be in Galway. One farmer I spoke to felt the supply of fodder is not equitable, with some farmers having too much while others have none. Another farmer told me he has had to bring his cattle back in because the land is to wet, it is too cold and he is running short of feed again. He also called for the Minister to advance payments. I know the Minister is bound by EU rules but I am putting it to him.

Some farmers went to the mart yesterday and received €620 for animals for which they would have expected to receive €800 because the market is being flooded with cattle. Farmers are under pressure due to a lack of money, fodder and normal grass growth. Their cash reserves have been spent on concentrates and silage, and prices for these have soared. One farmer mentioned that his credit limit was of concern despite the Minister's feedback from the banks. We have had two bad years and it looks like only one cut of silage will be made this year, which will cause another fodder crisis next year, which is a major concern for everyone.

We need an overall plan and not a stopgap measure. I know the Minister is considering this. We must help each other. This is a crisis which is weather-based. We have global warming and changing weather patterns. How will we deal with these? I thought the crisis was over and that the situation was improving but clearly it is not. The Minister may have to consider being more flexible with regard to extending supports.

Denis O'Donovan (Fianna Fail)
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I welcome the Minister to the House. I am glad we are having this debate. I wish it had happened four weeks ago, but unfortunately the Minister was busy. In my many comments on this issue I have acknowledged it is not entirely the Minister's fault because, as he outlined, we had an appalling summer last year and a prolonged winter, but the omens were there at the beginning of March in the long-range weather forecast-----

Fidelma Healy Eames (Fine Gael)
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Senator O'Donovan cannot blame the Minister for the weather.

Denis O'Donovan (Fianna Fail)
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The long-range weather forecast indicated consistent easterly winds and low temperatures. This is one of the most serious crises which has occurred in farming in my lifetime in the area I represent from a fodder point of view. I acknowledge the work done by the IFA and local co-ops such as Drinagh Co-op and Barryroe Co-op. They must be complimented for their efforts. I have stated, and not to say it behind the Minister's back, the political response was rather tardy and reactive rather than proactive.

It amuses me sometimes to hear about support from banks. Many farmers have difficulties with banks and over the past two or three weeks I have had many calls from people not in a position to obtain financial support from banks. A widow came to my clinic in tears because some of her cattle were starving and she needed at least three or four bales of hay, but she could not access them because of a problem with her local co-op account. I thought this was most unfortunate. I rang the co-op manager to see whether she could be helped and I hope she was.

Simon Coveney (Cork South Central, Fine Gael)
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Why did the Senator not ring the Department? That is what the helpline is for.

Denis O'Donovan (Fianna Fail)
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I told her about it and gave her the details to make direct contact. I was trying to help a woman in distress. I hope these situations are in the minority.

Figures from the Department show a 26% increase in the number of animal deaths on farms in the first quarter of 2013. Some, if not all, of these were due to the fodder crisis. What we need now is the grass to grow in abundance in the coming months so we can have two, if not three, cuts of silage so the farmers' stocks can be sustained for next winter. I acknowledge the Minister's comment that if necessary he will extend transport assistance into the summer and I hope this will not be required. From my knowledge of west Cork I feel co-ops, the IFA and other farming organisations reacted to this, but it was well known in February we were facing a crisis and more could have been done.

The notion of providing €10 million or €12 million for a kitty to which everyone applies is not a great idea. I support the Minister in this regard. Last week I attended a funeral in west Cork where I spoke to several farmers who told me one or two of their neighbours had half pits of silage left and were not in crisis, but were still going to the local co-op and buying hay intended for those most in need. The distribution has not been very equitable. Perhaps the IFA, the co-ops and Teagasc could oversee it. I must be careful how I word my next point, which is that bachelor farmers are very slow to acknowledge they have a problem and very slow to come forward to ask for help. This in itself is an issue.

I have raised this issue many times on the Order of Business and called for the Minister to come to the House. He had good reasons for not being able to do so. I hope he will monitor the situation very closely in the coming weeks. When I was going through Dunmanway on Tuesday morning the temperature was 11° C at approximately 11 a.m. whereas by the time I arrived in Kildare it was 19° C. The south of Ireland has probably been hit more than anywhere else.

I must also express my deep concern for dairy farmers. As the Minister knows well, if milk output declines because of a lack of feed and bad weather it will not be restored. This is a severe concern. Perhaps, as suggested by the previous speaker, a subsidy for fertiliser could be provided to farmers. Farmers who put out fertiliser in March received no return for it because the ground was too cold, and this bag manure has probably gone to waste. Perhaps we could have an incentive to ensure farmers put out adequate fertiliser, although it is getting late, so grass will grow.

Hopefully, we can have a good summer.

I wish the Minister well with this problem, as it is not his alone – it is a national problem. I am not here to bore holes into him. Everyone should be foursquare behind the efforts and wear the green jersey, but the Minister should be acutely aware that this problem is worse than some people realise. This is why I have raised the issue in the Chamber incessantly. I have outlined my deep concerns on radio several times. I hope that whatever measures the Minister puts in place will work. If we have another bad summer, God help us next winter and spring.

Susan O'Keeffe (Labour)
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I welcome the Minister to the House. Unlike Senator O’Donovan, I am delighted in a way that the Minister has been elsewhere. Between the Common Agricultural Policy, CAP, the Common Fisheries Policy, CFP, the horsemeat crisis, the Presidency and a million other issues, I suspect the Minister has been quite busy. I was disappointed that he was unable to attend the Seanad in the middle of the horsemeat crisis, but I understand that there are moments when it is difficult to do so when there are so many balls in the air. I would rather the Minister was sorting out the situation for farmers instead of discussing how he will do so with us. Criticism of that type is unhelpful.

It is fair to say that this is more than a fodder crisis. It is a national crisis. Given the fact that the industry has exports worth €8 billion, any problem should be framed in the sense of a national crisis. I am unsure whether the public has grasped its seriousness. The idea that a gap is being filled with a few bales of hay and bags of grain does not reflect what we are facing. It is not just a question of food for animals now, but of future food security. The world’s food security and Ireland’s contribution to same is one of the issues that the Minister’s Department must grapple with in the coming five, ten and 15 years. If we must import foodstuffs, we will be on the back foot in terms of our global role.

I pay tribute to the Irish Farmers Association, IFA, the Irish Creamery Milk Suppliers' Association, ICMSA, the Irish Dairy Board and the co-ops for rallying around and recognising that this problem must be addressed. I do not want to speak any further without paying tribute to their efforts in trying to help farmers directly. The Department’s helpline is a good one, but people are reluctant to use it. I do not know how to get around that issue. Perhaps there is another way to frame the telephone line so that people can decide it is for them instead of watching their animals die. The Minister knows the figures. Animal deaths occur every year, but they have increased significantly this year. If the helpline is not helping, should we rearrange how it looks so that people can access it?

People have come forward and been of assistance in providing a stopgap measure, but the question facing the Minister is what to do in future. There is drought in New Zealand and rain in Ireland. Around the world, climate patterns are shifting year to year. Forgive me if the Minister has already done what I am about to recommend, but could he set up a climate pattern committee as a subset of the high-level implementation committee on Food Harvest 2020? The committee could include members of Met Éireann and farm advisers on the ground as opposed to the head people who must always attend these meetings. Perhaps banks should also be involved so that they can plan ahead. AIB and other banks have set €50 million aside and I applaud the fact that the Minister has urged them to keep their promise on supporting farmers with working capital and, where appropriate, restructured loans. There should be a proper committee to determine seriously how the country will cope with climate change and its knock-on effects. For example, using fertiliser in wetter climates has an effect on waterways, etc. Should the Environmental Protection Agency, EPA, and so on be involved in the committee?

The crisis has played out in slow motion since last summer and it is almost clear that there will be a crisis next year and possibly the following year. I would love to be wherever Senator O’Donovan has been hoping for a third silage cut. I suspect that many farmers would be grateful for one and will not even get near having a third cut.

Denis O'Donovan (Fianna Fail)
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One will not do.

Susan O'Keeffe (Labour)
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That is the point.

Pat O'Neill (Fine Gael)
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It will not happen.

Susan O'Keeffe (Labour)
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The Minister stated that he was looking to the future. He is probably trying to determine how to go about this. Perhaps the net should be thrown wider to include people who might not normally be consulted by his Department or associated with its work. Could the environmental pillar groups be included so that they might share their concerns about climate change, how fertiliser is used and so on? Would the EU Solidarity Fund be of any benefit?

Farmers are grateful for the acceleration in payments under the agri-environment options scheme and REPS 4. We are constantly asked about people’s payments. Some remain outstanding. Can the process be streamlined? It seems there is always a backlog.

Simon Coveney (Cork South Central, Fine Gael)
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It is primarily the case that mistakes are made by applicants. We must clarify them before we can pay.

Susan O'Keeffe (Labour)
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If that is the case-----

Simon Coveney (Cork South Central, Fine Gael)
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We are significantly ahead of any previous year in making payments.

Susan O'Keeffe (Labour)
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That is good news. When we receive calls, we try to ask people whether they have made mistakes. It is always difficult to know where the error occurs. People are desperate. I thank the Minister for the clarification.

The Minister has quite a number of challenges on his plate, but the language used to date has restricted the issue to a fodder crisis. The problem is wider than that. If we are to have a more grounded debate on how to tackle the issue, it would be a good move to join the dots and involve the wider community. Individual farmers who are under stress and trying to cope would feel that the broader community understands their position. I thank the Minister for his time.

Rónán Mullen (Independent)
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Ba mhaith liom mo chuid ama a roinnt leis an Seanadóir Ó Clochartaigh.

Paddy Burke (Fine Gael)
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An bhfuil sé sin aontaithe? Aontaithe.

Rónán Mullen (Independent)
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Ba bhreá liom fáilte a chur roimh an Aire. Tréaslaím leis as ucht an mhéid atá déanta aige. Tréaslaím freisin leis na co-ops as ucht an scéim iomportála beatha. Tá áthas orm go bhfuil íocaíocht ag teacht ón Roinn chun cabhair a thabhairt sa chomhthéacs seo.

I will tell the Minister “Well done”. There is something elemental about farming woes. Certain sectors give out about farmers and farming, but when farmers hit hard times, they receive a great deal of sympathy because people know how vulnerable farming is and how connected we all are with the land. There is a good tradition of Governments responding well in times of crisis. This crisis is no exception. I welcome what the Minister and his Department have done in supporting the co-ops’ imported fodder transport scheme.

The crisis has a number of elements. The economic impact is critical and the damage is not short-term, as it will roll on. Land that was used for next year’s silage is not available in the short term, which will have an impact on the availability of feed next year as well as the number of cattle and sheep that can be supported.

It is right that the Minister has left the transport subsidy scheme open because this situation will have to be monitored on an ongoing basis. It is not a problem that will go away as quickly as it came.

The second issue is the stress caused to farmers, which is more difficult to estimate and respond to. While I understand that farm inspections cannot be ceased, I welcome the sensitivity being shown by inspectors. It can be difficult for people in farming to speak about the stress they are under arising out of aspects of their work, in particular at a time of crisis such as this. Irish people, much more than in the past, care for the welfare of their animals and are not only measuring the economic cost of this crisis but are conscious of the animal welfare dimension also. Whatever can be done to assist farmers should be done. We cannot ignore the human cost of this crisis. It is hoped the extension of the scheme will allow farmers to consider the situation they are in and that the Department will work to ensure farmers are aware of all the supports available to them.

The third issue is, perhaps, animal welfare. Cattle fall or die for many different reasons. While I do not wish to be sensationalist, it would be helpful if the Minister could provide us with an estimate of the number of fallen animals attributable to the fodder crisis. Is a particular section within the Department dealing with this issue? I apologise if the Minister dealt with that issue during his opening speech but I was absent on other business. How will the Department be structured on an ongoing basis in terms of attention to this crisis?

It seems to me and following on from what Senator O'Keeffe said, if the current weather trend continues, an ongoing response will be required. It looks like it will not be possible to pack away the tents and that we will be dealing with these problems into the future.

Trevor Ó Clochartaigh (Sinn Fein)
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Gabhaim buíochas don Seanadóir Mullen as ucht a chuid ama a roinnt liom agus gabhaim buíochas don Aire as ucht teacht isteach. Bíonn leithscéalta ag Airí eile nach dtagann isteach, ach tá an tAire féin chomh gnóthach le hAire ar bith eile, agus is iontach an rud go dtagann sé isteach chomh minic sin.

I will try not to go over ground covered. I know, having spoken to farmers in my area, that farmers are very distressed to see their animals weak and unwell. The thought of animals dying dwells on their minds. We know that in some parts of the country collection of dead animals has increased by up to 40%. The Department of Agriculture, Food and the Marine has confirmed that deaths of cattle aged 48 months and over increased by more than 60% between January and February this year compared with January and February 2012.

There is huge concern about how families are to keep going when there are no milk cheques coming in and they are finding it difficult to get credit from co-operatives. I noted what the Minister had to say about the banks, namely, that 50% of farms are debt free.

Simon Coveney (Cork South Central, Fine Gael)
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Do not have a loan.

Trevor Ó Clochartaigh (Sinn Fein)
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The corollary then is that the other 50% do. The banks are possibly extending credit to the 50% who do not have a problem with their lending criteria. The other 50% could, if they are stretched debt-wise, be ineligible for extra support from banks. This might in part be the reason farmers are experiencing difficulty getting credit from the banks. It is an issue that needs to be looked at.

I spoke to farmers in Galway this morning. A senior representative of the IFA in Galway has asked me to relay to the Minister that the fodder situation has worsened severely over the past 36 hours and that people do not have money to buy feed. While I appreciate the introduction of the transport subsidy scheme, having the cash to buy the fodder when it arrives is another issue.

Simon Coveney (Cork South Central, Fine Gael)
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They are not being asked for cash.

Trevor Ó Clochartaigh (Sinn Fein)
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They are being asked to pay for fodder.

Simon Coveney (Cork South Central, Fine Gael)
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I will inquire about that.

Trevor Ó Clochartaigh (Sinn Fein)
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I am relaying what I am being told. Farmers are finding it very difficult to cope because they have no cheques coming in. I acknowledge the Minister's response. It is very welcome. Forward planning is crucial. The inflexibility of the institutions does not help and must be tackled. It is more than just anecdotal that there are difficulties in this area. I will take up the Minister's offer of reporting any specific cases to his attention.

I received another call in regard to advance payment of disadvantaged area schemes payments so that farmers can manage their cashflow in a better way. Farmers believe this proposal is worthy of consideration. I welcome that the Minister has indicated he will look at extending the transport subsidy scheme for as long as is necessary given prevailing weather conditions. There is a need for a review of how we ended up in this situation and for advance planning for the remainder of the year to deal with any further lack of fodder.

Táimid an-bhuíoch den Aire. Tuigim go bhfuil sé crua. I appreciate the stress this crisis has placed on the Minister and his officials. We need to learn from it and ensure we can handle what might happen in the weeks and months ahead.

Simon Coveney (Cork South Central, Fine Gael)
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I thank Senators for the tone of the discussion and their questions, which were constructive. I will try to answer some of the questions and clarify some of the points made.

On single farm payments, these are never paid in September. The single farm payment is not due until mid-December. Last year, and for three of the past five years, we have managed to get an advance on that in terms of getting half of the payment six weeks early, namely, mid-October. We will be applying for that again this year because of the cashflow issues on farms. It is not possible to get approval for payments earlier than that and we should not raise expectations in this regard. Even if we could, the Department would have to carry the cost in terms of financing payments because they do not become available until the end of the year. The Department already bridges the cost of the payments in mid-October. My Department is not a bank and cannot produce significant sums of money.

It has been suggested to me over recent weeks that every farmer would get an advance payment of €1,000. I would like to facilitate this but I do not think I can. There are 130,000 farmers in the country eligible for single farm payment. If Senators do the maths, they will see the amount we would have to seek from the Department of Public Expenditure of Reform because there is no money coming from Europe until the end of the year. The reason we have a banking system is to assist farmers get over that problem. I have had discussions with senior bank officials. The banks are willing to put in place short-term loans with low interest rates in respect of which there is no repayment requirement until single farm payments are received. The purpose of a banking system is to assist people through difficult periods in terms of credit availability, financing, bridging and so on. My Department cannot be expected to do that. Cashflow issues can be resolved by way of the credit facilities available in co-operatives and through banking facilities in place for farmers with the capacity to repay, which includes most of them.

It should not be forgotten that commodity prices this year are strong. Milk prices may reach an all-time high this year and beef prices are also strong and increasing. Store cattle are an issue currently because of the availability of grass, as indeed are store lambs. With some normalisation of weather patterns, that should resolve itself quickly. This has been a disastrous start to the year for farming, but it does not have to be a disastrous year in terms of returns because, in my view, the price of commodities will remain strong up to the end of the year. We need to plan, in the medium and long term, to manage how we get through what has been primarily a fodder crisis. I accept the point made that there are other issues linked to it. We are doing that. Just as there were officials in the Department working full-time on the horsemeat crisis, there are officials in the Department working full-time on this issue.

The idea of setting up more task forces or groups in some way misses the point, although I am not saying we should not have a group linked to the high implementation group of Food Harvest 2020. There many groups with such links. At the next high level implementation group we will have an environmental impact assessment of Food Harvest, including its effects on biodiversity, changing weather patterns, etc. A consultant has been working on that for the past six months and the report will come this month to the high level working group. The broader issues regarding the environment are being looked at in some detail, and we are required to do that with a plan of this scale.

There are issues regarding advance payments. We would normally make disadvantaged areas scheme, DAS, payments around the week of the ploughing match, which is towards the end of September. That is when we will pay them this year.

Fidelma Healy Eames (Fine Gael)
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Will the Minister look at that again?

Simon Coveney (Cork South Central, Fine Gael)
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No. There is just under €200 million in DAS payments due and if we start paying farmers in advance, we would have to consider how much to give them and who would get the advance payment. The payment will be made in September and there should be a bridging banking and credit facility available to farmers until then. I do not see why that cannot work. This is in preference to asking the Department to essentially become a banking facility. We must pay for that, and farmers will pay for it as the funding will come from the same budget. It is not like I have a lump sum that I can give out whenever I want. A significant element of DAS payments are matching funds coming from the EU. Although I can consider the issue, I do not want to raise expectations in that regard.

Fidelma Healy Eames (Fine Gael)
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I thank the Minister.

Simon Coveney (Cork South Central, Fine Gael)
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I accept that DAS payments are a matching fund so they are slightly different from the single farm payment. I have had many conversations with people in banks over the past two weeks and they all suggest there should be short and medium term credit facilities in place for most farmers. This is not about refinancing loans for machinery, buying land or renting conacre but rather dealing with a fodder problem. There are credit facilities available specifically for that problem. For example, Ulster Bank has set aside €25 million specifically for a weather or fodder fund, and it has not been drawn down. I spoke to representatives of Bank of Ireland approximately ten days ago and only about 65% of the available overdraft facilities were being drawn down by many farmers. There was a 15% increase in the number of requests for increased overdraft facilities among farmers and in the rest of the economy the figure from Bank of Ireland is 37%.

The figures suggest two points. The first is that farmers, for whatever reason, do not feel comfortable going to banks, which is a problem in itself.

Terry Leyden (Fianna Fail)
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They cannot afford to go to banks. It is not rocket science.

Paddy Burke (Fine Gael)
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The Minister, without interruption.

Terry Leyden (Fianna Fail)
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They are in trouble as it is.

Paddy Burke (Fine Gael)
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The Minister, without interruption.

Terry Leyden (Fianna Fail)
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The Minister is tempting us. He is talking about banks but he should deal with the fodder issue, for God's sake.

Simon Coveney (Cork South Central, Fine Gael)
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One must be able to buy fodder.

Terry Leyden (Fianna Fail)
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I know. We have done it.

Simon Coveney (Cork South Central, Fine Gael)
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All the conversations we have had indicate this is not primarily a credit crisis but rather a fodder crisis. If the Senator spoke to a few more farmers, he would probably understand that.

Terry Leyden (Fianna Fail)
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I am living on a farm.

Simon Coveney (Cork South Central, Fine Gael)
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Perhaps the Senator should speak to some neighbours. We are trying to solve the nub of the problem, which is getting fodder into Ireland, regardless of whether farms have money. If fodder is unavailable to buy, it cannot be procured at any price, which is the centre of the immediate crisis that must be solved. If farmers cannot afford to buy the fodder, we will intervene and buy it for them. We have made that very clear and we are doing it on a daily and confidential basis with farmers. Lack of credit should not prevent animals being fed, and I encourage farmers to talk to us if credit is a big problem in getting them through a difficult period.

People have raised the matter of animal deaths. In the first three months of the year there was no fodder access crisis, although there was a fodder quality issue throughout the winter because some farmers had poor fodder. Animals were not starving, and it was not the reason many animals lost their lives in the first three months of the year. The mortality rate was similar to 2009, with approximately 106,000 deaths on farms for the first three months of the year. In 2009, the figure was approximately 100,000. This is a bad year for animal mortality on farms but it is not a massive outlier either. One of the reasons there has been a significant increase in mortality this year is the very unusual weather in winter and poor quality fodder, although there was enough volume. Nutrition in herds was not as good as it should have been and the unusual weather patterns made it easier for disease to spread. There was also an increase in calving by approximately 3.5%, and much mortality occurs during calving. That also explains some of the increased figures.

By the start of May - a few days ago - the figure for this year was at 143,000 animal deaths on Irish farms.

Terry Leyden (Fianna Fail)
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That is a lot of cattle.

Simon Coveney (Cork South Central, Fine Gael)
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Last year the figure was 117,000 for the same period. There has been a significant increase from last year but if we consider 2009 or other years with severe weather conditions, one could also see a higher figure. This is a particularly bad year but there have been other years in a similar category. We must deal with that and ensure there is no repeat next year. We must work on farms in that respect.

This is not about giving €10 million or €12 million to farmers but rather focusing money where it is required. If we need to put €10 million in place for a scheme to ensure animals are fed, we must do it and take the money from other schemes. We will do so if that becomes the priority. I want to be able to stand over every cent I spend to ensure we get full value for money in solving the problem at hand, which is getting fodder into Ireland. That is why we have focused on the transport scheme.

There has been some suggestion that the political response has been tardy. Nobody called for a transport subsidy until I introduced it; there was nobody in the Opposition or farm organisations seeking it. I was there for the second or third load of straw that came to Mitchelstown through Dairygold. My Department has been to the fore in trying to respond to this issue, spending extra money where it was needed to encourage the import of fodder. People spoke about difficulties arising from weather patterns and agricultural issues but nobody came up with a solution until we started introducing them. We should be clear on that, as we have not been following anybody; we have tried to pull people together to find sensible, cost-effective solutions to get feed into farms.

With regard to credit and banking, I do not want to give the impression that I have full faith in all banks to give out credit. Nevertheless, the conversations I have had suggest that credit should be available for farmers who are struggling to find enough money to buy fodder. There is confidence in the banking system that the farming community can repay the loans. If there are anecdotes or examples of farmers not getting a fair deal on credit, I want to hear about it. We will follow up on a case-by-case basis, as we are doing now.

I cannot reduce the cost of fertiliser, the vast majority of which is imported. That is like asking me to reduce the cost of gas. We can ensure that when farmers buy fertiliser, they will get credit interest-free as an encouragement. All the co-operatives have agreed to provide interest-free credit to farmers for May to encourage them to invest in fertiliser, as that is where we need to invest to ensure we do not have a problem.

I will be happy to return to the Seanad later in the summer or in September, when we can reassess the position in terms of the medium term planning for next winter and the auditing that must be done on a farm basis to establish how much fodder will be available for next winter and what will be required. This is an ongoing issue. It is not simply a question of filling the gap. There is an ongoing consequence in terms of indebtedness for farmers and ensuring that animals are fed next winter. We must have an ongoing discussion about it and I will be happy to facilitate that if I can.

Paddy Burke (Fine Gael)
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That concludes statements on the fodder shortage. When is it proposed to sit again?

Michael Comiskey (Fine Gael)
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At 2.30 p.m. on Tuesday, 14 May 2013.