Seanad debates

Thursday, 16 December 2021

Nithe i dtosach suíonna - Commencement Matters

Agriculture Industry

10:30 am

Photo of Garret AhearnGarret Ahearn (Fine Gael)
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I thank the Minister of State for coming to the Chamber today. Senator Lombard and I put down this matter for the Commencement to outline Fine Gael's view on the agriculture industry, the agrifood sector and, in particular, young farmers. It has been Fine Gael's policy as long as it has been in government, for as long as I can remember anyway, that we have been very supportive of the farming sector and young farmers especially. I remember the Common Agricultural Policy, CAP, negotiations in 2011 and 2012 when decisions were made to positively discriminate in favour of young farmers. We recognise, as a party, the contribution that the agrifood sector makes to rural areas and towns in areas like mine in Tipperary.

Very distressing comments were made by a Green Party MEP a week ago that have caused real fear within the agricultural community where I am from in Tipperary. The comments were ill-informed and inappropriate and they have not been clarified by the leader of the Green Party either. Will the Minister of State get the leader of the Green Party, Deputy Eamon Ryan, to clarify that the comments made by Mr. Ciarán Cuffe are not Green Party policy, as if they are we will have bigger problems? Will the Minister of State reassure farmers in my county in Tipperary that as long as Fine Gael is in government, we will support the agricultural sector, young farmers and the farming network? We as a party recognise the contribution farming makes to communities like mine in Tipperary and the knock-on positive effect it has for rural towns. Businesses are created on the back of a good agricultural industry and Fine Gael will support that for as long as we are in government.

Photo of Tim LombardTim Lombard (Fine Gael)
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I support this Commencement matter, which I have brought with Senator Ahearn. The agricultural industry has never been under so much pressure. There is a Climate Action Plan, a nitrates action programme, CAP reform and inputs of products have gone through the roof. The farming community have never felt so berated.

We are trying to generate a cohort of young people to get involved in farming but a Green Party MEP has lambasted them when speaking about investment. It is a major issue for the industry and this Government. If this MEP had such views on investment, why did he not say people in urban areas should not get motor loans? Instead, he attacked the rural agricultural community, and it makes no sense.

We must ensure our young farmers get involved in agriculture and that they will drive forward our economy and feed the world. We produce enough food in this country for 50 million people. A statement like this from an MEP was totally disrespectful and ill-informed. We must have a statement from the Government this morning indicating it will support young farmers and their views because we have the best young farmers in the world and they are the best-trained young farmers in the world. They do not go to agricultural college any more, they go to university. We have farmers out there with PhDs because that is the standard of our farming community. We need the Government to stand up and back these young trained farmers. We need to dispel the fear that comes from a misinformed MEP who is just trying to play politics with this matter and damage rural Ireland in the process.

Photo of Frank FeighanFrank Feighan (Sligo-Leitrim, Fine Gael)
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The Minister for Agriculture, Food and the Marine, Deputy McConalogue, and I are ardent supporters of generational renewal and the need to support and encourage young farmers as a way of ensuring we have the best and brightest in the sector. As outlined by the Tánaiste in the Dáil last week, people are entitled to their opinions and to write whatever letters they see fit but I and the Minister want to assure all farmers that Government policy is to support them in investing in their businesses to make them more economically and environmentally sustainable. The Minister was once a young farmer and he knows how important access to credit is and farming is an exciting career option for so many. We want to do all we can to encourage people into the sector. In Boyle I have been a businessman and understood how important the farming sector was to my business and town as well.

The challenge of generational renewal is widely recognised both at national and EU level, with the new CAP citing it as one of its nine key objectives. Our own Food Vision 2030 also highlights the challenge and proposes a number of actions, including maintaining the strong level of current support, the promotion of land mobility and succession planning, and increased education. This reflects the need to ensure a vibrant agriculture sector equipped with skilled and innovative young farmers to respond to societal demands for quality food and environmental public goods.

There is a range of measures both in the existing CAP and at national level that support younger farmers. There is the young farmers scheme, with payments of €110 million benefitting over 8,000 farmers each year, and the national reserve, with €35 million allocated since 2015, providing financial support to young farmers during the crucial early years of setting up a farm enterprise. Additionally, under the targeted agricultural modernisation schemes, TAMS, Il young farmer capital investment scheme, young farmers can avail of a 60% grant rate and over €133 million has been paid to over 5,000 farmers to date. Support to young farmers is also provided under the collaborative farming grant scheme. These partnership structures are further supported through the availability of a tax credit at national level to assist with the transfer of farms within succession farm partnerships, promoting and supporting the earlier transfer of family farms.

In addition, strong taxation measures assist land mobility and facilitate succession and are worth approximately €200 million to the sector per annum. Long-term leasing income tax relief has been an important driver of land mobility by providing access to land and security of tenure for younger farmers and a route to retirement for older farmers.

In terms of the new CAP strategic plan, CSP, the Minister has been actively engaging with stakeholders throughout the process of developing the new plan. Under the current CSP proposals, Ireland will continue to implement the young farmers scheme with an increased allocation of approximately €35 million per year to help young farmers establish their farming business. Qualifying young farmers will be paid on a per hectare basis, which will be more advantageous to young farmers than the current system, which was linked to payment entitlements. In tandem with this, we will also implement the national reserve in each year of the new CAP, along with maintaining a higher grant rate for qualified young farmers. The CSP will also continue to provide support for collaborative farming and will propose innovative ways to advise older farmers on succession and retirement options, which will increase the availability of land for younger farmers.

Access to finance is a crucial business need and as well as liaising with the main banks on issues relating to the agrifood sector, we work closely across government to provide important supports for businesses, including farmers. Most recently this has been to ensure that they have access to finance during the pandemic and also to help deal with the challenges brought about by Brexit. These supports have been delivered with the Strategic Banking Corporation of Ireland, SBCI. The future growth loan scheme was developed with assisting young farmers among its primary objectives and has been in great demand, with 1,296 loans to the value of €156 million sanctioned to farmers.

Photo of Garret AhearnGarret Ahearn (Fine Gael)
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I thank the Minister of State for his reply. I acknowledge that people are allowed to have individual opinions, and I have no problem with that, but they should not relay individual "facts" that are not true. Is there any other sector that would see a high-profile politician write to a bank to say it should not give those people loans? Could we imagine if somebody wrote to banks asking them not to give plumbers loans because it is not right? It is just not acceptable and as far as I am concerned, it is an attack on rural Ireland and where I am from. It is an attack on businesses and really good and progressive business people in the farming sector who want to support their local community. They spend locally and everything goes back to the community. It benefits Tipperary and all the towns around it.It is a disgrace that comments like that have not yet been clarified by his leader.

Photo of Tim LombardTim Lombard (Fine Gael)
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I concur with my colleague. The farming community is facing a financial crisis. Fertiliser prices have gone up by 300% in the past three months. We are going to have a major issue from now until spring. Farmers have been told to pay up front for fertiliser. A senior politician stepped out and said that no money should be given to farmers. We need the Government to stand up and say enough is enough. We need to support the farming community. It is under enough pressure as it is. The media is fundamentally against the farming community on the majority of issues. After a gap of eight months, RTÉ has still not appointed a correspondent for agriculture. We need to have a strong statement from the Government supporting young farmers and what they do for our society.

Photo of Frank FeighanFrank Feighan (Sligo-Leitrim, Fine Gael)
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Again, I thank the Senators for raising this important issue. It is important not to understate the deep hurt and upset caused in what is a cornerstone of rural communities by the letter written by Mr. Cuffe. It left farmers feeling unfairly targeted. I acknowledge that Mr. Cuffe has since stated that he should not have singled out young farmers, which is welcome. What we are asking farmers to do to achieve our climate targets in agriculture is not to carry out drastic or radical actions like herd cuts but to make gradual management changes on their farms that reduce emissions and increase carbon sinks while maintaining food production. In some cases, this will require that they invest in their businesses. Technologies such as low-emission slurry spreading, LESS, have significant benefits from a grass-growth perspective. Given fertiliser prices ahead of spring, making the best use of organic manure will be more important than ever. As the Senators know, the technologies involve a cost which is higher than that relating to less environmentally friendly options. Farmers have shown an appetite to adopt the newer technologies. In a few short years, we have gone from low levels to having more than one third of all slurry spread through LESS technology. This is a testament to farmers' willingness to act. It is up to the Government to support them in that.

We have already outlined the various schemes and enhanced grant rates. We are committed to ensuring that young farmers have a fair crack of the whip. We have work to do. Mr. Cuffe has since stated that he should not have singled out young farmers, which is welcome. I thank the Senators for raising this vexed and important issue.

Sitting suspended at 11.22 a.m. and resumed at 11.30 a.m.