Written answers

Tuesday, 24 November 2009

Department of Agriculture and Food

On-farm Investment Schemes

9:00 pm

Photo of Brian HayesBrian Hayes (Dublin South West, Fine Gael)
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Question 505: To ask the Minister for Agriculture, Fisheries and Food the extent to which the major on-farm investment in infrastructure envisaged in Building Ireland's Smart Economy: A Framework for Sustainable Economic Renewal report has occurred since December 2008. [43127/09]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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In Building Ireland's Smart Economy A Framework for Sustainable Economic Renewal, the Government recognized that major on-farm investment in infrastructure would ensure more efficient and sustainable production methods in Irish agriculture. As part of this strategy, my Department has continued to make very substantial payments under the following on-farm investment schemes since the beginning of 2009:

SchemeAmount Paid (€m)
Farm Waste Management242.9
Farm Improvement24.6
Dairy Hygiene3.4
Pig Welfare1.4
Alternative Enterprises0.7
Total273.0

In addition, as part of proposals in relation to the use of unspent Single Payment Scheme and Modulation funds and the European Economic Recovery Programme, I have announced that, in the case of on-farm investment schemes, I intend to introduce support for a number of specific categories of farmers which shall be focused on supporting productive investment. The measures shall include:-

A scheme for young dairy farmers to make the necessary investment to adjust to expanding dairy opportunities and promote the operation of cost-effective commercial operations by young farmers;

Aid for sheep fencing and handling facilities to assist sheep farmers in reducing labour input in a vulnerable sector;

Aid for young trained farmers for water harvesting and conservation equipment, which will reduce water costs on farms;

Animal welfare grants (a) for pig producers to assist in the conversion to loose housing for sows; and (b) for poultry producers to assist in the conversion to enriched cages, free range or barn systems.

The measures will be strictly cash-limited and are currently being considered by the EU Commission. The measures will be introduced as soon as relevant EU approval has been obtained and following agreement on the specific cash-limits available for each measure.

Photo of Brian HayesBrian Hayes (Dublin South West, Fine Gael)
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Question 506: To ask the Minister for Agriculture, Fisheries and Food if the new milk quota trading scheme has increased the efficiency and competitiveness of milk production since December 2008 as outlined in the Building Ireland's Smart Economy: A Framework for Sustainable Economic Renewal report. [43128/09]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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Increasing the efficiency and competitiveness of milk production includes getting milk quota into the hands of those best placed to use it effectively, at reasonable cost. The Milk Quota Trading Scheme has been very successful on both fronts. Since its inception, the Trading Scheme has allowed more than 2,800 sales of quota to be conducted, accounting for the trade of 375 million litres of quota. This means that the Trading Scheme has facilitated about 2,000 quota holders in exiting from milk production at a market rate of return for their quota that has typically been far in excess of anything they could have achieved under its predecessor, the Milk Quota Restructuring Scheme.

In providing this attractive means of exit, the Trading Scheme has ensured that quota has moved smoothly from those no longer wishing to remain in milk production to those who can use that quota to make their dairy enterprises more efficient. Most importantly, those seeking quota have been able to purchase it in far greater quantities (up to 80,000 litres) under the Trading Scheme than under the Restructuring Scheme, which has been critical to their efforts to increase efficiency. In this manner the Scheme is contributing to a progressive improvement in the competitiveness of milk production in Ireland.

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