Bernard Durkan (Kildare North, Fine Gael)
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Question 139: To ask the Minister for Agriculture, Food and the Marine the extent to which he has received communications from the Irish Farmers Association and other farming representative bodies in the matter of the rising costs associated with the industry; the extent to which the main features of such cost increases have been identified; if he expects any amelioration in this area; and if he will make a statement on the matter. [28884/12]

Simon Coveney (Cork South Central, Fine Gael)
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I am of course in regular contact, both directly and through correspondence, with farming representative bodies, as are my officials, and I am aware of the challenges faced by farmers, including increased cost of inputs such as fuel, feed and fertiliser as well as access to credit. Fuel and energy costs are a major part of overall costs for farmers. One of the long-standing measures in place to assist them with these costs is the reduced cost of marked gas oil (also known as green diesel). An additional relief in relation to carbon tax was also introduced as part of budget 2012, reflecting the Programme for Government commitment.

Other costs are also affected by price volatility in a global marketplace. While farmers received higher prices for their product in 2010 and 2011 than they did in 2009, they are also paying higher prices for inputs and their margins are being squeezed. Teagasc research suggests that producer margins will fall in 2012 compared to 2011. However, they also believe that the decline will not cause margins to go below those experienced in 2010, which overall was a good year for the agri-food sector.

As higher input costs and price volatility are global issues they must be addressed at a global level. That is why the G20 has developed a number of measures, such as the agricultural markets information system (AMIS), to limit speculation and improve the information available to farmers when they are making decisions about production. In tandem with this, Ireland must continue its discussions with its EU partners to create a CAP that recognises the challenges faced by farmers.