Noel Grealish (Galway West, Independent)
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505. To ask the Minister for Agriculture, Food and the Marine when he will introduce a €200 payment to maintain the suckler cow herd to help maintain incomes on farms in the west of Ireland; and if he will make a statement on the matter. [5380/17]

Michael Creed (Cork North West, Fine Gael)
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The introduction of a €200 suckler cow payment would involve a redistribution of funds allocated to farmers under Pillar I. This would necessitate a linear cut across payment to all BPS beneficiaries.  The estimated annual  cost of such a measure could exceed €200 million.

Ireland has supported the greater market orientation of the CAP over recent reforms, including the decoupling of payments from production. This has provided farmers a measure of income stability from the Basic Payments Scheme while allowing them  to adjust production in response to market demand.  

In relation to funding under Pillar II of the CAP, the Beef Data and Genomics Programme is the current main support for the suckler sector and provides farmers with some €300 million of funding over the next six  years. The BDGP builds on the substantial investment in data recording and genomics which has been made in recent years and will continue to drive further developments and improvements in this area.

The BDGP was agreed with the European Commission as part of Ireland’s Rural Development Plan (2014-2020) alongside a number of other schemes such as ANCs, GLAS and TAMS,  which also benefit suckler farmers. I am very conscious of the positive effect that the programme is having on the Irish suckler herd. It will help to improve productivity, profitability and carbon efficiency in the national herd.

I am of course conscious of the challenges faced by suckler farmers currently and am strongly of the view that the BDGP is the most appropriate means of providing targeted support to suckler farmers currently.

The current model of funding via the BDGP provides support to enable suckler farmers to improve  efficiency and profitability by improving the overall genetic merit of their beef herd. I firmly believe that the scheme will deliver tangible long-term and cumulative positive effects for both suckler farmers participating in the scheme, and for farmers who buy the progeny of suckler cows for further finishing. It is also a significant contributor to Ireland’s well-established reputation as a producer of sustainable, high-quality beef.

In relation to any possible reopening of the scheme, this is currently being considered in the context of an assessment of budgetary priorities, the operation of the Rural Development Programme and the potential impact both upon the scheme itself and other schemes. Increasing the BDGP payment to €200 per animal, even just for existing applicants, would require a doubling of the Budget under the BDGP, with at least €350m additional expenditure required over the lifetime of the scheme.

 It should also be noted that support under RDP schemes can only be provided on the basis of costs incurred or income foregone.  Even if it were possible to reallocate resources from within the RDP, any increase in the level of payment to participants in the BDGP would require to the Department to submit an amendment of the RDP to the EU Commission, and an evaluation and approval by the relevant Directorates General. Even if a revised scheme were approved, any increase in the level of payment would inevitably result in additional actions being required to be carried out by farmers.

The Department will, of course continue to keep expenditure under the Rural Development Programme under review on an ongoing basis. As with all such programmes, there are inevitably issues of timing around the scheduling of payments.  Savings in one year do not necessarily imply savings over the lifetime of the programme.

The suckler sector is a vital component of Ireland’s rural economy and the provision of support for the suckler sector is critically important.  The range of supports as currently configured represents a balance between direct income support for the sector and rural development measures designed to improve its competitiveness and sustainability. I believe that it is entirely appropriate to maintain this balance of developmental and income supports  into the future.