Bernard Durkan (Kildare North, Fine Gael)
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311. To ask the Minister for Agriculture, Food and the Marine the extent to which the increase in costs of farm inputs with particular reference to fertilisers remains a concern; the degree to which he remains assured that such increases remain manageable and will not affect the viability of farming enterprises in the future; and if he will make a statement on the matter. [12732/17]

Michael Creed (Cork North West, Fine Gael)
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No fertilisers are now manufactured in Ireland, resulting in indigenous fertiliser companies being price takers, dependent on global supply and demand and subject to Euro exchange rates against the US dollar and other currencies. Fertilisers are mainly traded in US dollars and are thereby subject to fluctuations in currency exchange rates. A weak euro means increased costs for fuel and fertiliser imports and this has impacted on price trends in recent years.

The Central Statistics Office (CSO) monitors the price of fertilisers on a monthly basis. My Department receives data on the type and quantity of fertilisers and lime sold on a Quarterly basis from Industry.

Most recent CSO data on fertiliser prices (December, January and February 2017) show some increases in the price of fertiliser such as Urea and CAN recently. However current prices remain below prices in early 2016. (The price of Urea has increased from €330/tonne to €365/tonne.  Prior to this in 2016 we had seen a decrease in Urea price of 18% from €396/ tonne in January  2016 to €321/tonne in December 2016 and overall fertiliser prices reduce by over 20% in 2016 based on CSO data).

Currently, Europe is only 80% self-sufficient in fertiliser production and must import 20% of its requirements. As such, European and Irish fertiliser prices are strongly linked to global prices and heavily influenced by supply and demand.

I understand that the price of fertilisers is an important issue for farmers.  Over the past 20 years fertiliser use has decreased by 28% reflecting improved environmental controls brought about by schemes like REPS, AEOS and GLAS. The Nitrates Directive limits the amount of Chemical Nitrogen and Phosphorus based on stocking limits and crop types. There is a greater awareness of the value of slurry which is being used to replace nutrients as chemical fertiliser prices increased. Farmers would benefit from using the cheaper ureic form of Nitrogen- Urea fertiliser, which has a price advantage over calcium ammonium nitrate (CAN) per unit of nitrogen.

Teagasc has identified that soil pH has a large influence on nutrient availability with 64% of grassland soils below optimum pH. Grassland soils can release up to 80 kg N/ha per year when soils are at optimum pH. This can be achieved by the application of ground limestone based on soil analysis results.