Bernard Durkan (Kildare North, Fine Gael)
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1587. To ask the Minister for Agriculture, Food and the Marine the extent to which the increase in the cost of farm inputs with particular reference to fertilizers remains a concern; if he has satisfied himself 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. [28434/17]

Michael Creed (Cork North West, Fine Gael)
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Most recent CSO data on fertiliser prices (December 2016, January, February and March 2017) show increases in the price of Urea and CAN. These price increases are strongly linked to the price of natural gas which increased over the Spring period. Urea has increased from €321/tonne to €359/tonne, in part due to increased input costs for fertiliser manufacturers and a reduction in supply of Urea. Prior to this in 2016 we had seen a decreasein 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.

Based on data compiled by the CSO fertiliser costs reduced from €565.4 million in 2015 to €503.2 million in 2016. This includes an increase in sales of 1.1% for 2016.

I understand that the issue of price of fertilisers is an important issue for farmers and is one of the main input costs on farms. 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. Irish farmers have a preference for using ammoniacal nitrogen in the form of Calcium Ammonium Nitrate (CAN) with over 80% of nitrogen purchased in this form. Farmers would benefit by switching to the cheaper ureic form (Urea) of nitrogen which has a price advantage of up to 30% over CAN without loss of production.

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.

A proposed fertiliser regulation is being discussed at EU Council and Parliament which will widen the range of fertilisers that will be available on the EU market and encourage the use of recycled material as fertiliser.