Bernard Durkan (Kildare North, Fine Gael)
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479. To ask the Minister for Agriculture, Food and the Marine the extent to which the cereal sector remains strong and sufficient to meet current requirements and challenges; and if he will make a statement on the matter. [41948/17]

Michael Creed (Cork North West, Fine Gael)
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The maintenance of an efficient and viable cereals sector in Ireland is clearly very important to the well being of the agri-food industry. Indigenous production of cereals is of course an important part of primary agriculture production. In addition to generating an income for our tillage farmers, the cereals sector is a key source of seed production, grain for the milling and malting industry and feeding stuffs for the livestock sector. The long-term average cereal production in Ireland is in the region of 2.2 million tonnes per annum and it is desirable to sustain this level of production in order to avoid over dependence on imported cereals.

The 2017 harvest is estimated by Teagasc to be in the region of 2.1 million tonnes, despite a decrease in the area devoted to tillage. This is mainly due to the availability of new improved varieties capable of higher yields and thereby helping to sustain a viable tillage sector. Cereal prices are highly sensitive to global supply and demand and volatility in prices is likely to become a constant feature of Irish cereal prices in future and grain producers should factor such fluctuations into their planning and marketing strategies. I nonetheless acknowledge the continued tight margins experienced by growers and the challenges facing the sector, as global production due to higher yields continues to outstrip demand. The Deputy will be aware of a number of ongoing measures I introduced in this regard to sustain the tillage sector and promote its growth in the future. Among these measures was a targeted crop loss support measure to assist growers most affected by the wet weather harvest conditions of September 2016.

In addition to this measure I also introduced the Agriculture Cashflow Support Loan Scheme and extended it to cover the tillage and horticulture sectors. I have been advised by the banks that all of the remaining €150m is committed and is in the process of being drawn down. I am pleased at the very positive reaction by farmers, including tillage farmers, to the Scheme, which has proved that significant demand exists for low cost flexible finance.

As a further support to tillage farmers I also introduced the Tillage Investment Scheme under TAMS II earlier this year. The specific areas of investment include Minimum Disturbance Tillage Equipment, Sprayers, Rain Water Harvesting, Grain Storage and Grain dryers. This Tillage Scheme is the latest of the Targeted Modernisation Schemes (TAMS II) to be launched under the Rural Development Programme 2014-2020. The second tranche is open until 6th October 2017. There was a significant level of interest in investments under this measure particularly in relation to precision equipment to improve profitability at farm level with a total number of 490 applications received in the first tranche for the tillage sector alone. 450 approvals have now issued in respect of the first tranche and payments and approvals are issuing on an ongoing basis.

My Department operates a range of services aimed at improving the level of production, quality and viability of the Irish cereal sector. These services include seed certification, seed testing, variety testing and the publication of recommended lists of varieties, research funding through the 'Stimulus' competitive research programme and funding for the quality assurance scheme. In addition, Teagasc provides research, training and advisory services for cereal producers. The value of all these support services is reflected in the fact that Irish cereals producers have consistently achieved some of the highest yields in the world.