Written answers

Tuesday, 20 February 2018

Department of Agriculture, Food and the Marine

Crop Losses

Photo of Bobby AylwardBobby Aylward (Carlow-Kilkenny, Fianna Fail)
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455. To ask the Minister for Agriculture, Food and the Marine if the possibility of re-opening the crop compensation scheme for persons that have suffered crop losses in 2017 due to adverse weather conditions has been examined; and if he will make a statement on the matter. [8643/18]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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Firstly I wish to acknowledge that tillage farmers have come through a very difficult period over the last few years with weak market returns and sometimes challenging weather conditions.  

In 2017, I supported this very vital sector through a number of measures.  Last year I introduced the €150m Agriculture Cashflow Support Loan Scheme and extended it through provision of additional national funding, to cover the tillage and horticulture sectors. There was a very positive reaction by farmers, including tillage farmers, to the Scheme, which has proved that significant demand exists for low cost flexible finance.  The “Agriculture Cashflow Loan Scheme” has provided a template for access to finance schemes, including the recently announced “Brexit Loan Scheme” for SMEs.  I am also considering the development of a potential Brexit response loan scheme for farmers, fishermen and for longer-term capital financing for food businesses; for which my Department has secured €25 million of funding in 2018.

As a further support to tillage farmers I introduced the Tillage Capital Investment Scheme under TAMS II which opened for online applications on the 8 March 2017. The specific areas of investment include Minimum Disturbance Tillage Equipment, Sprayers, Rain Water Harvesting, Grain Storage and Grain dryers.  There has been a significant level of interest in investments by the tillage sector, with a total number of 796 applications received so far and 639 approvals. Over €1.38m has now issued in respect of 126 payment claims. Payments will continue on an ongoing basis.  This is the latest of the Targeted Modernisation Schemes (TAMS II) to be launched under the Rural Development Programme 2014-2020. The Scheme is co-funded by the European Agricultural Fund for Rural Development (EAFRD)

While the challenges facing the sector at this point in time are real, in Ireland we can grow cereals with the highest yields in the world and this is an advantage we must press home and look to exploit other areas under our own control, for example, my Department provides a high quality official crop seed certification scheme to the industry in addition to an extensive national crop variety evaluation programme. I would also encourage tillage growers to fully implement the advice and research provided by Teagasc in relation to efficient and sustainable production of crops. I remain committed to assisting all involved in the sector to optimise efficiency and sustainability. Notwithstanding the range of its current supports my Department will continue to closely engage with the tillage sector particularly through the Tillage Stakeholders Group.

Finally in regard to the Weather Related Crop Loss Support measure I introduced in July 2017; this was a one-off targeted measure in response to the exceptionally challenging harvest conditions of September 2016 and confined to addressing that issue.

Photo of Bobby AylwardBobby Aylward (Carlow-Kilkenny, Fianna Fail)
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456. To ask the Minister for Agriculture, Food and the Marine if the possibility of seeking permission from the EU to establish an adverse weather scheme under the rural development programme for persons that have suffered crop losses in 2017 due to adverse weather conditions will be examined; and if he will make a statement on the matter. [8644/18]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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I wish to acknowledge the importance of the tillage sector and its contribution to the competitive development of the agri-food industry. This valuable sector has encountered some challenging times recently, including a number of years of weak markets and a period of challenging weather in the autumn of 2016.

My Department is working with all of the stakeholders to address various challenges and provides a range of supports to underpin the sector. Last year I introduced the €150m Agriculture Cashflow Support Loan Scheme and extended it through provision of additional national funding, to cover the tillage and horticulture sectors. There was a very positive reaction by farmers, including tillage farmers, to the Scheme, which has proved that significant demand exists for low cost flexible finance. The “Agriculture Cashflow Loan Scheme” has provided a template for access to finance schemes, including the recently announced “Brexit Loan Scheme” for SMEs. I am also considering the development of a potential Brexit response loan scheme for farmers, fishermen and for longer-term capital financing for food businesses; for which my Department has secured €25 million of funding in 2018.

As a further support to tillage farmers I introduced the Tillage Capital Investment Scheme under TAMS II which opened for online applications on the 8 March 2017. The specific areas of investment include Minimum Disturbance Tillage Equipment, Sprayers, Rain Water Harvesting, Grain Storage and Grain dryers. There has been a significant level of interest in investments by the tillage sector, with a total number of 796 applications received so far and 639 approvals. Over €1.38m has now issued in respect of 126 payment claims. Payments will continue on an ongoing basis. This is the latest of the Targeted Modernisation Schemes (TAMS II) to be launched under the Rural Development Programme 2014-2020. The Scheme is co-funded by the European Agricultural Fund for Rural Development (EAFRD)

Ireland's 2014-2020 Rural Development Programme does not contain a measure for restoring agricultural production potential damaged by natural disasters and introduction of appropriate prevention. Following detailed analysis and public consultation at the formation of the programme, it was concluded that because of its geographic position Ireland is not generally prone to suffering from natural disasters and that pre-existing nationally funded measures are considered to be sufficient to address any possibilities.

In response to the exceptionally challenging weather conditions experienced during the harvest period in 2016, I introduced a nationally funded Weather Related Crop Loss Support measure in July 2017. This was a one-off targeted measure confined to addressing that event.

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