Charlie McConalogue (Donegal, Fianna Fail)
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1010. To ask the Minister for Agriculture, Food and the Marine his plans to introduce a crisis hardship fund to support farmers that have had to expend significant funds to source fodder and feed cattle as result of reduced fodder availability as a result of severe drought summer type conditions. [36939/18]

Michael Creed (Cork North West, Fine Gael)
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I would like to give the Deputy a full account of the actions and measures I have put in place over the short last while to meet the challenges in this sector. Following the fodder difficulties of last Winter and Spring I formed a representative group chaired by Teagasc, including stakeholders such as Co-ops, banks, farm bodies, among others, to coordinate advisory messages to farmers this Summer around replenishing depleted stocks of fodder. I have requested the group to co-ordinate advice on managing grazing and fodder conservation through this extended period of extraordinarily dry weather. Practical advice is being shared across the group on dealing both with the current weather and on filling the significant fodder gap.

On the 26^thJune last, I launched a national fodder survey to be compiled by Teagasc through its client network as well as clients of the other fodder group stakeholders, with another survey being conducted this week. Given the findings of this survey, the overall priority must be to conserve as much fodder for the coming Winter as possible when the opportunity to do so arises.

I met with Commissioner Hogan on the 24^thJuly last and briefed him on the impact on Irish Agriculture of the dry spell. I secured agreement from the Commissioner to pay higher advance payments this autumn. As a result, advances for Pillar 1 and 2 payments will be increased to 70% and 85% respectively, resulting in €260 million in additional cash flow for farmers at a vital time of the year. I also proposed to Commissioner Hogan certain flexibilities for participants under the GLAS scheme which will replenish their fodder stocks for the winter period. In this connection I am pleased to have secured the agreement of the European Commission for these measures which, are now in place since 1^stSeptember and which together bring a potential additional 270,000 hectares into fodder production.

Furthermore on the 3^rdAugust I announced a €2.75 million Fodder Production Incentive for Tillage Farmers to encourage tillage growers to actively engage in the fodder market. This measure will provide an incentive of €155 per hectare for tillage growers who grow a temporary crop of short rotation grasses for fodder production over the winter months and €100 per hectare for those growing catch crops such as fodder Rape, Turnips and Brassica crops. Currently over 23,000 hectares of catch crops are supported under the Agri-Environment Scheme, GLAS. This additional funding commitment aims to incentivise a doubling of this area.I am confidentthis measure will support Tillage farmers to supply into the market for fodder. Tillage farmers are a critical part of our agricultural sector, supplying the brewing and distilling industry, grain to the feed industry and straw to the livestock sector, whilst also delivering other benefits.

Also, following consultation in August with my Government colleague, the Minister for Planning, Housing and Local Government, Mr. Eoghan Murphy T.D., flexibility has been granted on an extension to the closed period for spreading of chemical and organic fertilisers in order to capitalise on Autumn grass growth for fodder production. This extra two weeks granted by Minister Murphy will allow application up to the 30^thSeptember and 31^stOctober respectively and again maximise the opportunity for Autumn production.

On the 22^ndAugust I announced a €4.25million Fodder Import Support Measure for Autumn 2018. The measure seeks to reduce the cost to farmers of imported forage, that is: hay, silage, haylage, alfalfa and others from outside the island of Ireland. The measure will operate through the Co-operatives/registered importers and will cover forage imported from 12^thAugust 2018 to 31^stDecember 2018 and will of course be subject to EU State Aid (de-minimis) rules. I wish to confirm that while the measure will operate through the Co-operatives/registered importers, the actual beneficiaries will be farmers who need supplies of fodder.

I know that the range of measures introduced by me to-date taken together and targeted at producing as much fodder as possible from our own land provide the most effective response to a fodder shortfall. I can also assure you that I will continue to closely monitor and engage on this significant challenge during this difficult period.

Charlie McConalogue (Donegal, Fianna Fail)
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1011. To ask the Minister for Agriculture, Food and the Marine his plans to introduce a low cost loan scheme to support farmers that have had to expend significant funds to source fodder and feed as a result of severe drought summer type conditions and reduced prices for produce. [36940/18]

Michael Creed (Cork North West, Fine Gael)
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One of my priorities is to improve access to finance for the agri-food sector. I announced in Budget 2018 that my Department is considering the development of potential Brexit response loan schemes for farmers, fishermen and for longer-term capital financing for food businesses. These schemes are developed and delivered in cooperation with the Strategic Banking Corporation of Ireland and take time to develop and operationalise. Consideration and discussions with the Department of Business, Enterprise and Innovation and the Department of Finance are ongoing on a long-term investment scheme and an announcement in this regard is expected to be made shortly.

While continuing to explore additional funding mechanisms to address gaps in the market, I also liaise with the main banks on access to finance issues relating to the agri-food sector. I have had ongoing engagement with the banks on the cash flow pressures arising from the effects of the weather on grazing and fodder stocks and I welcome that they are following through on their commitment to support the sector. The delivery of last year’s Agriculture Cash Flow Loan Scheme is acting as a catalyst to encourage financial institutions to improve and develop new loan products for the sector. A recently announced initiative by one of the main banks mirrors the Agriculture Cashflow Support Loan Scheme in offering a discounted interest rate with extended and flexible repayment terms. The ‘Milk Flex’ loan product developed by the Irish Strategic Investment Fund, with dairy co-op and private banking participation, is another good example of innovation in this regard.

I know that many farmers will be relying heavily on co-op and merchant credit to navigate through the current situation. Therefore, I have also welcomed recent initiatives by co-ops in relation to credit facilities for their suppliers.