Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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232. To ask the Minister for Agriculture, Food and the Marine if the possibility of introducing a low-cost loan scheme at the European investment loan rate of 1.5% will be examined in order to support farmers who have had to expend significant funds to source and transport fodder and feed as a result of severe weather conditions (details supplied) in 2018 and reduced prices for produce; and if he will make a statement on the matter. [40234/18]

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 last year's Budget 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 the current situation. Therefore, I have also welcomed recent initiatives by co-ops in relation to credit facilities for their suppliers.

Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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233. To ask the Minister for Agriculture, Food and the Marine if he will consider introducing a subsidy for a high-fibre concentrate feed to mitigate the guaranteed fodder shortage in winter 2018 following the severe spring snowstorm and summer drought in 2018; the steps he has taken to examine all available risk management tools to determine which supports are most appropriate to the farming sector; and if he will make a statement on the matter. [40235/18]

Michael Creed (Cork North West, Fine Gael)
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I would like to give the Deputy a full background and account of some of the actions and measures I have put in place to meet the challenges of recent weather events. 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, amongst others, to coordinate advisory messages to farmers around replenishing depleted stocks of fodder. I requested the group to co-ordinate advice on managing grazing and fodder conservation through the subsequent extended period of extraordinarily dry weather.

Following a meeting with Commissioner Hogan I secured agreement 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.

Furthermore on the 3rd August last I announced a €2.75 million Fodder Production Incentive for Tillage Farmers to encourage tillage growers to actively engage in the fodder market. This additional funding commitment aims to incentivise a doubling of the area currently under catch crops.

On the 22nd August I announced a €4.25 million 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. While the measure will operate through the Co-operatives/registered importers, the actual beneficiaries will be farmers who need supplies of fodder.

As the recent weather events have shown, farmers require access to measures that improve their capacity to respond to these occurrences and in this connection I have asked my officials, in the context of the upcoming CAP reform, to examine all available risk management tools to determine which of these may be most appropriate to the farming sector.

I am confident 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 and I have no plans to introduce a subsidy for a high-fibre concentrate feed. I can also assure you that I will continue to closely monitor and engage on this significant challenge during this difficult period.

Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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234. To ask the Minister for Agriculture, Food and the Marine if he will examine the possibility of reintroducing the fodder transport subsidy to assist farmers in transporting fodder which will be in demand due to the impending winter 2018 shortage following the severe spring snow and summer drought; and if he will make a statement on the matter. [40236/18]

Michael Creed (Cork North West, Fine Gael)
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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, amongst others, to coordinate advisory messages to farmers around replenishing depleted stocks of fodder. I also requested the group to co-ordinate advice on managing grazing and fodder conservation through the subsequent extended period of extraordinarily dry weather. Fodder surveys conducted by Teagasc at my request as part of the group's work identified a substantial deficit in national fodder stocks, identified at 18% in June and falling to 12% in September.

Therefore my overall priority was to support the conservation of as much fodder for the coming Winter as possible when the opportunity to do so arose and to supplement this with necessary imports as required.

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 and there has been positive engagement with this measure. This additional funding generated significant additional forage area currently under catch crops.

On the 22^ndAugust I announced a €4.25 million 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. While the measure will operate through the Co-operatives/registered importers, the actual beneficiaries will be farmers who need supplies of fodder.

Additionally, I also secured agreement from Commissioner Hogan 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 am confident 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 and ensure adequate supplies ahead of the coming winter. I have no plans to introduce a national fodder transport subsidy. However I can assure you that I will continue to closely monitor and engage on this significant challenge during the coming period.