Written answers

Thursday, 12 May 2022

Department of Agriculture, Food and the Marine

Departmental Schemes

Photo of Paul KehoePaul Kehoe (Wexford, Fine Gael)
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361. To ask the Minister for Agriculture, Food and the Marine further to Parliamentary Question No. 1893 of 26 April 2022, if progress has been made in furthering a compensation scheme for farmers who were impacted by the flooding in County Wexford on 25 December 2021; and if he will make a statement on the matter. [24032/22]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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I understand that the damage caused to farm land in the south Wexford region as a result of the flooding that was experienced on Christmas Day has been localised.

As the Deputy is aware, the flooding created significant local challenging conditions, in particular, to local road networks, land and farms adjacent to rivers. Water levels receded considerably since the flooding occurred on Christmas Day lessening the effect on crops and I understand that the majority of crops recovered well.

However, there are farmers still affected and I understand their concerns. We are monitoring this situation very closely and my Department is in conversation with Teagasc in the area on the matter.

Photo of Sorca ClarkeSorca Clarke (Longford-Westmeath, Sinn Fein)
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362. To ask the Minister for Agriculture, Food and the Marine the engagement he and his Department have had with those in the agrifood sector who are struggling with fuel and inflationary costs; and if he will make a statement on the matter. [24040/22]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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In the context of the Ukrainian crisis, significant implications are being seen across all sectors, including the agrifood sector.

As well as the immediate humanitarian crisis, which must take priority, we must take all necessary steps to ensure that food security is maintained and that our agrifood sector is supported.

At farm level, the impacts are already visible in the significant price rises in fertiliser, animal feed and fuel. Within my Department, I have established a Rapid Response Team to actively monitor the impacts on agrifood supply chains and to contribute to the whole of Government response to this crisis.

I have also established the National Fodder and Food Security Committee, headed by Teagasc, to coordinate an industry response to the emerging crisis in feed, fodder, fertiliser and other inputs, and to develop contingency plans and advice to assist farmers in managing their farm enterprises. While there are sufficient supplies of fertiliser and animal feed at present, price remains a concern.

In March, the Government approved my proposal to support Irish farmers with a targeted intervention package for the tillage sector and a multispecies sward initiative, worth over €12 million. This package is aimed at producing more native crops and reducing dependency on imports, and on producing crops with a low demand for chemical fertiliser.

Following discussions at EU level, including extensive engagement by EU Agriculture Ministers, the European Commission announced on 23rd March, via the communication “Safeguarding food security and reinforcing the resilience of food systems”, a range of measures to enhance global food security and to support farmers and consumers across the EU, in light of rising food prices and input costs.

This includes an exceptional aid package to support impacted farming sectors, and I announced on 13th April that Ireland's allocation of €15.8 million in exceptional EU funding would be deployed to support the pig and horticulture sectors.

As you are aware the Government introduced a temporary reduction in excise duty on fuels, assistance on the price of electricity & gas, and a targeted and temporary grant scheme for hauliers, all of which will be of some assistance to farmers and the agrifood sector. On Marked Gas Oil (MGO) specifically, the Minister for Finance reduced the rate on MGO by 2c/litre inclusive of VAT from 10th March.

Effective from 1st May 2022 a further VAT inclusive 3 cent reduction for MGO will apply, bringing the overall rate of MOT to €111.14 per 1,000 Litres. This reduced rate fully offsets the 1st May 2022 increase in the carbon tax and will apply until 11th October 2022. While primary responsibility for taxation policy is with the Minister for Finance, I continue to work closely with him to ensure that the tax code reflects the Government’s priorities for the agrifood sector and the economy generally.

Earlier this month, I brought a Memo for Information to Government on measures aimed to assist cattle and sheep farmers to produce fodder for next winter.

The aim is to encourage farmers to grow more grass and conserve as much fodder (silage and/or hay) during 2022 to prevent a fodder crisis during the coming winter and the impact that would have for animal welfare.

My Department is continuing to engage with the Department of Public Expenditure and Reform on the detail of the scheme, and I will provide more detail on these measures in due course.

I continue to engage with all our stakeholders and continue to work across Government, and with our European partners, to respond to this crisis, using all of the tools at our disposal. I believe we must support our farm families and their businesses through this period of significant upheaval.

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