Peadar Tóibín (Meath West, Aontú)
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151. To ask the Minister for Agriculture, Food and the Marine if his Department has undertaken any study to determine the reason for the increase in the cost of fertiliser. [26210/22]

Charlie McConalogue (Donegal, Fianna Fail)
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The fertiliser market is driven by global supply and demand, and whilst there are a number of factors influencing fertiliser price, the major driving factors in the rise in prices are increased global demand, rising production costs and issues with supply for certain fertiliser products.

Russia’s invasion of Ukraine exacerbated these issues and led to  further significant hikes in energy, feed and fertiliser prices and significant concerns around supply chain disruption. This is being felt at farm level and is something that I am acutely aware of.

No fertilisers are manufactured in Ireland, resulting in indigenous fertiliser companies being price-takers, dependent on global supply and demand and subject to Euro exchange rates against the US dollar and other currencies.

There has been an increased demand for fertiliser from large grain producing countries, which is being fuelled by strong global grain markets. This increased global demand has impacted on supplies and put upward pressure on prices.

Also, the increased price of gas, which is a key input into Nitrogen fertiliser production, has had a significant impact in recent months and continues to contribute to further upward trend in fertiliser prices.

As gas accounts for a high percentage of operating costs for the production of N fertiliser, some European Nitrogen producers had scaled back production and halted operations in some cases. However, many of these production facilities have now come back on stream in light of the likely increased economic returns of the present market situation.

EU anti-dumping measures on imports of fertilisers from certain Third Countries have added to the price of fertiliser imports, however, the EU Commission is currently examining the effects of removing these tariffs.

The significant increase of fertiliser is having an impact at farm level and it is something I am acutely aware of. Both myself and the rest of the Government have sought to insulate farm families as much as possible from increases in all input costs.

Alan Dillon (Mayo, Fine Gael)
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152. To ask the Minister for Agriculture, Food and the Marine the measures his Department have taken to assist farmers with the rising costs of inputs; and if he will make a statement on the matter. [27031/22]

Charlie 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 agri-food sector. This is the number one concern for me and the Department at present. I have taken a proactive approach to the crisis with the aim of supporting our farm families as much as possible through this difficult time.

At farm level, the crisis is already impacting very significantly on the price of fertiliser, animal feed and fuel. Following a record year for Family Farm Income in 2021, Teagasc has forecast that a decline in 2022 is now highly likely, as output price increases will fail to offset the rise in production costs.

Significantly higher production costs will be a feature across all sectors in 2022, with higher fertiliser, feed and fuel prices leading to an increase in agriculture input costs. The current market outlook for output prices is uncertain, with upward pressure likely, but very unlikely to cover the additional input costs.  

Within my Department, I have established a Rapid Response Team to actively monitor the impacts on agri-food supply chains and to contribute to the whole of Government response to this crisis.

I also established the National Fodder and Food Security Committee headed by Teagasc and tasked it to prepare 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.

There are sufficient supplies of fertiliser and animal feed at present although price remains a concern. The Government have introduced a temporary reduction in excise duty on fuels, assistance on the price of electricity and gas, and a targeted and temporary grant scheme for hauliers, all of which will be of some assistance to farmers and the agri-food sector.

I have announced a number of measures over the past three months to assist the agriculture sector including:

- €20 million in two packages for the pig sector, 

- €12 million for the tillage sector 

- €3 million for the horticulture sector

These targeted measures will help Irish farmers at a time of escalating costs and build resilience against the expected impact of the situation in Ukraine. 

Earlier this month, I brought a Memo for Information to Government on measures aimed to assist cattle and sheep farmers to produce fodder (silage and/or hay) during 2022 to prevent a Fodder crisis during the coming winter. My Department is continuing to engage with the Department of Public Expenditure and Reform on the detail of the scheme.

Following discussions at EU level, the European Commission announced in March, via the communication “Safeguarding food security and reinforcing the resilience of food systems”, a range of actions to enhance global food security and to support farmers and consumers in the EU in light of rising food prices and input costs. The communication sets out actions in three areas:

- First, it presents immediate actions to safeguard food security in Ukraine and around the world.

- Second, it addresses the challenge of food stability in the EU's food system, with a range of measures to support our farmers and maintain affordability for our citizens.

- Finally, it confirms the EU agenda to make our food system sustainable and resilient in the years to come.

It includes €500 million in exceptional aid to support farmers most affected, including an allocation of €15.8 million to Ireland, and agreement to deploy measures to support specific markets.

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.. We must protect our farm families and their businesses through this period of significant upheaval.