Jennifer Murnane O'Connor (Carlow-Kilkenny, Fianna Fail)
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66. To ask the Minister for Agriculture, Food and the Marine the supports that have been put in place to help farm families to deal with the cost-inflation challenges stemming from Russia’s war in Ukraine. [11496/23]

Charlie McConalogue (Donegal, Fianna Fail)
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I am acutely aware of the cost and inflation challenges facing our farm families as a result of Russia's illegal invasion of Ukraine. Over the past year or more, significant price rises have occurred primarily in the energy sector with natural gas and oil prices reaching record highs. These price rises have significant implications across all sectors, including the agri-food sector. In recent months these high natural gas and oil prices have reduced somewhat but are still significantly higher compared to 2021 prices.

Following a strong year for family farm Incomes in 2021, where average family farm income was up by 26% to over €34,000, Teagasc estimate that Family Farm Incomes in 2022 was mixed across systems. Dairy farms achieved significantly higher incomes, with a more moderate increase for tillage farms. Incomes on cattle farms, sheep farms and pig farms are estimated to have been lower in 2022.

Significantly higher production costs were a feature across all sectors in 2022, with higher fertiliser, feed and fuel prices leading to an increase in agriculture input costs and these are likely to continue in 2023. The current market outlook for output prices is uncertain but with some downward pressure apparent.

In the year since the invasion of Ukraine, I have announced a number of specific measures valued at €91 million to assist the agri-food sector, including an incentive for farmers to grow additional fodder, and specific supports for the pig, tillage & horticulture sectors. These targeted measures helped Irish farmers at a time of escalating costs.

To help all families, individuals and businesses deal with the rising cost of living, the Government announced a package of once-off measures worth €4.1bn as part of the overall €11bn Budget 2023. Measures of particular assistance to the agri-food sector included: the continuation of the reduction of excise duty on agricultural diesel to nil; the Temporary Business Energy Support Scheme and the Ukraine Enterprise Crisis Scheme, which will provide important support for farmers and food businesses with their energy bills; and the delivery of new loan schemes.

In Budget 2023, I announced the highest-ever level of funding for my Department, a 13% increase overall, and I will continue to deliver the appropriate level of support, including working with my colleagues on business supports for farmers, fishers and food & drink businesses.

In addition to supporting farm families dealing with the cost-of-living pressures and rising energy costs, Budget 2023 also lays the groundwork for strategic supports for the sector through the new €10 billion CAP Strategic Plan (CSP).

There are enormous challenges facing farm families, food businesses and coastal communities at present and I am working to support them in any way I can. We are living in uncertain times, but we need our farm families and fishers producing safe, sustainable, and high-quality food more than ever. I will continue to back them in doing that.