Alan Dillon (Mayo, Fine Gael)
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764. To ask the Minister for Agriculture, Food and the Marine if a rescue package can be put in place for the sheep sector through the Brexit Reserve Fund, given the difficulties currently being faced by sheep farmers; and if he will make a statement on the matter. [14916/23]

Alan Dillon (Mayo, Fine Gael)
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765. To ask the Minister for Agriculture, Food and the Marine if additional funds can be included in the sheep improvement scheme to increase the current payment of €12 per ewe; and if he will make a statement on the matter. [14917/23]

Charlie McConalogue (Donegal, Fianna Fail)
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I propose to take Questions Nos. 764 and 765 together.

I regard a viable sheep sector as an integral element of a balanced regional economy and I know that sheep farmers are committed to producing a world-class, safe and sustainable product.

I also recognise the pressure that sheep farmers have been under as a result of the recent downturn in the markets. Market prices, however, are a commercial matter between suppliers and buyers and Government has no role in determining commodity prices in the sheep sector

My Department provides significant support to the sector under the new CAP Strategic Plan (CSP), both through a new targeted scheme for sheep farmers - the Sheep Improvement Scheme - and through the broad range of schemes in the CSP.

The new Sheep Improvement Scheme has over 19,000 applications submitted. The scheme replaces the previous Sheep Welfare Scheme but shares the same aim of improving animal health and welfare in the sector, with a 20% increase in the ewe payment rate - from €10 to €12 - compared to the previous scheme.

The CSP provides almost €10 billion in supports over the period to 2027 for farm families. Sheep farmers are eligible for several other schemes in addition to Sheep Improvement Scheme, including the ACRES and Organics schemes, which are particularly suited to sheep enterprises or mixed beef and sheep enterprises.

I have secured places for all 46,000 farmers in ACRES which I am certain will benefit many sheep farmers.

Furthermore, support for early-stage producer organisations, which will be introduced later this year, will strengthen the position of sheep farmers in the supply chain.

At my request, the Food Vision Sheep Group met last month to discuss the sheep market situation. All the main stakeholders are represented on the Group and were invited to make submissions. I have received and will carefully consider the Chair’s report on the outcome of the Group's deliberations and my Department will continue to closely monitor the market situation in the sector.

While market returns have reduced from the record prices of recent years due to increased input costs, Teagasc forecasts suggest that family farm income for specialised sheep farms in 2023 will be 2% down on 2022 at €19,500, due to the important role which direct payments play in contributing to sheep farm incomes.

In relation to the specific query about the Brexit Adjustment Reserve (BAR), the BAR provides financial support to the most affected Member States to counter the adverse economic, social, territorial and, where appropriate, environmental consequences of the withdrawal of the UK from the EU. Expenditure under the Reserve must demonstrate a direct link to the negative impact of the withdrawal of the UK from the EU, and failure to do so will see the European Commission deem expenditure ineligible.