Robert Troy (Longford-Westmeath, Fianna Fail)
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118. To ask the Minister for Agriculture, Food and the Marine the measures he intends to introduce to help the sheep sector. [18488/23]

Charlie McConalogue (Donegal, Fianna Fail)
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A vibrant sheep sector is 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.

Although there has been a solid and sustained increase in average sheep prices since the end of February, I recognise that sheep farmers are experiencing more difficult market conditions in 2023 compared to recent years. Market prices, however, are a commercial matter to be bargained between suppliers and buyers and Government has no role in determining commodity prices in the sheep sector.

To bolster the sustainability of sheep farming, 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, which aims to improve sheep health and welfare - and through the broad range of schemes in the CSP.

My Department has received over 19,000 applications for the new Sheep Improvement Scheme, which has a 20% increase in the payment rate per ewe - from €10 to €12 - compared to the previous Sheep Welfare Scheme.

The CSP provides almost €10 billion in supports over the period to 2027 for farm families. Sheep farmers are eligible for several other CSP schemes, including the ACRES and Organics schemes, which are particularly suited to sheep enterprises or mixed beef and sheep enterprises, and which are likely to provide higher direct payments to sheep farmers this year.

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

Additionally, over the last year I have supported livestock farmers in dealing with increased costs by introducing:

- a €56 million fodder incentive scheme;

- an innovative €8 million national liming programme; and

- a €2.5m package for multi-species swards and red clover to reduce reliance on chemical fertilisers.

While market returns have reduced for sheep farmers, mainly because of increased input costs, Teagasc forecasts suggest that family farm income for specialised sheep farms in 2023 will be €19,500, a reduction of 2% on 2022. This reflects the important role which direct payments play in supporting sheep farm incomes.

With regard to the current challenges facing the sector, I have requested my officials to maintain close monitoring of market trends over the coming months and the Government will continue to make every effort to support the sector.

Having grown up on a sheep and suckler farm in Donegal, I am acutely aware of the skill and dedication of sheep farmers here. I want to ensure that there is a long-term and successful sector for this and subsequent generations of sheep farmers.

Violet-Anne Wynne (Clare, Independent)
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119. To ask the Minister for Agriculture, Food and the Marine what measures he will take financially or otherwise to assist farmers in meeting potential new targets with respect to the new Nitrates Action Programme; and if he will make a statement on the matter. [18588/23]

Charlie McConalogue (Donegal, Fianna Fail)
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The purpose of the Nitrates Action Programme, since its introduction in 2006, has been to prevent pollution of waterbodies from agricultural sources and to protect and improve water quality.

The Department of Housing, Local Government and Heritage (DHLGH) is the lead authority for the Nitrates Regulations and the Nitrates Action Programme (NAP). My Department works very closely with DHLGH in this regard.

The Government cannot provide funding for farmers to comply with minimum regulatory requirements. However, the Government continues to fund non-regulatory approaches, for example by contributing to the funding of the Agricultural Sustainability Support and Advisory Programme (ASSAP) or through the TAMS support for on-farm investments which are available to farmers for a period following introduction of new legal requirements

In addition, a further €60 million has been made available under the CAP strategic plan and for a Water European Innovation Partnership (EIP) and which closed earlier this year . The proposals submitted are currently being assessed.

The objective of this EIP is to reward and incentivise farmers who are willing to apply voluntary measures above meeting regulatory minimum requirements to improve water quality.

The Government has also introduced the accelerated capital allowances for investments in slurry storage facilities. This allows eligible expenditure to be claimed over two years for tax purposes thereby providing another incentive to encourage farmers to invest to improve water quality.

In the long-term our water quality trends will determine whether a continuation of Ireland's Nitrate’s Derogation can be secured from the European Commission. I believe the entire agri-food sector must strengthen its commitment and work together to deliver measures that will drive improvements in our water quality.

I committed to securing the Nitrates Derogation as I believe it plays an important role in supporting productive family farming.