Michael Lowry (Tipperary, Independent)
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516. To ask the Minister for Agriculture, Food and the Marine if a support package for the sheep sector can be established through the Brexit Adjustment Reserve Fund, given the extreme financial pressures faced by sheep farmers in Ireland; if he will direct officials in his Department to develop a case study for the provision of financial support through the fund, given that the sheep sector is one of the most affected sectors as a result of the UK's withdrawal from the EU; and if he will make a statement on the matter. [21598/23]

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. The Government has no role in determining commodity prices in the sheep sector. However, it is heartening to see markets are now returning consistently better prices for farmers than at the start of the year. According to my Department’s weekly Meat Market Report, the national average price for Irish sheepmeat at the end of April (week 17) was over €7.31/kg and wassimilar to the levels prevailing during the corresponding periods in 2021 and 2022.

It should be noted that, 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 closely monitor the sheep market situation over the coming months and the Government will continue to make every effort to support the sector.