Michael Lowry (Tipperary, Independent)
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542. To ask the Minister for Agriculture, Food and the Marine further to Parliamentary Question No. 516 of 9 May 2023, if he will direct officials in his Department to develop a case study for the provision of financial support through the Brexit Adjustment Reserve 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. [22839/23]

Charlie McConalogue (Donegal, Fianna Fail)
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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, as the Deputy can appreciate, has no role in determining commodity prices in the sheep sector. However, it is heartening to see that 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 sheep during the first week of May (week 18) was €7.36/kg which was similar to the prevailing level for the corresponding period in 2022.

It should be noted that my Department already provides significant support to the sector under the new CAP Strategic Plan (CSP), both through the Sheep Improvement Scheme and through the broad range of CSP schemes for which sheep farmers are eligible. These include the ACRES and Organic Farming 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.

Additionally, I have supported livestock farmers in dealing with increased costs over the last year by introducing a fodder incentive scheme, a national liming programme and a package to encourage the sowing of multi-species swards and red clover.

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.

The Brexit Adjustment Reserve (BAR) established by the EU Commission 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 BAR 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.

The sheep meat price data published by my Department does not provide conclusive evidence that the sector has suffered any persistent adverse impact as a result of the UK's decision to withdraw from the EU - in fact, the overall price trend has been predominantly positive for primary producers during that period.

In light of the current challenges facing the sector, my officials are closely monitoring the sheep market situation and the Government will continue to make every effort to support the sector.