asked the Minister for Agriculture and Fisheries whether he is aware that there is a movement by certain bodies to discourage farmers from growing extra wheat; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Wheat Growing.
15.
Any move of this kind is unjustified and is contrary to official policy.
On the basis of the use of 75 per cent of native wheat in the grist, the annual requirement of the flour milling industry is at present approximately 240,000 tons of dried native wheat. If in any year a surplus of millable wheat is produced it can be readily disposed of on the home market for animal feed, thus reducing our dependence on imported grain. This is financed by the levy arrangements introduced in the Agricultural Produce (Cereals) (Amendment) Act 1958 on the suggestion of the representatives of the wheat growers.
We can take it, then, that the Minister does not condone any of these statements made by specific newspapers and journals which would deter farmers from growing wheat this year? They have been saying that the reason for this is that we are overstocked in relation to wheat acreage.
The policy is still "Grow More Wheat".
Is it not true that if farmers grow the same amount of wheat this year as last year the price can go down by from 10/- to 15/- a barrel? The Minister said we can dispose of our surplus wheat for animal feeding. Would it not be better to grow barley?
Has the Deputy talked to anybody recently about the economics, the financial advantage, of switching from wheat to barley on the existing arrangements? I do not think you could sell farmers the idea that, if they can grow wheat satisfactorily on land which is suitable and where they can have a rotation to suit, they should switch. Apart from that, it is necessary to say again, this time by way of correction, what figure was paid for wheat grown last year. We had accepted it at £12½ million. It now exceeds £15 million and this for 219,000 acres grown. The yield, at 36 cwt. average, is phenomenal in any country in the world which grows wheat, and the return per acre on average is indicative of the rising trend in the earnings of our farming community as a whole. It has generated, perhaps unfortunately, conacre bidding this year for land for wheat, putting a cost on conacre beyond £40 an acre and in some cases as high as £50. It is an amazing figure but last year's outturn generated this demand for land.
In addition, last year we paid out of the Exchequer £1½ million that in fact should not have been paid out were it not that the levy arrangements under the 1958 Act were not workable —the principle was good but the practicality was bad. The Exchequer paid last year as bonus £1½ million. When we consider further that 240,000 tons of wheat is our maximum millable home requirements for the 75 per cent grist as against world prices available for comparable wheat, that the community are contributing another £4 million to be added to the £1½ million bonus, it will be seen we contributed towards wheat growing £5½ million last year. Farmers will grow more wheat and will continue to grow it if the harvests are good, even if there is a levy.
Is it not true that if we produce the same amount of wheat this year and if the same amount is delivered to the mills——
Thanks very much for reminding me. The levy system is not new. It was put into legislative affect by the Oireachtas at the instance of the wheat-growing representatives in 1958. I have not changed the law. I have merely used commonsense to make the levy work. The levy was agreed in legislative form and it was requested by the representatives of the wheat growers more than 10 years ago. There is no question of penalising anybody. It is a question of putting into effect what the House put into legislation at the time. I am making it work this year whereas it was impossible to make it work in the past.
Is it not true that they will get from 10/- to 15/-?
This latter point would need to be cleared up. There will be no levy unless there is a greater quanately tity of millable wheat than 240,000 tons, the target we did not reach until 1968.
If we have now the same amount of wheat as last year——
I hope we have.
——why not let them know the exact position?
Nobody knows the exact position. If it is not a good harvest there will be no levy.