asked the Minister for Agriculture the various steps taken by the Government to make additional funds available to alleviate the current problems of agriculture.
Written Answers . - Aid to Agriculture .
439.
: The following is a summary of the steps taken in the past few months:
1. Winter Fodder Scheme 1980
In view of the difficulties faced by farmers arising from the current problems of fodder supplies for winter feed a new fodder scheme was introduced on 21 August. The scheme which is estimated to cost £800,000, provided for:
(a) a subsidy of £20 per ton of CAN or equivalent in high nitrogen fertilizer purchased and used between 13 August and 6 September.
(b) a subsidy of £3 per tonne (maximum £150) for silage made between 21 August and 31 October on farms which had not made silage before.
2. Farm Modernisation Scheme
An extra £15 million has been provided under the farm modernisation scheme, including the western drainage scheme, to enable outstanding claims under this scheme to be cleared up-to-date.
3. Rates
The Government have arranged (a) to remove the obligation on farmers in the £40 to £60 RV category to pay the second moiety of rates this year, and (b) that no farmer who is in temporary financial difficulties will be pressed for his local rates and that no interest will be payable on outstanding amounts.
4. Restructuring of Existing Borrowing
Arising out of the Government discussions with the four associated banks about the present position of farmers' indebtedness, the banks have indicated that they will take a constructive and positive approach to the restructuring of existing loans on a case by case basis where farmers are faced with serious repayment problems. The banks consider that this, coupled with the recent reductions in interest rates, should substantially ease the position.
Following an approach from the Government, the ACC also have indicated their willingness to review the situation of farmers with serious repayment problems and, as in the case of the banks, to restructure existing loans, where appropriate, on an individual basis.
5. Reduced Interest Loans from ACC and Associated Banks
In order to increase the incentive and facilities for productive investment in agriculture, the ACC and the Associated Banks, arising from discussions with the Government, are making available up to £100 million from foreign borrowings. This will be loaned to farmers at variable interest rates, originally in the range 13 per cent-13½ per cent but now somewhat lower. The types of investment covered include additional working capital where the farmers' own funds are seriously depleted; the financing of increases in breeding stock; land reclamation and drainage; fodder storage and buildings for additional livestock; and assistance to young farmers taking over holdings for the first time.
6. Beef Suckler Scheme
A beef suckler scheme, to be funded by the EEC, has been introduced whereby grants totalling about £6 million will be provided for about 60,000 farmers. Subject to Commission clearance, this will be supplemented by a national scheme of grants in respect of each additional cow in beef suckler herds.
7. Headage Payments in Disadvantaged Areas
The rates of grants under the cattle headage, beef cow and sheep headage schemes have been substantially increased. Subject to clearance by the EEC Commission the rates in the case of cattle and beef cows will be £32 and £28 as compared with £17 and £13 in 1979, while the sheep rates have been increased by £1 per head.
8. Sheep and Sheepmeat
In view of the delay in the implementation of the common organisation of the market for sheepmeat the subsidy under the mountain lamb extension scheme was increased from £1.50 to £3.00 per head as and from 22 September.
The common organisation of the market, for which the Government had been pressing, has been introduced as and from 20 October. Under the new arrangements a compensatory premium estimated at approximately £7 per ewe in the full year but depending on the actual level of market prices will be payable on good quality ewes.
9. Aid for Warble Fly Campaign
Assistance is being provided by the Government to keep the cost of warble dressing to farmers this year at last year's level.
10. Farm Relief Services
The annual grant to Macra na Feirme is being increased by up to £20,000 per annum for five years to enable that body to organise and co-ordinate the establishment of local farm relief services on a group basis.