Brian Cowen
Question:10 Mr. Cowen asked the Minister for Agriculture, Food and Forestry the steps, if any, he will take to deal with the crisis looming in the tillage sector in 1995; and if he will make a statement on the matter. [6456/95]
Ceisteanna—Questions. Oral Answers. - Crisis in Tillage Sector.
Michael McDowell
Question:22 Mr. M. McDowell asked the Minister for Agriculture, Food and Forestry the proposals, if any, he has made to the European Commission to address the shortage of land eligible for grain production in Ireland; and if he will make a statement on the matter. [6401/95]
Liz O'Donnell
Question:25 Ms O'Donnell asked the Minister for Agriculture, Food and Forestry the specific proposals, if any, for the tillage sector which his Department has submitted to Brussels since the formation of the present Government; and if he will make a statement on the matter. [6399/95]
Michael McDowell
Question:33 Mr. M. McDowell asked the Minister for Agriculture, Food and Forestry the conditions under which tillage farmers will be able to exchange eligible land for ineligible land within a holding; and when the transfers will commence. [6400/95]
I propose to take Questions Nos. 10, 22, 25 and 33, together.
My main concern in relation to the tillage sector is the significant decrease which has taken place in cereal production over the past two years.
This decrease was partly due to the set-aside requirement under CAP reform which resulted in the withdrawal from production of 26,000 hectares of land in 1993 an 36,000 hectares in 1994. In addition, adverse weather conditions over the same period also played a significant part in reducing production with below average yields having been recorded in most areas of the country. The effects of set-aside and low yields has resulted in reduced production from an average of two million tonnes in the years prior to CAP reform to 1.6 million tonnes in 1993 and 1.5 million tonnes in 1994.
The area under cereals had been declining significantly in the years prior to CAP reform. For example the national cereal area decreased by 32.5 per cent between 1980 and 1992. Notwithstanding this decrease in area, cereal production actually increased by 42 per cent over the same period. This was due to the changing structure of production and an increase in productivity. Given a return to normal weather conditions, I am convinced that the level of efficiency which now exists will help to offset to some extent the reduced area under cereals.
I am nevertheless concerned that the area under cereals in 1994 was below that which was necessary simply to take account of our setaside obligations.
To ensure that cereal production can recover to a level which will bring us close to self-sufficiency it will be necessary for producers to use our full base area. Given that it is not possible to offer incentives to growers to expand their areas, nor to waive the set-aside requirements, I have been looking at how the existing arrangements might be adjusted to remove elements which tend to discourage optimum use of our base area. The eligible land rule is a major factor in that problem. This restricts production of cereals to specific areas which historically were used for tillage. This is an unnecessary restriction in addition to the national base area limit which also applies under the area payments system.
I have already raised some ideas with Commissioner Fischler aimed at having the eligible land rule modified. Following consultations with all interested parties, I am now following this up with a formal submission to the Commission. In addition to putting forward proposals to modify the eligible land rule, this submission also seeks the waiving of unpaid penalty set-aside which would apply if the national base area were to be exceeded. I will be pursuing these requests with Commissioner Fischler as a matter of priority.
A recent change by the EU Commission in the eligible land rules, which allows the substitution of eligible land with ineligible land in certain circumstances is at present under examination in my Department with a view to the drawing up of criteria which can be used in order to avail of this facility. It is the intention that the necessary arrangements will be announced in advance of the autumn sowing season. This increased flexibility in the eligible land rule is a step in the right direction and will undoubtedly ease the situation on some farms. It is not, however, a total solution to the problems posed by the eligible land requirements and, as I have said, further solutions are being actively pursued with the Commission.
In summary, in response to the question by Deputy Cowen, while I am concerned at the drop in cereal production over the past year, I am satisfied that this situation can be attributed to a large extent to exceptional weather conditions. Given a return to normal cropping conditions I am convinced that the trend of the past two years can be substantially reversed.
In so far as the area under cereals is concerned there is no doubt that the eligible land requirement poses a threat to the greater utilisation of our base area. The measures which have already been taken or which are being pursued to resolve this problem are the facility to exchange eligible land with ineligible land which will be available from next year and the modification of the eligible land requirement which is being pursued as a matter of priority with the EU Commission. These changes to the existing CAP reform rules would undoubtedly help to achieve an increase in the utilisation of our national base area and in production of cereals.
I thank the Minister for his comprehensive reply, but it does not reflect the sense of crisis in the tillage sector. Serious concern has been expressed by specialised tillage farmers about the need for an immediate change in the eligible land criteria. At present specific areas are designated for tillage purposes and unless changes are made in this area many people who rely on the conacre system cannot obtain land to sow tillage crops. That is the reason for the huge decrease in tillage crops. Does the Minister agree there is a crisis in this area? Does he agree the malting barley sector cannot survive if it has to import corn? Unless a change is made in the eligible land criteria, we will witness extinction of the tillage sectors.
I agree there is reason for concern about this matter. The Government has been in office for only ten weeks and already we have taken major steps in Brussels to deal with the matter. This crisis has been signalled for some time. As a person who comes from a county that produces cereals, the Minister will play a significant role in ensuring that cereal farmers are not abandoned. If it is possible to make improvements in the eligible land criteria, that will be done. I agree the criteria are very restrictive and unfair considering that only land that was under tillage from 1 January 1987 to 31 December 1991 is eligible for cereal purposes. That is a matter that must be addressed. We are aware of the problem and are trying to deal with it. It did not arise today or yesterday; it has been signalled for some time but unfortunately not much action was taken and we hope to rectify that position.
Unfortunately every time one asks a question after a change of Government one is told it has not been long in office. The Minister has responsibility in this matter. If a person ploughs ineligible land they will not get arable aid. The malting barley sector is crying out for immediate action, otherwise that industry will be severely hit, as will poultry and pig producers. These people will be put in a more uncompetitive position as a result of having to use imported foodstuffs. The whole animal foodstuff industry will be put at risk unless this matter is dealt with.
We should avoid statements as they are a luxury we cannot afford.
Does the Minister agree that the changes made through the EU management committee relate to rotational crops such as corn, for which eligible land criteria have been modified, and that no improvement has been made for those who specialise in the tillage sector?
I will bring to the attention of the Minister the suggestions made by Deputy Cowen. If we have a favourable summer, production levels will be increased. Intervention corn is available to farmers and that acts as a safety net at present. I compliment the Minister on his initiatives to date in dealing with this sector. His actions are appreciated by the sector.