May I share my time with Deputy O'Hanlon?
Adjournment Debate. - Alternative Farm Enterprise Schemes.
Is that agreed? Agreed.
Alternative farm enterprise is something which has often been discussed and which will need to be discussed in future given the trend in farming. With the change in farming patterns over the past number of years where dairy cows, pigs and poulty were put into intensive units, there was a need for alternative farm enterprises. I suppose we could say that we have not been successful to date as regards the choice of enterprises. However, I am not critical of the Department because it is a case of never venture, never win.
Rabbits were one of the first alternative farm enterprises which came on stream. I was very involved in that because there was a good return for breeding stock. A processing plant was set up in my constituency which was heavily grant-aided, but it was not commercially viable. A person who had spent all his life in the poultry business said to me that rabbit production would never be a commercial enterprise and he was right. Such ventures and projects should have received more in-depth examination. The same applies to deer farming where people made substantial outlays. There is a substantial number of deer farms in County Monaghan which enjoyed good returns when breeding stock was being developed. However, it is doubtful if they will remain commercially viable. Due to the size of the outlay involved, the Department should provide assistance in the form of headage payments or in some other way to people experiencing hardship.
I was concerned last week when a Deputy on the Government side used the trouble being experienced by the people to whom I referred to criticise a person who did much for agriculture and politics in the past. The Deputy attempted to use the person in question who has now left the political scene, as a scapegoat in this case. However, it did not work.
During the past number of months Teagasc published a booklet by Tony Leavy entitled The Rural Economy. Mr. Leavy and his associates produced a report which listed a number of alternative farm enterprises including forestry on marginal land and the propagation of intensive crops such as seed potatoes, tree nurseries and soft fruit on good agricultural land. The Minister of State should encourage the Department to begin a serious investigation into this area. In recent years I promoted seed potatoes and soft fruit and the Department should examine the viability of such crops because there could be an outlet for them in Ireland.
Mr. Leavy's book also stated that 50 per cent of farms in the west are at risk unless an on-farm system is introduced. In America, the agricultural authorities launched a campaign to promote potatoes as a quality health food. Such action helped the economy and provided massive employment in the fast food industry. A great opportunity exists in Ireland for the propagation of new and seed potatoes.
A good opportunity also exists to grow soft fruits due to the development of plastic tunnels, etc. and create job opportunities in this area, particularly when it is considered that these fruits are required for the manufacture of yoghurts. The Departments of Health and Agriculture, Food and Forestry have engaged in promoting fruit and vegetables because Ireland is the lowest consumer of such foodstuffs in the EU. I ask the Minister of State to examine these areas.
I support the case made by Deputy Leonard. Due to time constraints, I will deal only with the question of deer farming. I share people's concerns that many deer farmers have discovered that their enterprise is viably suspect.
I ask the Minister of State to take two initiatives. He might use the economic unit in Teagasc to investigate deer farming in Ireland and take appropriate action to ensure that deer farmers do not face financial ruin. For example, support could be provided by way of headage payments or some other action. Those involved in deer farming entered the industry on Government advice that people should consider alternative enterprise. Many entrepreneurs who became involved in deer farming have now discovered that it is not viable.
I thank Deputies Leonard and O'Hanlon for raising this issue. In response to Deputy Leonard's request for the inclusion of soft fruits and seed potatoes under the alternative enterprise scheme, I must inform him that this matter is being successfully dealt with by An Bord Glas. I agree there is very good potential in both areas. Ireland is almost self-sufficient with regard to potatoes following two bumper harvests in recent years. We are also producing many seed potatoes. A number of years ago we imported ware potatoes whereas we now export them. We have also cut down on the importation of seed potatoes and the advent of brown rot disease will probably encourage Irish farmers to produce their own. At present, An Bord Glas is providing assistance to people involved in those areas. Last year the soft fruit industry enjoyed a very good season.
There are a number of deer farming enterprises in County Kerry and I agree with Deputy O'Hanlon that deer farmers face a challenging and difficult time. The Department is currently examining the possibility of extending the headage grant system to cover deer farmers to provide some assistance. A decision has not been made but I will pursue the matter because I share the Deputy's concern in this regard. Many deer farmers face financial ruin because the situation is so bad.
The development of alternative farm enterprises is part of the response to the reforms of CAP and GATT. Under the Operational Programme for Agriculture, Rural Development and Forestry, 1994-99, my Department operates a number of schemes which encourage farmers and other rural dwellers to develop non-EU quota controlled enterprises. These include the alternative enterprise, agri tourism and organic farming schemes.
The alternative enterprise scheme was launched in December 1994, and follows a similar scheme which operated from 1989 to 1993. It applies mainly to investments in sport horses, deer, greyhounds and other non-EU quota species including rabbits and goats. The development of these alternative enterprises are of relatively recent origin. For example, the total Exchequer expenditure in the 1989-93 programme amounted to only £11 million compared with planned Exchequer expenditure of £22 million under the current programme.
The scheme has been remarkably successful to date. Some 3,600 applications have been received of which approvals issued in respect of some 1,900. This represents an overall total investment of £15 million and a grant commitment of £7.2 million. The main sectors of investment have been deer and sport horses. The development of agri-tourism has been a feature of alternative enterprise in recent years and will continue to be one of the significant features of farm development in the future. Under the current OPARDF a new agri-tourism scheme was launched in March 1995. Since then, some 105 projects have been approved representing a total investment of around £5 million with a grant commitment of some £2.4 million.
Aid is also available for the development of organic farming. Some £1 million will be available up to 1998 to aid (i) grading, packing and distribution of organic produce and (ii) recognised bodies, including Bord Glas and An Bord Bia, in the marketing and promotion of organic bodies. In 1995 there were 370 registered organic growers and the target is 600 by 1999. Indeed this target is likely to be exceeded because of the extra incentive available under rural environment protection scheme — REPS. This dovetailing of different schemes has the desirable result of increasing the effectiveness of both schemes.
Other measures under the OPARDF and the CAP reform accompanying measures, including farm afforestation, are also making a significant contribution to farm diversification and the underpinning of agricultural incomes.
As with any commercial development, difficulties have been experienced in the development of a number of sectors, in particular in the rabbit and deer sectors. Both sectors were mentioned by Deputies. In the rabbit sector the downturn in export demand was the major problem.
The development of deer enterprises was initially led by breeders, supported under the alternative enterprise scheme. It is essential, therefore, that this sector develop and market venison. In this regard assistance has been available to producer groups.
The various schemes promoting diversification are kept under constant review by my Department. Furthermore, the operational programme for agriculture, rural development and forestry provides for a mid-term review of the operational programme and at individual measure and sub-measure levels. This review will be held in the second half of this year. A detailed review of the appropriateness and effectiveness of the various schemes contributing to farm diversification will be part of this process.
The Dáil adjourned at 9.20 p.m. until 10.30 a.m. on Thursday, 25 April 1996.