Vol. 482 No. 8
18 Mr. Coveney asked the Minister for Agriculture and Food the proposals and timeframe, if any, he has for alleviating the severe income losses and grave hardship caused to some cereal farmers as a result of the disastrous 1997 grain harvest, particularly in the south and south-east. [19539/97]
A small number of producers of cereals and other crops were severely affected by weather-related crop losses this year. Details of a scheme to provide assistance are being finalised in my Department and I hope to make an announcement in the very near future.
In the case of cereal producers, my first priority was to expedite payment of EU area aid, which this year will amount to some £95 million. I am pleased to indicate that 94 per cent of these payments had issued by the end of October. More have issued since then and only a relatively small number remain to be paid. I have also decided to increase the national element of compensation for agri-monetary losses to cereal producers from £0.8 million to £1.6 million.
I need hardly tell the Minister of State who was very vocal on this issue that the combination of a large price fall and dreadful weather in August has been disastrous for cereal growers, particularly those in the south and south east, especially in Wexford, Cork and Waterford. Will the Minister of State confirm if a sizeable compensation package will be available and, if so, can he indicate the amount of that package?
There is widespread concern among cereal growers that the brief given to Teagasc confines it to looking only at cereal growers who have not harvested because of the condition of their crops. Many farmers tried to harvest in practicably impossible conditions. Will these be allowed to make a case? I am not seeking a decision on the final outcome of such cases, but people who tried to harvest their crops are facing real hardship. Their efforts seem to have precluded them from compensation because of the brief given to Teagasc.
The Government has an opportunity to return money to grain growers who suffered by using the national green £ revaluation matching the EU funds. This would amount to a maximum of £3 million and is within the discretion of the Government. I would like the Minister to say whether there will be a compensation package; how much will it amount to; whether the Teagasc brief will remain as restrictive as it appears and whether a green £ revaluation aid to the cereal sector will be considered?
I have already referred to an increase from £0.08 million to £1.6 million regarding the green £. The prolonged period of broken weather in August — and the Deputy must agree there was a very difficult period in the first days of August in the south east and that much damage was done to crops — resulted in the most difficult harvest period for many years. Freak weather conditions in south Wexford, Waterford and south Cork caused severe damage to many crops, some of which were not capable of being harvested. While national yield was the second highest since CAP reform at an estimated 1.9 million tonnes, quality in general was below normal with spring sown crops being worst affected.
Approximately 15,000 applicants will be paid area aid and the average payment will be approximately £6,000. Most of it has been paid. This is an average of £111 per acre. The average price for barley, wheat and oats crops will be in excess of £75 per tonne according to the information available to us. Wheat prices will probably be much higher than this while oats prices will be lower and barley prices will be in between.
At present departmental approval is being sought for the compensation package. The Deputy is aware a supplementary estimate will be brought forward in the House tomorrow. We will then be in a position to detail the amount of money being made available to cereal producers. I know the Deputy will not be disappointed.
Can the brief of Teagasc be extended to include farmers who made an attempt to harvest their crops?
The Teagasc report has been with the Department for some time. Teagasc worked on the brief given it. The Deputy is also aware that many meetings took place between the Minister for Agriculture and Food, Deputy Walsh, and the banking institutions which were sympathetic. Much support work has been done by the Department of Agriculture and Food and the Minister. We are very committed to supporting cereal producers who form part of the economic fabric of agriculture. It is vital they are successful. We have done everything we can. The Teagasc report has been concluded. It mainly concerned uncut crops of which there was a substantial number.
I appreciate the Minister's reply. Effectively, he is saying those who were badly affected but did some harvesting will not be considered for compensation. If this is the case then it is unfair and inequitable to exclude those who tried to harvest but failed to get a return.
The Deputy knows the farming business as well as I do. Many crops were not fit for harvesting because of weather and ground conditions and the inability of farmers to work with machinery, even with double wheels. People who experienced those kinds of harvesting problems will be looked after. In other areas, I can only work from the information available to me. The figures I have provided state that the average price for the three major crops is in the region of £75 per tonne. The price for wheat is higher than that figure and that for oats is lower. We are satisfied that there was quite a good outcome to this harvest; practically all of the grain was harvested in wet conditions. Teagasc has assessed each case where crops were uncut. Reports have been made available and we must await tomorrow's outcome.
The time for priority questions is now concluded. Question Nos. 19 and 20 which are priority questions may now be taken in ordinary time.
