Dáil Éireann debate -
Thursday, 12 Nov 1998

Vol. 496 No. 5

Written Answers. - Agricultural Schemes.

Eamon Gilmore

Question:

21 Mr. Gilmore asked the Minister for Agriculture and Food the proposals, if any, he has for measures to assist farmers arising from difficulties due to the fodder crisis and the collapse of a number of international markets; and if he will make a statement on the matter. [23098/98]

Minister for Agriculture and Food (Mr. Walsh)

The fodder scheme which I announced recently will provide financial assistance to help alleviate the losses incurred due to the fodder shortage. A sum of £10 million is available overall. Sheep farmers with mountain grazings and suckler cow producers and small dairy farmers, with milk quotas of less than 35,000 gallons, in the worst affected areas of counties Cavan, Clare, Cork, Donegal, Galway, Kerry, Leitrim, Limerick, Longford, Mayo, Roscommon and Sligo will receive assistance. The areas concerned have been identified as the worst affected in a Teagasc survey completed in September and payments under this scheme will commence as soon as the necessary clearance is received from the EU.

The payments will be made automatically by reference to the 1998 sheep headage and suckler cow application forms, or on specific application from dairy farmers. Up to £300 per farmer will be payable and this will provide immediate assistance to those most affected.

In regard to difficulties on international markets I have been concerned about the implications of this situation, especially in the Russian market. In early September I made strong representations to the Commission for a range of measures to be put in place. I am pleased that the Commission has responded favourably to my request and has introduced the following measures: a 21 per cent increase in export refunds which is worth an extra 9p/lb; a widening of the intervention support through an increase in the eligible carcase weight limit to 360kg and the inclusion of the 04 grade — this has increased eligibility of our steers from 15 per cent to almost 50 per cent; and an increase of 40 per cent in the processors margin for cattle going into intervention.

I succeeded in reopening the Iranian market which was closed to Irish beef since 1996.

These market support measures have stabilised prices and indeed there are indications of a recovery in the market. However, there is scope for much further improvement in view of the 9p/lb increase in refunds, the flexibility of the intervention arrangements and the relatively strong market prices on the EU continent.

I wish also to point out that the income position of producers will also be assisted this autumn as a result of the Commission granting my request to increase the advance of the premium payments from 60 per cent to 80 per cent which is worth £45 million. This will help the cash flow of producers, particularly those who are experiencing fodder shortages due to the wet summer. Many of these latter producers will also benefit from the fodder aid package which I have already referred to.