I have listened with great interest to the speeches on this important motion. I compliment Senator Ferris and his colleagues for giving the House an opportunity to consider in such depth the crisis that is not just in the west but throughout the country. All Senators have clearly indicated the magnitude of the problems facing many farmers in every county. They are not confined to the west or to any area. I wholeheartedly welcome the amount of aid and assistance the Minister announced to the House last night but I believe it is not possible to compensate people for losses arising out of the weather, flooding or the lack of growth. Any Government — when we speak about any Government we are talking in the final analysis about the taxpayer — can offer only a measure of relief to persons who are most affected by these conditions. Senator Fallon decried the measures that the Minister announced as absolutely inadequate and as too little too late. I come from a constituency which is on the east side of the Shannon and this is the first time in the last six years — and elections were fought and won on draining the Shannon — that any Government have given a sixpenny bit to farmers whose land is flooded for at least five months of every year. Prior to 1977 they did not even get a waiver of rates although they could not see their land for five months of every year. That is the reality and that is why I welcome the Government's announcement. I appreciate that it is not possible to compensate people for the huge losses sustained, especially those who lost hay. Farmers have not been able to get silage and those who got first cuts where the soil was bad or wet were not able to go in for a second cut.
Some Senators have called for a doubling of the headage grants in the west but I would prefer to see the Government seriously considering bringing forward the headage payments one year to the newly designated disadvantaged areas that are as equally disadvantaged as the places that have been enjoying those grants for a number of years. I do not think it is appropriate to try to confine this debate to a small proportion of the country because the losses for every kind of farmer have been crippling. I hope the Government will continue to try to find new ways to assist people, especially tillage farmers. That can be brought about with co-operation.
It was disapointing to hear the reaction of the farming organisations and to listen to the invective of the leader of the IFA. I do not think it is possible for any Government in a country like ours to meet the demands of people like that. In a campaign earlier this year it appeared that farmers were being asked not to contribute to the national coffers in any way. Yet, when a disaster like this occurs the same national coffers are expected to come up with substantial funds. The Government have done a good day's work in endeavouring to meet some of the problems of some of the people.
Senator O'Toole dealt at length with the western development package announced some years ago. I hope that the farmers in the west have been able to milk that scheme, to take it up but, of course, that is easier said than done because to avail of all those schemes individual farmers must be able to make their own contributions to them. That is not always easy. Most of the debate on this motion has been confined to the Shannon basis and the River Shannon, but that was not the only river that flooded its banks. The Nore valley, the Barrow valley, and every other valley in the country, have had four and five feet of water on thousands of acres of land in their catchment areas this year. It is unfortunate that the call for aid in the main has been concentrated on the Shannon area which, of course, is a very specific problem. It is an ongoing one although this year it is certainly much more acute. It is not sufficient to have sympathy for the people whose incomes for the coming year have been wiped out.
I welcome the aid the Minister for Agriculture has announced. It will be welcome especially in Offaly where the Shannon damages many farms every year. I welcome the £20 million package that will aid up to 60,000 farmers in one way or another. The Government financing will be relief at a rate of three to one. Over the last decade we have got used to trying to match the aid from the European Economic Community. The £6 million grain subsidy will certainly be a help to the many farmers who are trying to maintain their livestock numbers over the winter months. I know that over the past few weeks in many areas it has been possible to bring in some of the hay and put it into cocks in the traditional method, but the feed value of that will be very questionable, if there will be any value in it at all. It will certainly provide roughage and, therefore, if the grain subsidy and the amount allocated or offered to each farmer can be and is taken up, it will be able to assist people to maintain and sustain as many livestock units as possible over the winter months.
In addition, we have the £1 million cash subsidy paid direct to farmers in the Shannon valley and I should like to place it on the record of the House that this is the first time farmers east of the Shannon whose land has been flooded to the same depth as the land on the other bank have got any sort of a blue farthing from any Government. I know it is not enough but it is a help. It is at least an indication that the rest of the population sympathise with the farmers. I do not know how one can take measures against such a disaster and, thankfully, we do not have as many natural disasters as they have in other countries.
Senator O'Toole mentioned the fertiliser and silage subsidy. I know it is not a lot, but it encourages people. The silage subsidy has encouraged more than 6,000 new farmers to make silage for the first time this autumn. That, in itself, is an improvement and it has been worthwhile. It is not so much that they have been paid to take on silage making, but it was an inducement and may have met some of the costs, because making silage is an expensive business. It is an expensive fodder. The ratio between hay and silage should be in favour of the 60 per cent silage made at present.
The 125,000 tonnes of grain negotiated by the Government will make a significant difference this year and I know that the Minister will want to maintain a balance so as not to adversely upset the market as can very easily be done between the east and west of the country.
I believe the Government are responding to the predicament of the farmers and I hope the present relief will aid farmers, large and small. It will certainly be a substitute for the feed problem during the coming winter. However, I do not think sufficient thought has been given to the possibility of coming to the aid of people who have incurred huge losses in the line of cereal production. It is accepted that the pea crop was literally wiped out this year. The cost of growing peas and the husbandry attached to it is quite exceptional. Similarly, the losses in the oil seed rape crop are very significant, but in those two areas we are talking about a small number of tillage farmers who specialise in those areas. Their losses are considerable, in absolutely thousands of pounds. Similarly, those in grain this year suffered. A young farmer who, perhaps, paid £100 for 50 or 100 acre of conacre to set barley or wheat will suffer losses this year running into thousands of pounds. They must be carried over. That is why I sincerely ask the Minister for Agriculture not to consider this as a final package.
The problems of the tillage farmers right across the country are severe. People do not realise the costs involved in tillage farming, for example, oil, interest payments, seed, manure and sprays. A considerable amount of money is spent in this area. If the costs are not met, they are carried forward. I should like to compliment the Minister on his efforts to get the banks to continue the interest subsidy scheme for a further year. I hope the banks will accede to the Government's request to them to do so.
The potato crop this year was disappointing. Farmers sprayed potatoes two, three and four times and the yields are disappointing, most of the tubers seeming to be damaged. There is a cross section of farmers in costly production all adversely affected in the eastern part of the country. This will have considerable repercussions over the next year or so. How can the Government find a way to ease the problem for so many people who have incurred huge financial losses? Nevertheless, it must be possible to solve all problems. I earnestly ask the Minister to see in what way the burden can be eased even a little, to give hope to people who find themselves in dire financial straits as a result of the weather alone.
Due to the lack of sunshine which ever-body missed, it is estimated that the yield from beet, which harvest only starts next week, will be down 20 per cent on last year. Similarly, from earlier tests the beet sugar content is down six or seven points on the national average over a number of years. This, of course, will mean that the amount of money accruing from that crop will represent a considerable loss in an area of farming which has very high overheads. Due to the fact that the ground is so wet it will be extremely difficult for farmers with low-lying land to harvest the crop. The agricultural sector at present are undergoing great difficulties. It will be extremely hard for farmers to survive. Therefore, we ask for the greatest co-operation between all the various agencies serving agriculture to try to salvage as much as possible from the present situation.
One of the benefits of this debate was that we were able to hear from practically every part of the country an up to date account of the difficulties facing so many people. From that point of view, it will be of benefit to the Minister and his officials in their efforts to monitor the situation and see in what way they can bring aid or succour to those most affected. It is appropriate that the Seanad should discuss this important problem and our thanks are due to our colleagues who put down this motion. I hope the Minister and the Government will be able to adopt many of the ideas and suggestions put forward.
I know that ACOT, the co-operatives and Department officials have been giving an excellent service and their prompt response to the problems rightly has been very favourably commented on. I have every confidence in the Minister for Agriculture who has been able to assimilate the problems and come up with a package that will be of great benefit to many people. I do not think anyone expects to be fully compensated for the problems and setbacks he has experienced this year. Nevertheless, it is important that every effort should be made to give people hope, so that they may continue in the business of farming.
I was interested to learn last week that the Central Bank have announced some coming changes in the movement of capital. It would be an appropriate time for the Minister at this stage to see if it would be possible to introduce capital into this country by way of loans at European rates so that our farmers, especially those who have been severely damaged by this season, would be able to avail of loans with interest at 4 per cent and 5 per cent, such as European farmers have at their disposal. I know that the big problem lies in guaranteeing the various interest rates on the hard currency and repayments. Nevertheless, the situation is so difficult in every part of the country that the Minister should do his best to see if a special arrangement can be made to meet the specific problems of this time.
I was disappointed that some of the people who contributed to this debate availed of the opportunity to make political swipes of one kind or another. I know it is part of the job here, but the problem is so serious that we must be aware of the great difficulty. I compliment the Minister on being able to find the £20 million and hope that he will be able to get a greater measure of relief from the EC. From our own resources, it has been excellent to find so much money which I know is only a drop in the ocean having regard to the losses incurred by individual families and farmers. It is a measure of the Minister's interest and his answer to his responsibility that he found this package that will be of tremendous benefit to the people who are experiencing difficulties with winter feed. The outstanding problems rest with tillage farmers and I hope that at the very least the Minister will be able to come back to the House with some way of easing their financial problems. Merchants charge 2½ per cent per month interest on the cost of seed, fertilisers and sprays. If this interest is added on for a full year it will be a sizeable blow to the capabilities of farmers to recover from this difficult year.
At the best of times, there is one bad season in every five when not much profit is made. This year everybody makes a substantial and devastating loss. That is the kernel of this problem. I wish the Minister well and I hope the Government will continue to look at this situation because it is not going to go away with the season. The summer is gone but the damage is there. The autumn is with us and as we move into the winter all these things will tend to increase the pressure that farmers will feel.
The cattle problem is critical. If the Government feel that they can extend the 60-day test to heifers, then it will be very welcome. Even as it is, with a 60-day test for bullocks and with dealing with TB, it certainly will be of benefit to farmers who want to sell. It gives them an opportunity of shopping around and seeing the way the market is going at a number of marts. It is a help and a step in the right direction, as is the fact that the Minister is speeding up the payment of all the headage grants, calf subsidies and the suckler cow scheme. In our area the inspections must be well under way or almost completed. That, in itself, is something many farmers welcome. While individually they may appear to be small concessions to the farmer who finds himself with no income this harvest, with nothing to come from any source, the early payment of these grants is important. If the Minister ensures that every grant outstanding will be paid as a matter of urgency, he will do a great service in giving some sense of relief to the farming community.
I would like to compliment the Minister and express confidence in the package that he has offered and is providing. I express the hope that it will be possible to do something on somewhat similar lines for, or in some way to come to the aid of the tillage farmers right across the country.
