I move:
That Seanad Éireann takes note of Report No. 21 of the Joint Committee on the Secondary Legislation of the European Communities: Crisis in Farming Summer 1985.
Last year we had quite an unusual situation whereby, in the main, adverse weather conditions caused a crisis in farming. The effectiveness of the Joint Committee on Secondary Legislation of the EC was demonstrated by their being able to address themselves to a problem that was causing severe financial hardship and a considerable amount of worry to large numbers of farmers in every part of the country. It was encouraging and quite an experience to find that the Joint Committee proved so successful in highlighting the worries of many people and being able to marshal the support and the advice of the many different interest groups and, at the same time, to channel their combined views not only to the appropriate Government Department but to the European Community as well.
The joint committee, when considering this subject, were conscious of the circumscribing limitations of their order of reference. While some of the areas covered can justifiably be held to be on the periphery of the Joint Committee's mandate, nevertheless, Community measures, particularly the Directive No. 268 of 1975 on mountain and hill farming and farming in less favoured areas, must place the subject well within the ambit of the orders of reference of the Joint Committee. This contention is fortified by the fact that the European Parliament itself considered motions on the Irish farming crisis from four political groups and adopted a compromise resolution that was subscribed to by all the Irish MEPs, from both North and South. I wish to place that resolution on the record of the House because it is very much tied up with the work of the joint committee.
I should like to quote Resolution No. 1 on Bad Weather in Ireland, as placed before the European Parliament:
(a) Having regard to the unparalleled crisis situation facing the farming community in Ireland, both North and South, following the disastrous summer weather of unprecedented rainfalls and storms,
(b) Conscious that a very high proportion of the Irish economy is directly dependent on agriculture — more so than in any other Member State,
(c) Aware also of the unprecedented devastation in many parts of the country to tillage crops and hundreds of animals killed following freak thunder, lightning and hail storms in July,
(d) Conscious that these disastrous weather conditions have led to the wholesale destruction of vital winter feed which cannot now be retrieved and to the drastic fall in livestock prices due to inevitable glut market conditions for cattle,
(e) Aware also of the disastrous losses in the cereal harvest, the destruction of the potato crop due to severe blight conditions and major losses suffered in the horticultural industry, all of which have resulted in significant reductions in farm incomes which cannot now be recovered,
(f) Whereas some individual farmers have suffered total loss of crops,
(g) Aware that Irish farmers are on average amongst the poorest in the Community and that this disaster will continue to aggravate their position for the coming years,
(1) Urges both the Commission and the Council to recognise the seriousness of the present farming crisis in Ireland;
(2) Calls on other Member States to demonstrate their solidarity by supporting special measures of assistance to Irish farmers both North and South;
(3) Urgently requests the Commission and the Council to grant emergency aid to the affected areas and to propose appropriate measures to reduce the social and economic consequences of the disaster;
(4) Instructs its President to forward this resolution to the Commission, the Council and the Irish and UK Governments.
This resolution was subscribed to by all the Irish MEPs, both North and South, and in its own way it underlined the serious view that so many people took of the situation and the desire of so many people to ensure that the infrastructures and the legislation that is available, not only in the home country but in Europe also, should be brought to bear to come to the rescue of so many people who suffered the consequences of last summer.
The report before the House was prepared for the Joint Committee by our sub-committee on agriculture and fishery matters. It certainly measures up to the high standard of expertise we are able to assemble on all our reports. We must be very conscious of the co-operation which we received from all the interested parties. The Joint Committee in this report have expressed their thanks to ACOT, the Irish Creamery Milk Suppliers' Association, the Irish Co-operative Organisation Society and the Irish Farmers' Association. These bodies also made written submissions to the Joint Committee which were very helpful and useful in the compilation of the report.
The Joint Committee had the benefit of both oral and written submissions from the Department of Agriculture. We are very appreciative of the Department's and the Minister's co-operation right through the entire problem.
The loss of greatest concern was that of fodder for livestock due to the prolonged heavy rainfall. While hay constitutes a decreasing proportion of winter fodder supply — currently about 40 per cent as against 60 per cent for silage — last year's widespread loss of hay and to a much lesser extent of silage quality, which was not so dependent on good weather for successful harvesting, poses a very real threat of a severe loss of winter fodder this year. Almost all of the larger, more progressive farmers across the country, have changed in recent times to silage making. But a large number of farmers, particularly the smaller ones, perhaps especially in the western counties, adhere to haymaking. In the south-western counties only about 20 per cent of the hay crop was secured and much of this proved to be of very poor quality.
Even in the midlands, where these losses were not as catastrophic, they have been severe. It is my experience that this year's quality of hay is very poor. One of the most alarming side-effects of this is the number of farmers who in the normal course of handling hay and feeding it to cattle are suffering severe bouts of influenza or respiratory diseases. This over the last number of weeks has been causing quite a problem on many farms. This has not been as bad since the difficult harvest of 1948, when hay was mouldy. It was not baled at that time and it was not so obvious a problem.
The north-western counties would be the most severely affected. In counties Mayo, Leitrim and Donegal about 70 per cent of the forage is hay. Weather conditions there are particularly bad. For the many farmers affected the loss of hay last year was, indeed, of crisis proportions. The lack of adequate fodder means they are having to sell off stock earlier than usual with consequent loss to farmers.
In an effort to relieve this serious situation the Minister for Agriculture announced, on 8 August last, a nitrogen fertiliser subsidy scheme and a subsidy for first-time silage makers at a total estimated cost last year in excess of £2.5 million which was met, we are told, from savings in the agricultural Vote. Given better weather, it was envisaged that the fertiliser would induce growth of grass sufficient to enable the farmers concerned to take a late cut of silage. That happened in some areas, but it was not possible in many others.
In the case of the cereal harvest, damage to grain from sprouting due to humid conditions in wheat was widespread. However, an improvement in weather conditions towards the end of the season enabled crops to be harvested. Yields were well below normal and grain quality was generally poor, especially in the case of wheat. There was, indeed, very little wheat paid for at the milling price. In all, 1985 was not a profitable year for tillage farmers. Most families engaged in tillage have carried severe losses into 1986.
The subsidies and grants for first-time silage were estimated to have attracted 15,000 to 20,000 farmers. I understand with regard to the fertiliser subsidy that about 10,000 farmers might have benefited from it. That is of significant help with the entire problem. We must be conscious of the prompt response of the Minister for Agriculture and the Government in this regard. It certainly softens the blow in most quarters. Of course, no matter how much money can be given on a national scale like that, it could never be sufficient to compensate for the losses and destruction. Nevertheless, it was well worthwhile. The Department's representatives gave the Joint Committee details of the rescue measures for the farmers in the Shannon valley. There are cash payments based on livestock units, with a maximum payment of £500 in any one case. The offer of Community grain was considered by the Government and organised. It has been of considerable benefit in the disadvantaged areas as well.
I would like to put on the record that I very much appreciate the fact that last year was the first time any Government came with financial aid to farmers who have been affected by persistent flooding in the Shannon valley. Regarding the flooding in the Shannon valley, on the western bank, where the farmers are all in the disadvantaged areas, they have whatever benefits can be taken from the larger grants. On the eastern bank, in Offaly, people do not see their land for at least five months of every year. That is no exaggeration. It just disappears in October and November, and with a little bit of luck it might reappear at the end of April or May. I want to compliment Deputy Deasy, the Minister for Agriculture, and the Government in general for recognising for the first time the plight of so many farmers, large and small, in that area. Up to a few years ago these people got absolutely no compensation or redress for the fact that they still paid rates on every one of those acres, while the rates were in force.
It has been well established that as a result of the bad weather the situation in Irish farming reached disaster proportions. That has been accepted, both nationally and internationally. The delegation from the Joint Committee who visited Brussels came away with the impression that this view was also shared at Community level. The case was copperfastened by the visit of the Commission's Director General for Agriculture when he visited Ireland on 11 September to make an on the spot assessment for Commissioner Andriessen. The delegates who visited Brussels came quickly to the conclusion that the Community Disaster Fund was not the appropriate vehicle to rescue Irish farmers, being limited in resources to approximately IR £2 million. Our delegation learned from Commission officials that the idea behind the disaster fund was mainly compensation for personal injuries arising from natural disasters. While it could be argued that the Irish farming situation, particularly in the Shannon valley, could justifiably be classified under this heading, the size of the fund ruled it out as being very effective.
Intervention is another area that could be invoked to aid the beef sector. Many farmers, when they did not have grass to continue on gazing their stock, were forced, in the earlier part of the summer or the earlier part of the autumn, to sell out. The joint committee understood that in the past intervention rules have been adopted on a regional basis in the Community to deal with specific problems. They urged that a similar course be sought for this country, as it was felt that at that time this could, perhaps, help to halt the side in beef prices and stabilise farm incomes. Most fair-minded people will recognise the achievements of our Minister for Agriculture in negotiating a helpful deal in that regard towards the end of the autumn and in making the testing regulations a little easier on the ordinary farmer.
The Joint Committee, acknowledged the advantage of intervention grain from the Community both as a relief measure to Irish farming and as a solution to mounting surpluses in the Community. This scheme could be very effective if low-interest Euro-loans were made available to purchase it. Underwriting of exchange risks and the waiving of handling charges by the banks would sharpen the impact of the scheme. The Joint Committee welcome the intention of the Government not to limit the application of Community grain to any one area, but hopes that this scheme will not be the only response to the farmers' problem. The release of the grain in the Irish market was something which the committee thought should be carefully controlled.
As regards the operation of the scheme, the Department, the Minister and his officials deserve the thanks of all concerned. They have done an excellent job in a very short time. It demonstrates the flexibility within the Department to be able to handle and take on board fairly substantial schemes at the shortest of notice. Our thanks are due to the Minister and his officials both at headquarters and, indeed, at county and regional levels. At Community level the grant of FEOGA schemes should be examined with a view to seeking a balanced solution to the problems in farming, which has fallen victim to unprecedented weather conditions.
The joint committee are convinced that no single measure will provide an adequate remedy. The problem must be attacked on several fronts. The Irish economy, as an integral part of the Community economy, is still heavily dependent on agriculture, accounting for up to 40 per cent of our exports. Confidence in Irish agriculture has been badly shaken. The Community should do all it can to restore this confidence. A big problem in Irish agriculture has been the shrinking profit margins, and with a disaster such as the weather imposed on the industry last year nobody can be blamed for this problem. Since farming in the main is in the realm of the self-employed, medium term policies should be introduced to give the industry the lift-off it needs. One of the greatest problems with aid in a disastrous situation such as this — and one the Department handled quite adequately — was being in a position to pinpoint the enormity of the situation. Despite the magnitude of the problem facing farmers last summer many managed to save their crops and provide fodder. The problem is that in looking at the situation now a considerable percentage of fodder is of an inferior quality. The experience of many farmers is that the cattle prefer the barley straw being used for bedding purposes in preference to the hay. That is an indication of the losses farmers will suffer because straw is only providing fibre. Farmers who cannot feed adequate fodder this year will not achieve satisfactory weight gains in their herds.
The Joint Committee feels that there are many lessons to be learned from the experiences of last summer. The farmers over-relying on hay instead of switching to a higher percentage of silage and the outwintering of cattle caused serious problems. While the farmers could not have anticipated the unusual severity of the weather, it must be acknowledged that many farmers are ill-equipped to deal with it. Group and co-operative fodder schemes must now be a high priority. Drainage schemes with the aid of Community funds must also be considered in the long term, and extended and pursued with renewed vigor in order to prevent or lessen the impact of disasters such as that which befell the Shannon valley. The drainage of the Shannon valley is a subject I do not wish to go into, because elections have been won and lost on it for the last 50 years. Nevertheless, there is an underlying problem. At least the farmers do not have to pay rates on those lands. We look forward to a very fair and understanding system when the officials come to adjust the acres for the proposed land tax. The fact that this land is submerged for several months of every year will, indeed, be taken into account.
The committee have noted the galvanising effect that the farming crisis has had on farming organisations and are reassured by their unity of approach to the problem. They agree that the measures to deal with the problem were well co-ordinated through the ACOT offices. Our committee, while not wishing to stray outside the terms of reference, think that it would not be injudicious to refer summarily to the non-Community measures which were advocated by farming bodies in their submission. Those included the social welfare payments and the use of unoccupied factory space for fodder storage. Perhaps when all the agencies are not under pressure, as they were at the end of 1985, it might be an idea at some stage to look at the problems and see how all those infrastructural facilities could be put to use in the interest of the community as a whole.
I compliment and thank the Minister for Agriculture and the Government for addressing this problem and recognising the plight of so many farmers last year and for allocating considerable funds to alleviate the hardship. Government measures were successfully introduced last year. On 8 August, the nitrogen fertiliser subsidy was introduced at the rate of £35 per tonne of high nitrogen fertiliser. This was made available to farmers who purchased the fertiliser between the first week in August and the end of August. The only restriction in the scheme was to limit it to farmers with not more than 30 cows or 50 cattle. Despite some gloomy forecasts, 24,000 applications for the subsidy were received. The vast bulk were paid at a cost of over £600,000 to the
Exchequer. The second national measure was the silage subsidy at a rate of £4 per tonne, subject to a maximum of 50 tonnes per farmer in respect of silage made before 8 November on farms where silage had not been previously made.
The response to the scheme exceeded the expectations of the Minister and his officials. Over 30,000 farmers applied for the subsidy. Over 9,000 applicants were paid before the end of the year. The cost of that scheme exceeded £6 million. The original estimate was very much smaller. On 6 September arrangements were announced for the payment to farmers in the Shannon valley affected by the floods of the sum of £20 per livestock unit up to a maximum of 25 livestock units per farmer, with a maximum payment of £500. These payments were very welcome. It was the first time that any Government recognised the problem of the long-suffering farmers in the Shannon valley. They certainly proved helpful to many of them. I am not saying that the amount of money provided met the cost of the losses, but at least it was a help. It certainly showed that the Minister and the Government recognised the difficulties of those farmers. Payments were confined to people mainly dependent on farming with not more than 60 livestock units. Special arrangements were made for those who suffered crop losses from flooding, so that they too obtained payment subject to an overall maximum of £500. I understand that around 1,700 applicants under the scheme have been paid a total of over £500,000. Those applicants will also be eligible to participate in the feed voucher scheme. The Government also made special arrangements to bring forward last year's payments of the headage grants under the various sheep and cattle schemes. These arrangements resulted in a total of £26 million more being paid in 1985 than in 1984.
The most important measure, however, was the introduction of the feed voucher scheme over the whole country which enabled farmers who have a serious shortage of winter feed to buy feeding stuffs. This scheme has worked exceptionally well in my constituency. It was based on £13,250 million from the Exchequer and 125,000 tonnes of intervention grain at 75 per cent of the intervention price from the EC, which was valued at £4 million. Under the scheme farmers have received cash in grain vouchers which were exchangeable against the purchase of animal feeding stuffs from grain and feed merchants, subject to a value of £400 in any one case. Almost 100,000 farmers applied under this scheme. Most of them were proved eligible.
The Minister extended the 30 day bovine TB test to 60 days. That in itself greatly faciliated many farmers who were anxious to sell bullocks in the marts and it gave them the opportunity of showing their cattle at more than one mart.
I welcome the announcement by the Minister just last week of the introduction of a scheme for tillage farmers under which loans subsidised at the rate of 5 per cent will be made available to tillage farmers who suffered severe losses as a result of the bad weather. This will cost around £2 million. What compounds the losses of the grain farmers and tillage farmers is the fact that such a high percentage of them borrow or, as was always traditional, purchase their grain and fertilisers on account. Last year when the harvest itself was not able to pay off the initial cost of sowing, that expense comes through. While this latest facility being offered by the Minister is not really a direct cash grant, it will ease the burden of farmers who have to again this year borrow in order to sow tillage crops on their farms.
I should like to compliment the Minister on his powers of negotiations and on the continuation for a further year of the interest subsidy scheme which has proved so beneficial for thousands of farmers over the past number of years. One thing evident in regard to the work of the Minister for Agriculture is the persistence of some farming organisations who do not seem to be able to quantify the amount of aid going into agriculture under the various headings. The total Exchequer expenditure on agriculture, if we take 1980 as a base, amounted to
£3,752 million, whereas this year under the same heading we find that £6,827 million represents the total Exchequer expenditure on agriculture. That figure has gone up. Looking at the hand outs that the IFA have been distributing at recent meetings one would think that there were diabolical cut-backs all the way. I would like to avail of this opportunity to invite colleagues in the farming industry to look at the actual figures and to ascertain the true facts for themselves, because, by and large, I think the response of the Minister for Agriculture and the Government in the difficult year just gone by for Irish farmers has been positive, helpful and has shown plenty of understanding. It has been accompanied by a great personal response and understanding from the Department officials, whether the farm development service officers or the officers employed by ACOT. Together they worked exceptionally well to provide as much aid and encouragement as possible to assist farmers in every way they could. The difficulty last year, as a result of the adverse weather conditions, brought about a situation in our country that no Government, by Irish standards anyway, could afford to underwrite 100 per cent. Nevertheless, the amount of funds made available without the introduction of a mini-budget was remarkable. I would like to put on record my thanks and appreciation to the Minister and his colleagues in Government for the efforts they made.