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Suckler Welfare Scheme Payments

Dáil Éireann Debate, Tuesday - 13 February 2018

Tuesday, 13 February 2018

Questions (36)

Charlie McConalogue

Question:

36. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine to outline his views on a €200 annual payment for suckler cows under the RDP scheme to ensure the sustainability of the national herd. [7151/18]

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Oral answers (4 contributions)

What are the Minister's views in respect of the necessity for an annual €200 payment per cow for our suckler cow herd? It is under tremendous pressure, with numbers are dropping by the day. We also see the potential impact of the Mercosur agreement, to which it looks like the Government is going to have to acquiesce in regard to the 70,000 tonnes.

Another factor is Brexit and the fact that 50% of our beef goes to the UK. As the Minister responsible, I am interested in hearing his proposals and thoughts on trying to provide supports to ensure that this important sector is maintained.

I am aware of the importance of the suckler sector to Ireland's rural economy and the wider agrifood industry. My Department provides a range of income and investment supports to suckler farmers, including direct payments and grant schemes such as the basic payment scheme, the areas of natural conservation, ANC, scheme, GLAS and TAMS, as well as the beef data and genomics programme, BDGP. Analysis of Teagasc national farm survey data shows that existing direct payments to suckler farmers provide support equivalent to approximately €500 per suckler cow.

The BDGP is the main support specifically targeted for the suckler sector, which provides beef farmers with some €300 million in funding over the current rural development programme, RDP, period. So far, approximately €125 million has been paid out to farmers, and I will continue to support that through the lifetime of the RDP. In addition to improving the environmental footprint of the national suckler herd, the programme will, through increasing the genetic merit of the herd, make a positive contribution to productivity and efficiency at farm level.

Ireland has been a strong supporter of the greater market orientation of the Common Agricultural Policy, CAP, over recent reforms, including by decoupling payments from production, because allowing farmers freedom to respond to market signals is vital for the sustainable development of the sector, as set out in the Food Wise 2025 strategy. As the Deputy is aware, any proposal for a coupled payment for suckler cows under Pillar 1 of CAP would require a linear cut across the basic payment scheme for all farmers. In terms of providing additional supports under Pillar 2, which provides for Ireland's RDP, there is no surplus funding above and beyond the funding already allocated to the RDP, which has been committed to existing schemes within the programme.

In the context of CAP post 2020, we must examine the most effective way of supporting the sector while being aware of the future direction of CAP in terms of public good and environmental benefits. We need to examine further ways in which we can improve economic and environmental efficiency while responding to the constraints of WTO and state aid rules in terms of farm supports.

Additional information not given on the floor of the House.

The future CAP will play a key role in the sustainable development of the sector, and I urge people to participate in the public consultation meetings on the post-2020 CAP that are taking place around the country.

I wish to be brief, as Deputy Gallagher has tabled an important question on penalty points for fishermen that we would like to have answered within time as well.

The Minister is coming up with every reason as to why support cannot be forthcoming and is not considering the matter from the point of view of ensuring that the supports required to sustain our suckler herd are put in place.

Regarding Mercosur, the Minister has indicated in response to parliamentary questions that the figure on the table is 70,000 tonnes and that his focus is on ensuring that it does not increase further. It will have an impact on our beef trade. In return for that, surely the Minister, when engaging with his European counterparts, should be determining what additional supports can be acquired so that our suckler and beef herds are protected and sustained. Something must be done. The Minister for Agriculture, Food and the Marine is overseeing a situation in which people are getting out of suckler beef farming and suckler cows are being sold. It behoves him to turn his attention to what types of support can be put in place to sustain the herd and to keep people in family farming.

I am also anxious to facilitate Deputy Gallagher, so I will be brief. It is important that we deal with facts. There is no exodus from suckler herd farming. Indeed, it was expected that with the lifting of dairy quotas, there would be a significantly greater exodus. The current figures show a reduction of in or around 6% in the suckler cow herd from just under 1 million to approximately 960,000. Most of that reduction has not happened along the western seaboard but in Kilkenny, Carlow, Waterford, which has the highest number, and Cork. That is mostly because activity is being displaced into dairy production. There is no mass exodus and it is important that we not talk ourselves into a crisis.

The Deputy has not addressed an interesting issue, namely, that I am constrained by funding. If we want to provide funding under Pillar 1, there will be a cut of just under 20% in every farmer's basic payment. I do not propose to do that, but it is unclear whether Fianna Fáil proposes to do that. Perhaps the Deputy will enlighten us.

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