Dáil Éireann Debate, Tuesday - 13 February 2018
504. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which he remains reassured regarding the future of the cereal sector; and if he will make a statement on the matter. [7451/18]
View answerFirstly I wish to emphasise that I am very much committed to this very important sector which plays a key role in the development of the wider agri-food industry. Tillage is a key source of seed production, grain for the milling and malting industry and feeding stuffs for the livestock sector and as a consequence is a significant stakeholder in our agri-food industry from a supply/food safety and sustainability viewpoint.
Cereal production has experienced a few difficult years both in terms of grain price and weather conditions. Because Ireland accounts for only around 1% of EU production, grain prices here are very much affected by European and world market price shifts and tend to experience volatility. The current situation globally for the cereal sector is that it has experienced another consecutive year of high grain supplies which have again outstripped demand. These years of oversupply continue to exert a downward pressure on the market and this of course has had a negative effect on price to the grower here. Partly as a consequence, the annual cereal area has reduced in recent years. For example, in 2017 the national cereals area reduced by about 10,000 ha to 270,000.
However, I want to highlight the actions my Department is undertaking to assist this vital sector. In 2017 I introduced the €150m Agriculture Cashflow Support Loan Scheme and extended it through provision of national funding to cover the tillage and horticulture sectors. There was a very positive reaction by farmers, including tillage farmers, to the Scheme, which has proved that significant demand exists for low cost flexible finance. The “Agriculture Cashflow Loan Scheme” has provided a template for access to finance schemes, including the recently announced “Brexit Loan Scheme” for SMEs.
I am also examining a potential Brexit response loan schemes for farmers, fishermen and for longer-term capital financing for food businesses; for which my Department has secured €25 million of funding in 2018.
As a further support to tillage farmers I introduced the Tillage Capital Investment Scheme under TAMS II which opened for online applications on the 8 March 2017. The specific areas of investment include Minimum Disturbance Tillage Equipment, Sprayers, Rain Water Harvesting, Grain Storage and Grain dryers.
There has been a significant level of interest in investments by the tillage sector, with a total number of 775 applications received so far and 637 approvals. Over €1.38m has now issued in respect of 120 payment claims. Payments will continue on an ongoing basis. This is the latest of the Targeted Modernisation Schemes (TAMS II) to be launched under the Rural Development Programme 2014-2020. The Scheme is co-funded by the European Agricultural Fund for Rural Development (EAFRD).
Last year in response to the exceptionally challenging harvest conditions of September 2016 I introduced a Weather Related Crop Loss Support measure to assist farmers who experienced significant yield losses in spring cereal crops. This measure provides for a financial contribution of up to €200 per hectare up to a maximum of 35 hectares per eligible applicant towards the cost of uninsured spring cereals crop losses in excess of 30% by yield. Particularly hard hit growers who experienced cereal crop losses in excess of 50% benefit from an additional €100 per hectare, on the same area. A total of 167 applications for support were received in the Department by the closing date of August 26 and are currently being processed. To date payments totalling €314,032 have issued to 68 applicants.
While the challenges facing the sector at this point in time are real, in Ireland we can grow cereals with the highest yields in the world and this is an advantage we must press home and also look to exploit other areas under our own control. For example, my own Department provides a high quality official crop seed certification scheme to the industry in addition to an extensive national crop variety evaluation programme. I would also encourage tillage growers to fully implement the advice and research provided by Teagasc in relation to efficient and sustainable production of crops. My Department remains committed to assisting all involved in the sector to optimise efficiency and sustainability.
