Dáil Éireann Debate, Thursday - 14 July 2022
54. Deputy Joe Carey asked the Minister for Agriculture, Food and the Marine the measures that his Department is considering to address the cost-of-living crisis for farmers in the short-term; and if he will make a statement on the matter. [38237/22]
View answerI am acutely aware of the challenges facing our farm families over the cost of inputs and the cost of doing business.
Over the past year significant price rises have occurred primarily in the energy sector with natural gas and oil prices reaching record highs. These price rises have significant implications across all sectors, including the agri-food sector. These price rises have been amplified by the impacts of Russia’s illegal war in Ukraine.
Following a strong year for family farm Incomes in 2021, where average family farm income was up by 26% to over €34,000, Teagasc has forecast that a decline in 2022 is now highly likely, as output price increases will fail to offset the rise in production costs.
Significantly higher production costs will be a feature across all sectors in 2022, with higher fertiliser, feed and fuel prices leading to an increase in agriculture input costs. The current market outlook for output prices is uncertain, with significant upward pressure apparent, but this is unlikely to cover the additional input costs for many farmers.
I meet with stakeholders on an ongoing basis to discuss the impact of the Ukraine crisis on Irish agriculture and supply chains.
Earlier this year, I established the National Fodder and Food Security Committee and tasked it with the preparation of a response to the emerging crisis in feed, fodder, fertiliser and other inputs; and to developing contingency plans and advice to assist farmers in managing their farm enterprises.
I also established a Rapid Response Team within my Department, chaired by the Secretary General, to actively monitor the impacts on agri-food supply chains and to contribute to the whole of Government response.
Fertiliser merchants have indicated that there are adequate supplies of fertiliser in Ireland at present. However, there may be issues with availability of certain products at times and importers are active in securing alternative supply lines where necessary. Fertiliser affordability and availability is one of the biggest challenges facing our farmers at present.
There are sufficient supplies of animal feed at present and importers are actively competing on the global market to ensure that supply continues uninterrupted. Animal feed stocks and imports are being monitored on a regular basis by my Department.
Since the invasion of Ukraine started, I have announced a number of measures, valued at €91 million, to assist the agri-food sector including:
- €56 million Fodder Support Scheme
- €20 million in two packages for the pig sector,
- €12 million for the tillage sector and
- €3 million for the horticulture sector.
These targeted measures will help Irish farmers at a time of escalating costs and build resilience against the expected impact of the situation in Ukraine. €15.8 million of these supports, for the pig and horticulture sectors, are funded from the EU's exceptional support package to support the farmers most impacted by the crisis.
I and my Government colleagues are acutely aware of the challenges arising for farming households, businesses and the greater agri-food sector, and along with the measures targeted at the agriculture sector we have taken steps across the board at Government level to help address these. These include the increase in the living alone allowance, the package of electricity cost measures and the package for supporting fuel costs.
My Government colleagues the Minister for Finance and the Minister for Public Expenditure and Reform, when publishing the government’s Summer Economic Statement 2022 last week, indicated that Budget 2023 will be calibrated to balance the need to provide further supports with the need to avoid adding to inflationary pressures.
I continue to engage with all our stakeholders and continue to work across Government to respond to this crisis, using all of the tools at our disposal. We must protect our farm families and their businesses through this period of significant upheaval.
