Dáil Éireann Debate, Thursday - 20 April 2023
89. Deputy Violet-Anne Wynne asked the Minister for Agriculture, Food and the Marine if a rescue package for the sheep sector can be set up through the Brexit Adjustment Reserve fund with respect to the extreme financial pressures being faced by sheep farmers in Ireland; and if he will make a statement on the matter. [18589/23]
View answerCan a rescue package for the sheep sector can be set up through the Brexit adjustment reserve, BAR, fund with respect to the extreme financial pressures being faced by sheep farmers in our country?
I thank the Deputy for raising this important question. A vibrant sheep sector is an integral element of a balanced regional economy and sheep farmers are committed to producing a world-class, safe and sustainable product. Although there has been a solid and sustained increase in average sheep prices since the end of February, I recognise that sheep farmers are experiencing more difficult market conditions in 2023 than in recent years.
Market prices are obviously a commercial matter to be bargained between suppliers and buyers and Government has no role in determining commodity prices in the sheep sector. However, with hoggets crossing €7 per kg and lambs exceeding €8 per kg, it is heartening to see markets returning better prices than at the start of the year.
To bolster the sustainability of sheep farming, my Department provides significant support to the sector under the CAP strategic plan, CSP, both through a new targeted scheme for sheep farmers: the sheep improvement scheme, SIS, which aims to improve sheep health and welfare; and through the broad range of schemes in the CSP.
On the Deputy's specific point regarding the BAR fund for the sheep sector, this provides financial support to the most affected member states to counter the adverse economic, social, territorial and, where appropriate, environmental consequences of the withdrawal of the UK from the EU. Expenditure under BAR must demonstrate a direct link to the negative impact of the withdrawal of the UK from the EU. Failure to do so will see the European Commission deem expenditure ineligible. The ongoing trade negotiations between the UK, New Zealand, and Australia will not give access to the UK market in the short term. While this will present future challenges, which we are looking to mitigate, there may well also be opportunities for suppliers in import substitution on EU markets.
The fact is that nobody has demonstrated a case that would qualify for BAR funding, which would not be deemed ineligible. While we would very much like to be able to access that once-off funding before the end of the year for the sheep sector, we have to be cognisant of the fact that that could well be deemed ineligible by the Commission.
Gabhaim buíochas leis an Aire as a fhreagra ansin. I was delighted to meet with Tom Lane, Tom Holmes and Stephen Walsh from the Clare branch of the Irish Farmers Association, IFA, a few weeks ago and we had a very long conversation about the pressures being faced by farmers in County Clare. I know that it is the same story in his constituency and throughout the country, where farmers are facing enormous financial pressures in respect of pricing and inflation.
I welcome the addition to €2 per ewe in the SIS but, as I am sure the Minister of State will be aware, that increase was quickly eaten up by rising costs from shearing to vaccines, and everything in between.
With respect to the BAR fund, Ireland has been allocated more than €1 billion, which is approximately 20% of the total funding. This month we received the third instalment amounting to more than €280 million. That money could be used to help insulate and provide economic sustainability to the sheep farming sector. There are in excess of 600 sheep farmers producing world-class products but I am deeply concerned that the sector will not expand as there is no incentive for new entrants.
We would love the sheep sector to be able to qualify for funding under the Brexit adjustment reserve, but it is not easy to prove the current challenges faced by the sector are directly linked to Brexit. The big challenges from Brexit are down the line and the medium-term risks are related to future trade deals. The EU will make deals. The UK has not yet done the deals with New Zealand and Australia. We are not yet affected in this regard but these are the challenges. Some of the trade deals will provide opportunities for us.
I completely agree with the Deputy in that sheep farmers in Kildare, whether on the Curragh or elsewhere, have been in touch with us, as have farmers from every other county. We have engaged with them. We understand the challenges that exist and that is why we have a range of supports, including the 20% payment increase under the sheep welfare scheme and the €10 billion in the CAP strategic plan. We are seeking to target these measures and supports, which we provide to all farmers due to the significant input cost increases that have accrued as a result of the Ukraine crisis, as well as other supports on which I might touch in my supplementary response.
In addition to having our lively discussion on the sheep farming sector, I spoke to the IFA in Clare about the nitrates derogation. I heard many colleagues from many counties raise this issue in both Houses in recent weeks. I would be very grateful if the Minister could inform me about the measures, financial or otherwise, that he will take to assist Clare farmers in meeting potential new targets with respect to the new nitrates action programme. Could he inform me whether water quality reports for 2022 will be considered as part of the programme review?
Other Deputies have raised the publication of the forestry programme and the engagement just before Christmas. They talked about the impacts on the sector, job security, confidence and future development. Is there a timeline for publication?
In support of the previous speaker, I recognise that the Minister is concerned about the sheep-farming situation in south Kildare, but also in north Kildare. It is a concern of mine also. In the event of unfavourable conditions, such as market factors, and of opportunities no longer existing or our being ineligible to qualify under the Brexit reserve, some means will have to be found to reassure the sector that help is available, having regard to the continuation of the industry, in particular.
The Deputies should have no doubt that we recognise the importance of the sheep sector. We want a vibrant one in the future and understand the challenges it has faced.
A specific question was on the Brexit adjustment reserve. In this regard, it is right that we sweat every opportunity and analyse every avenue where there might be funding we can secure. Making the specific case has not proved possible to date. We still want to examine every opportunity to offer support, as requested by Deputy Durkan. That is why many sheep farmers have applied under ACRES and why, even though we had space for only 30,000 farmers, we pushed ourselves to the limit to ensure we could take in the 46,000. We made interventions because high input costs are contributing to the considerable pressure on sheep-farmer margins here. Prices for produce comprise one matter but we know livestock farmers have suffered greatly across the board owing to high input costs. That is why we had the interventions last year, including the €56 million fodder incentive scheme. The €8 million national liming programme is to be introduced this year. This support will be of assistance to farmers in that there is €2.5 million for multi-species swards. We are considering a range of supports for farmers in these challenging times.
