Fodder Crisis

Dáil Éireann Debate, Thursday - 25 April 2024

Thursday, 25 April 2024

Questions (55)

Peter Fitzpatrick

Question:

55. Deputy Peter Fitzpatrick asked the Minister for Agriculture, Food and the Marine if he intends to reinstate the fodder scheme to help compensate farmers for the financial losses they are facing due to the particularly wet conditions this spring; if flexibility is being extended and consideration being given to farmers who are struggling to meet the stipulated three-cop rule due to very difficult weather and ground conditions; and if he will make a statement on the matter. [18665/24]

Oral answers (6 contributions)

Deputy Peter Fitzpatrick

Does the Minister intend to reinstate the fodder scheme to help compensate farmers for the financial losses they are facing due to the particularly wet conditions this spring? Will there be flexibility and will consideration be given to farmers who are struggling to meet the stipulated three-crop rule due to very difficult weather and ground conditions? Will he make a statement on the matter?

Deputy Charlie McConalogue

As stated in reply to the previous question, this has been a really challenging spring. We have worked to support the farming community through it with the fodder transport measure. Teagasc has been working at local level to provide support to farmers to ensure they can get supplies where they were running short. The fodder support measure was a really important one last year. It was crucial in ensuring we had sufficient fodder supplies in the country this year to deal with the unprecedentedly long winter. In many cases, there has been a housing period of up to seven months, starting last September and lasting until this week.

Particularly given the backdrop of the Russian invasion of Ukraine and the challenges it led to in respect of supply chains and the increases in fertiliser costs last year and the year before, I stepped in to ensure we could help to relieve some of the costs for farmers last year to ensure the maximum amount of fodder would be grown, precisely to ensure we would have enough in the event of a long winter and a long housing period such as we have had. Thankfully, that has meant that we have had enough fodder in the country to deal with the situation. That was important.

The funding last year was exceptional and based on the fact that prices, particularly of fertiliser, were exceptionally high as a result of what was happening in international markets.

It was similar to the support the Government provided by means of the exceptional response funding we put in place in respect of the situation in Ukraine, such as for household electricity and energy costs and one-off supports for families through social welfare. We also delivered supports across the economy. In the agriculture sector, that support was provided by means of the fodder scheme. Thankfully, we have seen fertiliser prices drop significantly, although they are still higher than what the long-term average would have been, but I believe much of the pressure has been relieved. We will work to support and advise farmers. We will work with the national fodder committee and Teagasc to make sure the stocks are replenished and that everyone has enough supply for next winter and spring.

Deputy Peter Fitzpatrick

I am extremely concerned and I am sure the Minister is too. The adverse conditions have been really bad. There have been serious concerns around livestock and tillage. The Minister knows the spring crops such as barley have not been sown yet, even in County Louth, which is normally a very dry county. I ask the Minister again if he intends to reinstate the fodder schemes. There has been adverse weather which has affected livestock. People are struggling. There is extreme hardship. I do not come from a farming background but in County Louth and east Meath, there are many farmers. They seem to be annoyed that the Government has not come out and given them any support. Looking at them, with the number of regulations from the EU and even the local county council, the money they are getting from grants has not been increased for a long time. They are looking for a bit of help to help put food on the table. Will the Minister reinstate it or not?

Deputy Charlie McConalogue

This Government has been very responsive and supported farmers in times of need and in the medium to long term, by means of significant investment. The CAP, which will run up to 2027, offers 50% higher funding. That is a record increase in Government funding. Over the past two or three years, where sectors have been under pressure, be it the pig sector, the horticulture sector or the tillage sector last autumn and this spring, we have worked to support them. One of those supports was to the livestock sector last year. The year before, we provided €1,000 per family farm for the making of fodder. I was concerned because of the historically high prices of fertilisers that farmers might try to cut it tight and just make enough or in some cases take a risk by not having an excess supply in place. That is why I had it in place last year.

This year, I have committed funding to the tillage sector. The latter is the sector that is most under pressure. We have also committed additional funding to the sheep sector this year through the delivery of doubled support of an extra €20 per sheep. There are not plans for a fodder scheme this year, specifically because we have seen a significant drop in fertiliser prices compared with last year. We will work and provide the advisory support and co-ordination capacity to make sure that all in the sector now respond to make sure that fodder supplies are fully replenished for next year and indeed that stocks are strong to be able to withstand the type of long winter that we have seen over the past winter.

Deputy Peter Fitzpatrick

Is it true that Ireland received €1.6 billion in pillar 1 funding from the EU? That figure is effectively the same as it was ten years ago, despite significant inflation. The Minister mentioned that fertiliser, diesel and so on have gone up in price. Farmers are really struggling. I am a spokesperson for them. Everything has been put on hold for the past number of months. Farmers are being asked to do so much with so little money. They have often told me there is no additional support for farmers with CAP payments being repurposed for environmental measures. The money they are getting is being diverted to other things. These farmers are pleading with the Minister for a bit of help. We are having very unusual weather. I know the Minister helped them last year. They are also looking for a bit of help this year because everything is so expensive. I plead with the Minister to reinstate the measure in question, particularly as every other Department seems to be giving out money. These farmers do a fantastic job to put food on people's tables. The Minister mentioned Ukraine and everything else. These people just need a bit of help. Even families are actually getting out of farming. Will the Minister please help by reinstating the measure?

Deputy Charlie McConalogue

We are working to provide support. That is our track record. The Deputy is correct about pillar 1 payments at European level. The CAP budget at European level has been static from the previous CAP to this one. We are one of the 27 member states which is constantly pushing to maintain and increase it but of course 27 member states have to agree to the decision, so it has been static. That means it has eroded in real terms.

CAP is co-funded, so we also bring funding to the table as a national Government. We have shown our stripes in that regard because we have delivered record funding for the CAP through the national co-funding because we have increased it by €1 billion or 50% compared with what was there before, which is much higher than ever before. That means, for example, that I have been able to deliver €200 per suckler cow, which is the highest payment there has ever been. This year, for the first time ever, we will deliver €20 per sheep, which is double what was there a couple of years ago. For the first time ever, I have accepted everyone into the agri-climate rural environment scheme, ACRES. That was 50% higher funding in ACRES, the largest ever scheme. That is because this Government has put money in there. I am also making a commitment to the tillage sector - the sector that is most under pressure - for the coming year. Obviously, it is not unlimited. However, we are working in every way we can to support the farming sector as much as possible.