asked the Minister for Agriculture if he is aware that large numbers of farmers have quantities of oats on hands for which they are unable to find a market; and, if so, what steps he has taken to relieve those farmers and provide them with a market for their crop.
Ceisteanna—Questions. Oral Answers. - Market for Oats.
asked the Minister for Agriculture if he is aware that farmers in many parts of the country are unable to sell this season's oat crop owing to the fact that the merchants' storage space is already overtaxed; that first-class oats is being sold at 22/- to 26/- delivered at mill, whereas similar quality oats was selling last September at 35/- to 36/6; whether he will state what steps are being taken to ensure that the grower will be enabled to dispose of his oat crop at a remunerative price and to prevent merchants and others selling oats as on former occasions for 50/- to 65/- which they bought from the farmers at less than half these prices.
With your permission, a Chinn Chomhairle, I propose to take questions Nos. 35, 36 and 37 together.
I am aware that at present farmers in some districts are unable to find an outlet for all the oats they would like to sell, at prices they would be prepared to accept. The bulk of this crop is normally retained on the farms for feeding purposes, and in recent years it is probable that only 10 to 15 per cent. of the total crop has been sold commercially. As the market provided by oatmeal millers and merchants is restricted, a slight increase in total production means a heavy strain on the home market, particularly when farmers all endeavour to sell at the same time. The estimated acreage of oats in 1948 is 883,400, or an increase of 6.9 per cent. on the previous year's acreage, which, as is well known, proved inadequate to supply the needs of live-stock feeders and poultry keepers.
I am satisfied that this relatively slight increase in oats production could be absorbed on the farms for increased production of live-stock and poultry and, at the prices now ruling for all kinds of live-stock products, in cluding poultry and eggs, I consider that this is the best possible way in which the increased yield of oats from the 1948 harvest could be utilised. Alternatively, farmers might retain any net surplus until spring, when less oats may be offering for sale on the home market.
Although my view is that every barrel of oats from the 1948 harvest could be profitably used at home, between now and next harvest, and although I am reluctant to take any action which may draw oats away from farms where they should be used for feeding, I propose to make arrangements to ensure that oats will be bought in quantity at reasonable prices. This action I hope will meet the needs of those who are compelled to sell now.
The question of the prices at which oats are resold by merchants will be kept under close observation.
Who will buy the oats?
Perhaps the Deputy would ask that question next week. The matter is under consideration at the moment and it might do a certain amount of harm to the market to be too detailed at present. I do not mind saying to the Deputy that one of the difficulties is to ensure in the buying machinery that the oats will be bought from the producers and not from merchants who have large stocks. If the Deputy presses for an answer now to his supplementary I shall try to get the information.
Will the Minister bear in mind the special position of North and South County Dublin conacre farmers, who have no storage facilities and who are absolutely dependent on the present price for a cash return for their crop?
One of the factors which did dictate this particular course was unquestionably the position of conacre farmers who had rented land and could not hold the oats. That is not peculiar to County Dublin.
Is the Minister aware that the Cork Milling Company is paying certain people 30/- for oats?
I know that that is being paid in a great number of cases.
I understood the Minister to say when replying to questions Nos. 34, 35 and 36 that the import of 13,000 tons of oatmeal had depressed the price of oats. What does he think has been the effect on the price of oats of a surplus production of 60,000 tons?
Of course the Deputy, although he is not directly associated with farming, knows from general knowledge that if you have an immense production in any industry, even outside farming, a production in excess of demand, there is a slackening in price. That is one of the laws of nature and as a result of that the unfortunate farmer, to an extent, suffers from a bountiful harvest.
Am I to take it from the Minister that the reason for the present low price of oats is that there has been a gross overproduction this season? Is that overproduction not due to the policy advocated by the Minister for Agriculture?
A bountiful harvest is due to the goodness of God.
Will the Minister not agree that if the Minister for Agriculture urges farmers to grow oats instead of wheat he is likely to leave the country with a scarcity of bread, with such a shortage that we are rationed, and at the same time that it is likely to lead to such an overproduction of oats that the bottom falls out of the market?
The Minister does not agree with the last speech made by the Deputy.