asked the Minister for Agriculture if he is aware that the intervention grain scheme element in the feed voucher scheme has dropped by 50 per cent in value over the past week; and if he will make a statement on the matter.
Written Answers. - Feed Voucher Scheme.
177.
The value of the "grain" vouchers is determined by the market, having regard to the prevailing market price for grain and the price at which cheap intervention grain can be purchased with vouchers. In general terms, the value of the discount on one tonne of intervention grain is the difference between 75 per cent of the intervention price and the market price of grain, adjusted by the costs incurred by merchants in buying grain from intervention.
The intervention grain available for the scheme consists of 36,000 tonnes of high quality feed wheat and 89,000 tonnes of feed barley. As the grain is allocated on a first-come first-served basis it was to be expected that initial demand would be for wheat and, accordingly, that the value of "grain" vouchers would be higher at the outset. During the first two weeks after issue the vouchers were valued at between £20 and £26 per tonne but following the allocation of feed wheat there was a slight drop in the value. However, I understand that the situation has since steadied and that the vouchers are currently being valued by merchants at £20 per tonne.
The value given to farmers for the vouchers is being continuously monitored by my Department having regard to market prices, with a view to ensuring that there is no profiteering.
I would like to remind the Deputy that intervention grain is only a small element of the feed voucher scheme and that the greater part of support is by way of the "cash" voucher. Other forms of assistance such as the winter fodder scheme and accelerated payment of headage grants have also been provided by my Department to enable farmers to secure adequate winter fodder for their livestock.