Dáil Éireann Debate, Thursday - 27 October 2016
159. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine having regard to the return of the 2016 harvest, if he remains satisfied regarding the future of the cereal sector, with particular reference to the need to meet specific targets in return for a reasonable income; and if he will make a statement on the matter. [32478/16]
Amharc ar fhreagraThe tillage sector is an important and integral component of the Agri-food industry. Ongoing commitment to this sector is underlined in the Food Wise 2025 report for the industry. This action plan for the Agri-food sector contains over 400 recommendations and identifies many areas for growth in the tillage sector, particularly in the very important and successful distilling and craft brewing industries, high-end health foods and value-added niche foods and ingredients.
I recently chaired a meeting with the main stakeholders in the tillage sector. This meeting provided a platform for the stakeholders to express their views and concerns on the challenges they are facing but equally to discuss the opportunities that lie ahead for the industry.
In recognition of the challenging environment this year on tillage farms, I informed the meeting that I had directed my officials to prioritise the processing of all payments this year including the Basic Payment Scheme (BPS), the areas of Natural Constraint Scheme, GLAS and AEOS which are in total worth over €1.5 billion annually to the Agriculture Industry.
In relation to the BPS and Greening Payment, I was pleased to arrange for advance payments to commence on 17 October, the earliest possible date by which payments can begin under the governing EU Regulations. By the end of last week, some €735 million had been paid out to 112,922 farmers and these payments are ongoing.
At the meeting with tillage stakeholders, I outlined that one of my priorities was to provide low-cost more flexible finance and in this regard I was happy to announce on Budget Day plans for a €150 million Agri Cash Flow Support Loan Fund. Developed in conjunction with the Strategic Banking Corporation of Ireland (SBCI), by leveraging EU and Exchequer funding totalling €25m from my Department to deliver a total loan fund of €150m, it will support highly flexible loans for up to six years, for amounts up to €150,000. The interest rate applying is 2.95% and the product will be available to livestock, tillage and horticulture farmers. Loans to tillage and horticulture farmers will be provided in line with agriculture State Aid de minimis requirements. This loan product is aimed at alleviating the pressures of income volatility and will enable farmers to improve the management of their cash flow and reduce the cost of their short term borrowings.
In addition, the Rural Development Programme 2014-2020 contains measures to support the establishment of Knowledge Transfer Groups across the main farming sectors. A Knowledge Transfer Group for the Tillage sector is currently under way.
An amendment to the Rural Development Programme 2014-2020 also provides for the inclusion of a Tillage Scheme under the suite of measures provided under the Targeted Agricultural Modernisation Scheme. It is anticipated that the Tillage Scheme will open for applications in the near future.
In addition to these specific recent initiatives, my Department operates ongoing schemes and programmes in relation to seed certification and crop variety evaluation. These schemes ensure that only the best quality seed is available to growers and that Irish cereal yields remain among the highest in the world.
The changing landscape of global arable production requires us to take a fresh look at our tillage industry, to ensure that it is best positioned to withstand possible future threats and to avail of the new opportunities which may present themselves.
