Dáil Éireann Debate, Thursday - 20 April 2023
80. Deputy Claire Kerrane asked the Minister for Agriculture, Food and the Marine if he intends to provide financial supports for the sheep sector from the Brexit adjustment reserve; and if he will make a statement on the matter. [18491/23]
Amharc ar fhreagraDoes the Minister intend to introduce an emergency package of financial supports for the sheep sector. He will be aware, as we all are, that sheep farmers have been calling out for supports for some time now and they have not been forthcoming. Is there an opportunity to seek emergency funding from the Brexit adjustment reserve?
First, I offer my best wishes and congratulations to Deputy Kerrane on her appointment as Sinn Féin spokesperson on agriculture and food. I wish her well and look forward to working with her. If she requires any information my Department can provide, she should feel free to ask. I wish her well. I know she will enjoy the role and is well-suited to it. It was also good to work with Deputy Carthy and I wish him well in his new role.
A vibrant sheep sector is an important aspect of our farming economy. It is important for ensuring a balanced regional economy. Many of our parishes and farming families depend on it. 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 previous years. However, as we know market prices are a commercial matter that we cannot directly impact or influence. Thankfully in the past week in particular, we have seen a good lift in the price of hoggets of about 60 cent in some cases, which has been welcome. We have seen hoggets crossing €7 per kg and spring lamb going over the €8 per kg mark, which is welcome and much needed by farmers.
As Minister, I have worked hard and continue to do so to try to ensure the sector is supported through the various schemes we have in place. The new Common Agricultural Policy, CAP, programme which started this year particularly benefits the sheep sector. For example the front-loading and convergence and especially the decision to accommodate all applicants to the agri-climate rural environment scheme, ACRES, is particularly beneficial to the sheep sector. The €12 per ewe sheep improvement scheme has also been heavily subscribed. From the point of view of sheep farmers, with regard to costs, a €1,000 maximum per farm family was introduced to address the increased fodder costs. I continue to monitor the market closely and, as with any sector, I am always open to ideas and proposals around the Brexit adjustment reserve. It is difficult to meet the technical specifications to qualify, but I am always open to proposals.
I thank the Minister for his kind wishes. I appreciate them and I too look forward to working constructively with him and the Minister of State, Senator Hackett.
Of course, the importance of the sector is well-known and that is always the first line. It is important and we should acknowledge it. However, the sector is under huge pressure. It has been seven weeks since the Irish Cattle and Sheep Farmers Association, ICSA, held a protest outside the House. I met sheep farmers that day who told me they are to the wall and they are still waiting seven weeks later.
The question being posed relates to the fact that there is a fund there. I understand it is difficult to meet the criteria for that fund and to draw it down, but it has been done. We know that other sectors and processors have been able to avail of funding under it and it begs the question why the sheep sector cannot. There has been a loss of income, albeit I accept that prices have increased recently and that is welcome. The sector has had huge increases in input costs. There is a crisis in the wool sector for farmers. It is more expensive to shear sheep than the price farmers will get for the wool and the impact of Brexit is clear. Will the Minister go to the Minister for Public Expenditure, National Development Plan Delivery and Reform to seek funding under this fund?
As the Deputy will be aware, the Brexit adjustment reserve is an important source but it is difficult to qualify for it. We have to show a direct correlation between what is being funded and the impacts of Brexit. I have not received any proposal which would stack up in that regard.
As with all sectors of agriculture, I have asked my Department and officials to consider how we could potentially draw down Brexit funding. It does not appear to be possible in this instance. Since six or seven weeks ago, we have thankfully seen a significant change in the market conditions for sheep. There is no doubt that during last winter store finishers were not making money. The winter store trade can be up and down year to year and certainly last year was a challenging one. We are in a better situation now. Prices are stronger and lambs will be finished off grass in the weeks and months ahead. I will continue to monitor the market situation closely while delivering, in every way I can, supports to underpin family farm income for the sheep sector through the CAP and the new sheep improvement scheme. Most importantly and significantly, every sheep farm that has applied to ACRES has been accepted, which could potentially be worth up to €7,000 per sheep farm this year.
Some of those schemes, such as ACRES, are welcome and will make some difference. However, they are more focused on the environment as opposed to production. The fact of the matter is that monitoring is not good enough at this point when sheep farmers are telling the Minister that they are in crisis and the sector is in crisis. The clear impact of Brexit is there. If the Minister looks at the trade deals that have been done by England with New Zealand and Australia, he will see they are both big sheep-producing countries. They have the potential to undermine our sheep sector. Sheep farmers are worried about that. Will the Minister confirm in his response whether he has asked his Department officials to look at this? Is it the case they have looked at it as regards the Brexit fund and it is not possible?
Can the Minister say categorically that it has been investigated and is not possible, or is it the case that it will be investigated? Will the Minister clarify that?
In terms of the Brexit adjustment reserve, other funding and annual negotiations around budget, I want to draw down and pull in every bit of funding I possibly can across all segments, and not just the sheep sector, to support and enhance farm family income. Every opportunity has been assessed for the sheep and other sectors and we continue to do that. We fully assess any new ideas that may work but it is difficult to stack it up. If Deputy Kerrane has a proposal, I am open to it. I have also said to the farm organisations that if they see an innovative way to do it in the sheep sector or any other sector, I am open to it. We have investigated it in detail in the Department. My officials assess it at all times and go through the Brexit adjustment reserve capacity to see where it might be delivered. If the Deputy has a particular thought on the matter I will consider it but so far, all of the assessments are that there is no way to make it stick with the Brexit adjustment reserve. Regarding the CAP funding, the ACRES decision, in particular, is significant for sheep farmers. I am conscious that this can deliver significant income for sheep family farmers this year.
