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Dáil
‹ Leaders' Questions

Fodder crisis and farm supports

Summary

Deputy Mattie McGrath highlights farmers’ dependence on payments, widespread non-viability and the fodder shortage, accusing the Government of neglect and demanding stronger action, including a ship to import feed. The Taoiseach cites imported supplies, a doubled €2 million transport subsidy, extended applications, bank assistance and departmental coordination, but the exchanges remain sharply disputed until the sitting ends.

Yesterday the annual national farm survey was released by Teagasc. It shows that farming continues to be highly reliant on direct support payments. The single farm payment continues to be the most important component of direct payments. It comprises 58% of farm income on average, and over 80% of income on cattle farms. These are astonishing figures. Shockingly, it also shows that 26,104 farm households are not viable and neither the farmer nor the spouse works off the farm. This highlights the desperate situation the agriculture sector is in. All farming associations, including the IFA, have said the main reason for the drop in income was bad weather and the impact of Government cuts.

The Taoiseach might believe he can do something about the weather, but he cannot. He can, however, do a lot about the Government's response to the fodder crisis the weather has caused. The Government response to the fodder crisis has been inaction and paralysis. A lot can be done about the levels of cuts the farming associations have said are causing real and substantial pain to farming families all over the country. It is clear these farms are particularly vulnerable to cuts in direct payments because they are so vital to farm income. Given that information, will the Taoiseach categorically acknowledge that there is a real crisis in the agriculture sector? All of the evidence points to the seriousness of the situation and the fodder crisis is getting worse. All reports are saying its effects will continue for the next number of years if it is not dealt with. So far this year there have been 133,000 fallen animals.

This is a real crisis and it is time for a national plan involving the relevant Ministers who can contribute to the easing of this suffering. There is a national strategic committee that comes together under the Taoiseach's direction at times of flooding, snow and other crises which are much smaller in area than the country-wide crisis in fodder. I demand the Taoiseach to convene that committee. Will the Taoiseach use his position of President of the European Union to tell his EU colleagues how bad things are in Ireland, that there is a real crisis and that there must be emergency measures put in place, including the making of all payments up-front while delaying farm inspections? The Teagasc inspectors should go into the banks with the farmers to see the refusals at first hand. The Minister says they are ready and willing to lend but they are not lending and farmers can no longer borrow because milk cheques and everything else are being consumed. This is an ongoing crisis that will get worse if the Taoiseach does not act.

Comment on this
Enda Kenny The Taoiseach Fine Gael

It is nonsense to say nothing is being done about this by the Department of Agriculture, Food and the Marine or by the Minister. They have been very proactive in dealing with the fodder crisis, which principally arose from the very cold and bad weather that has been unusual this year and has had a direct impact on the input costs for farmers having to buy feedstuff. The lack of fine weather has also severely impacted grass growth. Teagasc figures show bad weather resulted in a drop in family income by 15% in 2012 to €25,483. That is still 10% ahead of the 2010 figure. It is clear from the survey that the increase in input expenditure was brought about by poor weather, everyone understands that. Gross output declined by less than 1% on average, while total production costs increased by 9%. In addition, expenditure on concentrate feed was up by 30% and bulk feed by 28%.

These are input costs that have arisen because of the bad weather. Clearly, the Government has been acutely aware of the crisis facing farmers over fodder.

Comment on this

The Government has not done much about it.

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Enda Kenny The Taoiseach Fine Gael

Almost a thousand loads have been imported, with further large quantities expected. The transport subsidy scheme has been doubled, to €2 million, and the closing date is extended to 24 May. The animal welfare helpline is manned on a constant basis and is dealing with calls from farmers with concerns. Some 150 farmers have received direct aid under this system.

The Minister, Deputy Coveney, and the Department are liaising directly with the banks, the co-operatives and the suppliers to urge flexibility and favourable credit terms are being offered where that is possible. Over 2,000 payments from the agriculture environmental options subsidy have issued during the past two weeks and together, these payments are valued at approximately €3 million. Some 29,200 of the remaining 30,200 REPS 4 participants have been paid a total of €167 million in respect of the 2012 application period and an additional €1 million will issue this week to a further 200 REPS 4 farmers.

Teagasc has also launched a national campaign aimed at supporting farmers who have a particular fodder crisis. A number of co-operatives have introduced positive measures, such as reduced prices or rebates on compound feed, and interest-free credit for fertiliser. Although there has been some small improvement in grass growth in the past short period, heavy rain has resulted in difficulty in getting animals out on grass in some areas of the country and all efforts will continue to ensure farmers are assisted through what is a difficult period. While current conditions are difficult, the longer term outlook remains good overall and the positive expectations for dairy, beef and lamb prices mean that farmers should see improved return on prices in the period ahead.

The Minister has been very busy, as has the Department, in dealing with the question of the international plan, which is the reform of the Common Agricultural Policy, and we are hopeful of bringing that to a conclusion during the course of this Presidency, in the next five to six weeks.

Comment on this

That was a comprehensive reply.

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It is the Taoiseach who is talking nonsense, not I. He stated the Minister is very busy. Why would the Taoiseach not appoint a second Minister of State? Of what is the Taoiseach afraid? Promises keep all the backbenchers quiet.

The Taoiseach's response to the fodder crisis is disgraceful. He has refused to call together the national infrastructure committee-----

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Deputy Mattie McGrath had that written before he heard it.

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Deputy Mattie McGrath himself should take the job.

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-----on the day when the Farm Contractors of Ireland are outside the gates of this House protesting about the plight of the farming sector.

All the waffle in the world, and all the spin, will not put grass on the fields or food on the tables. Shamefully, the Government is neglecting the main industry in this country. Coming from a rural county, the Taoiseach should understand the position in agriculture. When the farmers are doing well, the country is doing well.

At the Cement Roadstone AGM, I called on the company to provide a cargo ship to bring in the aid that the IFA and the co-operatives, both of whom I salute, have sourced abroad. The Minister, Deputy Coveney, promised us at committee a month ago that he would organise a ship. Unless he sailed away on it, we have not seen it. Cement Roadstone has plenty of cargo vessels. The company has made considerable profits. It is one of the strongest companies in Europe and it should provide one of those. I ask the Taoiseach to call on the company to transport the fodder from France and elsewhere to those who need it. Did the Taoiseach watch the television last night? He should talk to the Teagasc staff.

On a day when we salute the bravery of the late young Donal Walsh being laid to rest in Kerry this morning - God rest his soul - for the efforts he made to deal with those on the verge of suicide, and when Teagasc and Pieta House and many others dealing with this area are telling us of the suicides and threat of suicides in the farming community, it is the Taoiseach who is talking nonsense. The Taoiseach has a habit of doing that lately on all matters and as for answering a question, he has given it up for two years.

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It is the silliest point I have ever heard.

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Enda Kenny The Taoiseach Fine Gael

It is disrespectful of-----

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What is silly about it?

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It is not silly. The Government is out of touch.

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Michael P. Kitt An Leas-Cheann Comhairle Fianna Fáil

Please, please.

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Enda Kenny The Taoiseach Fine Gael

It is disrespectful of Deputy Mattie McGrath to raise the matter of the death of a young boy in these circumstances.

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Hear, hear.

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It is not disrespectful.

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I made it in the context-----

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Enda Kenny The Taoiseach Fine Gael

The Minister, Deputy Coveney, has just concluded a 36-hour marathon negotiation in dealing with the Common Fisheries Policy-----

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Where is the Minister of State the Taoiseach was going to appoint?

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Enda Kenny The Taoiseach Fine Gael

-----which has been talked about for 30 years and about which nothing was done. At long last, real reform is in prospect.

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The Taoiseach has left agriculture without a Minister of State.

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Enda Kenny The Taoiseach Fine Gael

As I pointed out to Deputy Mattie McGrath, the scheme has been doubled, with a €2 million investment, and a closing date for applications of 24 May. This is about logistics. Deputy Mattie McGrath will be aware that the feed has been sourced.

Comment on this

They cannot get it in.

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Enda Kenny The Taoiseach Fine Gael

It has already been purchased. It is a matter of getting it here. Deputy Mattie McGrath makes his flippant comment about ships, etc.

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The Minister promised a ship a month ago.

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Enda Kenny The Taoiseach Fine Gael

Those involved in this, Teagasc, the IFA, the feed suppliers and the farmers-----

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Everybody except the Government.

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Enda Kenny The Taoiseach Fine Gael

-----are well capable of dealing with the logistical challenge of getting fodder into the country.

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Everybody except the Government.

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Enda Kenny The Taoiseach Fine Gael

They are already planning in terms of next year. Farmers who might normally take three cuts of silage will not be able to do that this year under the current weather conditions.

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They will be lucky to get one.

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Enda Kenny The Taoiseach Fine Gael

For the immediate future, the transport subsidy is in place, the scheme has been extended to 24 May-----

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They have no ship. It is no good to have subsidy.

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Enda Kenny The Taoiseach Fine Gael

-----and I hope that today will see the arrival of more, and adequate, fodder already purchased and that it will be distributed to farmers who need it.

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The Taoiseach cannot tell me.

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Enda Kenny The Taoiseach Fine Gael

From where he comes, Deputy Mattie McGrath is well aware of the connection and co-ordination of activity in the farming community to get this fodder delivered to those who need it and as I stated previously, the direct line to the Department is there for anybody who has a particular problem.

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They need action, not telephone lines.

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Enda Kenny The Taoiseach Fine Gael

We have had the action.

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Where is the ship?

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Enda Kenny The Taoiseach Fine Gael

The Minister has met-----

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Where is the ship?

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Captain Simon on the ship.

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Enda Kenny The Taoiseach Fine Gael

-----all the banks.

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Michael P. Kitt An Leas-Cheann Comhairle Fianna Fáil

Order.

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Enda Kenny The Taoiseach Fine Gael

He has met the lenders. The feed suppliers-----

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Captain Birdseye.

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Deputy Coveney is not the captain.

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Michael P. Kitt An Leas-Cheann Comhairle Fianna Fáil

Sorry.

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Enda Kenny The Taoiseach Fine Gael

-----the farmers, Teagasc and the Department all are working in the interests of seeing that this matter is resolved.

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All except, and in spite of, the Government.

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Enda Kenny The Taoiseach Fine Gael

I hope the weather improves and that it will bring about grass production. It is six weeks behind where it should be. We do not have any control over that, much as Deputy Mattie McGrath might like to think we have.

Comment on this

The Minister promised a ship at committee a month ago.

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Michael P. Kitt An Leas-Cheann Comhairle Fianna Fáil

That concludes Leaders' Question.

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