Farm losses and tax supports
Deputy Collins raises severe losses for grain and family farmers and welcomes a coming tillage roundtable, seeking compensation and stronger supports. The Tánaiste acknowledges rural pressures, notes existing measures and ongoing budget discussions, and says farmers' tax-payment issues are being considered.
Farmers are going through one of the most difficult periods experienced on family farms in many decades. Farm families are at an all-time low. Grain farmers throughout the country have lost their crops and many face ruination this year. The year 2016 is the fourth year in a row that many grain farmers are trading at a loss. I welcome the announcement of the round table meeting of tillage sector stakeholders due to take place next month. I expect that, following this meeting, increased supports will be put in place and compensation awarded to farmers who have suffered significant losses.
For many dairy farmers, 2016 has been the worst year in farming history, with milk prices at an all-time low. However, there has been an increase in global markets in recent months. These increases must be reflected at the first opportunity in prices paid to farmers. There must be no stalling on milk price increases by co-ops. Since Brexit, farmers have experienced a major drop in prices for beef, which has decreased from €4.70 to €3.70 per kilo. Our beef farmers are trading at a loss with these prices. This drop in prices to farmers has not been reflected in the prices paid by consumers. Suckler farmers are also experiencing great financial difficulties. I feel strongly that the suckler cow grant must be increased from €80 to €200 per cow.
There are serious issues that need to be addressed. The sheep grant has to be examined. A promise was made in the programme for Government to farmers, but it has not been delivered. Disadvantaged area payments have also been cut.
Given that this has been an exceptionally difficult year for farmers, I ask that the Government has forbearance, defers the payment of farmers' taxes due this year and spreads payments over the next five years. I am not asking that farmers be exempt from paying taxes. Rather, I ask that they be offered the opportunity to pay them over a period of five years in order to ease the major financial burden they currently face.
I also ask the Tánaiste and Minister for Agriculture, Food and the Marine, Deputy Michael Creed, to intervene with banks, co-ops and the Department of Social Protection to find solutions to providing aid for farmers at this difficult time. I have spoken at length with two of our national farming organisations, namely the IFA and the ICSA, in the past number of weeks. I have visited many grain, dairy, suckler and sheep farmers in recent weeks, from Kinsale to Mizen Head to the Beara Peninsula and Innishannon. I have seen the crisis we are in at first hand.
I reiterate my request that the Government does everything in its power to support farmers during this difficult time. I ask the Tánaiste to ask the Minister for Agriculture, Food and the Marine to visit farms that have been affected in rural Ireland and west Cork over the coming days. He can see at first hand the acres of grain that will not be harvested and instead ploughed into the ground.
I also ask the Tánaiste to consider tax issues facing farmers who are in significant financial difficulties, and spread the payments over five years. I reiterate that I am not asking for a tax exemption for farmers. Rather, I ask that payments to be spread over the next five years in order to ease their burden.
Comment on this
I thank the Deputy for his points on the farming community and the challenges it faces, in particular in regard to pricing. The Government is determined that the recovery is felt in every part of the country, and that of course includes rural communities. There is evidence of that beginning to happen but, of course, there is more to be done, as the Deputy correctly said.
The IFA briefed Deputies this week about a range of issues it wants to be addressed in the budget. The Minister, Deputy Creed, is actively addressing those issues. On the cycle of tax payment that is due by farmers, I am sure farmers will be considered very sympathetically by the Minister for Finance, Deputy Michael Noonan, and the Minister, Deputy Creed, in the upcoming budget. That is the place where the matter will be dealt with and a decision will be taken on the particular approach that is needed to support our farmers and rural communities.
The general economic recovery, which is ongoing, takes time to be felt in every sector. The farming community very often has a cyclical movement, whereby prices can be very high and then low. As Deputy Michael Collins said, this is a very difficult period for farmers, in particular those in the dairy industry. I will make sure that his comments are brought to the attention of the Ministers for Finance and Agriculture, Food and the Marine. As I said, I have no doubt this will be considered in the context of the budget.
Comment on this
I thank the Tánaiste for her response. I would appreciate her bringing to the direct attention of the Minister for Finance, Deputy Noonan, my proposals on a tax exemption or a spread of payments for taxes to give the farmers an opportunity to survive this year. The Tánaiste knows as well as I that when farmers are affected the whole community is affected.
We face many serious issues. Some farmers are finding it extremely difficult to get farm assist. We were promised an increase in the rural social scheme where farmers on a low income would get an opportunity to participate on a work scheme. That has not happened in the programme for Government. I plead with the Tánaiste to go to the Minister for Finance and to the Minister for Agriculture, Food and the Marine to plead the case on behalf of the farmers. Many of them face ruination and that is a very serious issue which we must resolve. I ask that the Tánaiste and the Minister for Agriculture, Food and the Marine, Deputy Creed visit some of these farms over the next few days. I would be happy to show both Ministers around. I would also welcome both Deputies from west Cork to join in the visit to that area, if they would consider that, to see the serious situation of grain farmers and dairy farmers at this time.
Comment on this
We know, and this reinforces the Deputy's point, that on 50% of farms either the holder and-or their spouse has off-farm employment to try and deal with the economic situation they face. Commodity price variation and volatility is an increasing feature of agriculture markets and it is very difficult to deal with. As the Deputy knows, a number of measures have been introduced to support farmers in regard to the price volatility, including direct payments to farmers which are estimated by Teagasc to be approximately €17,000 per farm, or €20,000 for dairy farms. That is a fundamental hedge against volatility which is going to be very important in the challenging years ahead. As the Deputy has said, the budget decision was taken last year with regard to income averaging from three to five years to give more scope for income smoothing to help deal with that commodity price cycle. I am sure the Minister, Deputy Creed will consider that issue again in this year's budget given the volatility we are seeing in prices currently.