Farmers and agriculture pressures
Deputy Harty set out three threats to farming: Brexit, a possible CAP cut and climate change, and warned farmers were becoming disillusioned. The Tánaiste replied that Ireland is highly exposed to Brexit, emphasised the importance of food exports, and pointed to Food Wise 2025 and lower-carbon, sustainable growth in agriculture.
This question refers to threats to our agricultural industry and our agricultural community. There are three threats as I see it. In the short term there is Brexit, as we are all aware. In the medium term there is the potential reduction in the Common Agricultural Policy, CAP, budget. In the longer term there are challenges presented to the agricultural community by climate change and climate action.
On Brexit, the issues have been well identified and I will not go over them now, but any form of Brexit will have a negative impact, whether it is a soft Brexit via a withdrawal agreement involving the UK staying within the customs union and the Single Market in some form or other, or a harder Brexit where the UK cuts its ties almost completely with the EU. The loss of the UK market will be substantial for the beef and dairy industries. The imposition of tariffs will add to that and the delays in transport across the UK landbridge will be a serious blow to agricultural exports. Farm families need to know from the Tánaiste what level of support will be available from the Government and from Europe to maintain their incomes. I would like the Tánaiste to outline what those supports will be.
The CAP budget is under review and there are fears that this will be reduced substantially, with consequent threats to the beef and dairy sectors, if the UK leaves the European Union. The loss of the financial contribution that the UK makes to the CAP will obviously be a major factor there, so what reassurances can the Tánaiste give to farmers on this? Ireland is the most exposed of the European countries to a CAP reduction.
On the challenge posed by carbon emissions from beef and dairy farming, farmers are very fearful of the narrative that their traditional indigenous industry is being blamed in some quarters as a major damaging contributor to greenhouse gases and the threat to our planet.
An educational guide recently issued to schools by An Taisce recommends a reduction in meat and dairy consumption, equating such consumption with contributing to environmental damage. I believe this is the wrong message to give to our children, who are very impressionable. Excessive intakes of sugar, processed carbohydrates and salt are all contributing to obesity, which is now reaching epidemic proportions. This is the message which should be given to our children and their parents regarding diet while at the same time promoting exercise and sport. We all know that a balanced diet is very important for health and well-being, and the manner in which we process and cook our food is as important as the content of that food. The message should go out that farm families are custodians of our environment and are not contributing to its destruction. The uncertainty in the farming sector regarding Brexit and the CAP budget is being compounded by the narrative that farming damages our planet and provides food that can damage our health. We should ensure educational material does not do that.
Comment on this
I thank Deputy Harty for those questions. I would have liked a much longer time to reply because I have a lot of personal interest in this area given that I am a former Minister for Agriculture, Food and the Marine, and a farmer.
We know that Ireland is more exposed and more vulnerable to a no-deal Brexit or the wrong outcome from Brexit. Ireland exports more than €1 billion worth of beef to the UK and dairy products worth more than €1 billion. We also import food and drink worth billions of euro from the UK. Should this trade be subject to tariffs in the future, or to other non-tariff trade barriers, it would be very damaging to the Irish agricultural and food industry and to Irish farming. We are conscious of this and we have been for many months. Hardly a Cabinet meeting passes without the Minister for Agriculture, Food and the Marine, Deputy Creed, raising these issues and the challenges that emerge from them.
I want to reassure farm families. There are 130,000 farm families in Ireland, nearly 100,000 of whom get some farm income from beef and 70,000 of whom get all of their farming income from beef. I want to reassure them that if Ireland faces a no-deal Brexit - which looks less likely today than it did last week - we will be ready to support Irish farm families and the food industry through what will be a very difficult period of change and disruption. We are working with the European Commission and Commissioner Hogan has been very strong on this also. There will be a significant support package to help farmers through the disruption of a no-deal Brexit, which would be considerable for Irish agriculture.
On the issue of CAP, I was involved in trying to finalise the Common Agricultural Policy the last time around. There is a really competitive environment for EU funds now. With the UK likely to leave the European Union and in the medium term no longer contributing to EU budgets, and with increasing demand for more money in EU budgets at the same time, especially in respect of security, external relations, climate and the promotion of technology and research, we have seen some pressure on the CAP budget and on other regional budgets. The Government has made it very clear that it is a priority for us in the new multi-annual financial framework, MFF, to protect the CAP budget. We have said that we will contribute more to EU budgets as long as the CAP budget is protected. We have developed a strong alliance - and the Minister, Deputy Creed, has worked very hard on this - across the European Union to protect the CAP budget. A significant number of countries are now part of that coalition to do this. As the debates continue on the MFF I can assure the House that the CAP budget will be a big priority for us.
The third issue raised by Deputy Harty was on climate. The agriculture and food industry has a responsibility to ensure we respond to the emissions challenge facing the sector, as faced by other sectors also. We need to do that in a way that continues to protect farm incomes and to protect the agriculture and food industry as part of the broader economy. This is what we will continue to do, as the Minister for Communications, Climate Action and Environment, Deputy Bruton and the Minister, Deputy Creed, work together from a climate change perspective, as well as an agricultural perspective.
Comment on this
I linked the three items of Brexit, CAP and climate change together because I have met farmers over the last months who have become quite disillusioned with the way they are being portrayed and in how they are being supported. I accept the Tánaiste's comments on the supports that will be delivered, whatever form of Brexit develops over the next months. The uncertainty over CAP cannot be predicted but the farmers can certainly see, coming down the line, that they will be under severe financial pressure if there is a reduction in the CAP budget.
Because they are a traditional, indigenous industry, farming families feel they are now being blamed for climate change, for damaging the climate and for producing food that is deemed to be unhealthy. As I said earlier, a balanced diet is very important. Farmers need to be reassured that they are recognised as being custodians of the environment and the land, and that they are not producing products that damage people's health or damage children's health. Perhaps the Tánaiste might address this issue in his next response.
Comment on this
Food Wise 2025, the current agrifood plan for the country, is about sustainable growth and expansion. It is about ensuring that young people are still attracted to farming as a way of life and as a way of deriving an income. It is also about driving efficiency: driving down the carbon efficiency of how we produce food while sustainably realising the potential of a growing and expanding dairy sector. Ireland produces dairy products at the lowest carbon intensity on the planet. Surely it makes sense for countries that have the capacity to produce dairy products, which is a huge part of human nutrition globally, and who do this best from a climate and emissions intensity perspective, to allow their industries to grow and expand.
In respect of beef, Ireland is probably in the top 30% in terms of efficiency and we need to do more in that regard. Part of the challenge is the herd size. We are breeding more efficiency into our breeds and supporting farmers financially in making that change through the beef genomic scheme and other innovative schemes. We will continue to support this sector to make the changes it needs to make to become more climate aware and emissions efficient. This does not mean the farming and food industry does not have a bright future of growth and expansion.