Farmers are getting on-going payments’ - says Minister Creed

A ‘CRISIS FUND’ to support tillage farmers who have suffered financially as a result of harvest failures and price reductions, needs to be put in place.

That was the view of Deputy Kevin O’Keeffe (FF) who said east Cork tillage farmers have taken a double hit in 2016 and need Government support.

Deputy O’Keeffe was speaking during a Fianna Fáil Private Members Debate on the Tillage Crisis in Dáil Éireann.

“Tillage farmers in East Cork took a double hit – that is farmers whose winter crops were sown during winter 2015-16 were storm damaged due to the salt drift created by a sea mist,” he said.

Deputy O’Keeffe said: “In an effort to claw back their harvest, these farmers in turn replanted the land with spring crops. As I told the Minister (of Agriculture) in the chamber, these farmers ended up losing their crops as a result of adverse, irregular weather conditions. These farmers have lost out financially, and in many cases, their futures are at risk.”

He said Fianna Fáil called, during the debate, for a compensation package to be made available to tillage farmers affected by the crisis.

Deputy O’Keeffe said: “Last year, the Department of Agriculture had an underspend of €86 million, so there is money available to support farmers get through difficult time.”

In response, Minister Creed said he was “fully aware” from first-hand experience of the difficulties tillage farmers had to contend with in 2016 – a year, that was challenging both in terms of market returns and difficult harvesting conditions.

He said for this reason he convened a Tillage Stakeholders Forum last October which included representatives from all strands of the sector. Following a meeting, the Minister subsequently initiated a number of responses to address key issues raised at the forum.

What was identified was the need for access to low-cost flexible finance to replace more expensive forms of short-term credit which is being addressed through the introduction of a €150 million Agri Cash Flow Loan Support Scheme at an interest rate of 2.95%.

This scheme which includes a three year ‘interest only’ repayment facility has been developed in conjunction with the Strategic Banking Corporation of Ireland (SBCI) and is expected to be available by the end of this month.

This scheme is part of a “three pillar strategy” in response to income volatility announced in the 2017 Budget, along with additional tax measures and farm payments.

One of the tax measures, agreed with the Minister for Finance, concerns an adjustment to the current ‘Income Averaging’ system, which will allow for an opt-out in an exceptional year. Minister Creed said this is available for the 2016 tax liability, and will go some way towards addressing cash flow concerns.

As an additional support to cash flow on farms, including Tillage farms, advance payments were made in 2016 in respect of the Basic Payment and Greening Payment schemes.

These payments commenced on October 17 last which is the earliest possible date by which payments can begin under the governing EU Regulations, with the addition of balancing payments from the 1 December.

Minister Creed said to date €1,168 billion has been paid out to more than 122,889 farmers and payments are ongoing.

“Payments in excess of €195 million have also been made to more than 91,000 applicants under the Areas of Natural Constraints scheme. Also a TAMS Scheme, specifically tailored to the tillage sector, is due to open shortly. This Scheme will support grain growers in achieving further economic efficiencies and details will be made available in the near future,” he said.

Minister Creed plans to convene a further meeting of the stakeholder’s forum shortly to amongst other things evaluate further measures for the long term sustainability of the tillage sector, pending the drawdown of the Agri Cash Flow fund and the resulting utilisation of ‘de minimis’ requirements, including in regions affected by a poor harvest in 2016 due to inclement weather.