The Rural Independent Group has slammed Budget 2023, saying that it fails to protect the incomes of farmers which are being “hammered by crippling input costs”.
Although welcoming the rollover of the Fodder Support Scheme and the Tillage Incentive Scheme, the TDs said that the measures are “completely insufficient” to mitigate against farm costs, which are now at least 40% higher than a year ago.
“Increased feed, fertiliser, energy and other costs simply cannot be sustained by many farmers,” TD Michael Healy-Rae said.
“Failure by the government to allocate once-off measures for farmers to mitigate this dire situation, will result in many farmers, particularly low-income beef and sheep enterprises, pressed to the brink with some forced out of business.”
The Kerry independent TD also said that the Beef Environmental Efficiency Programme – Sucklers (BEEP-S) provides no enhanced funding for suckler farmers.
“This is perhaps the clearest indication yet, that the government has no intention of supporting the 80,000 farmers engaged in suckler production,” he said.
“In reality, it represents a cow cull by stealth or through the back door.”
Healy-Rae said that the allocations for the new Agri Climate Rural Environment Scheme (ACRES) will not be sufficient to provide places for every farmer who is currently participating in an environment scheme.
The Rural Independents said that the decision to hike the carbon tax to €48.50/t represents “a major blow to hard-pressed farm families”.
In his budget speech yesterday (Tuesday, September 27), Minister for Finance, Paschal Donohoe said that the increase will be offset by cutting the National Oil Reserves Agency (NORA) levy.
The minister said this would mean that the price of fuel at the pumps would not increase.
However, Cork South-West TD and member of the Rural Independents, Michael Collins is not convinced.
“While government politicians spin this tax measure as an incentive for people to reduce carbon emissions, they fail to recognise that most people, including farmers, simply have no credible alternative to their current machinery, car or heating system,” he said.
“The carbon tax is a penalty charge on people going about their daily business. It is blunt and ineffective.
“This budgetary hike alone, will increase the price of a tank of motor fuel by €1.50, a 900L tank of home heating oil by almost €20 and a bag of coal by almost €1,” Collins said.
The TD added that the introduction of a 10% concrete levy in Budget 2023 “will have a deep and profound impact on farmers”.
“The levy will undermine farm investment and drive-up the costs of concrete and blocks even further.
“For instance, this levy will impact upon farmers’ ability to build a slatted tank, slurry or silage storage, grain storage facilities, animal storage units or any necessary building works on farms.
“All in all, this budget has failed to protect the incomes of Irish farmers. It has failed to provide the necessary and shield against the increasing input costs that our farm families need and deserve,” Collins concluded.