The Irish Farmers’ Association (IFA) has described an emergency funding package announced for the tillage sector announced yesterday (Tuesday, October 3) as being “way off the mark”.
Minister for Agriculture, Food and the Marine, Charlie McConalogue and Minister of State for land use and biodiversity with special responsibility for horticulture, Pippa Hackett, announced the distribution of €9.5 million under the EU Agricultural Reserve for the tillage and horticulture sectors.
The reserve fund provides for emergency financial support for agricultural sectors affected by specific problems impacting on the economic viability of agricultural producers, such as weather events.
Emergency funding for tillage
Under the funding package, the tillage sector is set to receive €7.1 million of the €9.5 million total allocation. The remaining €2.4 million will be allocated to the horticulture sector.
For tillage growers, a flat-rate payment of €28/ha will be made on the area of oilseed rape, winter and spring oats, barley, wheat and rye declared under the Basic Income Support for Sustainability Scheme (BISS) in 2023.
The minimum area for payment will be 5ha and payments will be capped at 100ha per grower.
IFA Grain Committee chair, Kieran McEvoy said: “Not putting national funding alongside the €7.1 million EU Agricultural Reserve for the tillage sector was a missed opportunity that the [agriculture] minister must fix in the upcoming budget.
“The €11/ac payment is miniscule compared to the financial challenges on the ground, in a year when growers are hit with a significant drop in cereal prices; moderate to very poor grain yields in all crops; and very high input costs.
“Some farmers are still battling to try and salvage what they can from the last of the harvest. Some crops will be left in the ground. Margins are being decimated. Negative or minimal financial returns will be the norm for growers in 2023,” he added.
McEvoy said the minister has seriously underestimated the challenge on the ground and under-delivered with this latest scheme.
“It certainly could have been a lot more meaningful, because the [European] Commission gave member states the opportunity to complement agricultural reserve funding with 200% funding from the National Exchequer,” he continued.
“That would have been another €14 million + into the scheme that certainly would have made it more meaningful for struggling farmers.
“The minister instead has chosen, or failed to deliver, at a time when tillage farmers are being decimated. It’s very demoralising,” he said.
“Confidence is low among tillage farmers and action is needed to try and ensure the tillage area does not decline further in 2024.”