Concerns about family farms amid the unprecedented rise in costs of fertiliser, feedstuff and fuel have been raised in the Dáil by independent TD for Galway East Seán Canney.
Deputy Canney stated that support is urgently needed if family farms are to be rescued from a “wipeout” due to rising input costs creating severe problems for farmers.
Direct payments, a reduction in VAT and exemptions from carbon tax need to be considered, Deputy Canney stated, along with the end of below-cost sales.
Price regulation of farm products needs to be more transparent in order to protect farmers, stated TD Canney, who also added that input price hikes have a “huge knock-on effect”.
“This crisis extends beyond the farmyard and will further impact negatively on the cost of living for all,” Canney added.
Recently published figures by the Central Statistics Office (CSO) show huge financial challenges this year as input costs soar, “wiping out any marginal increases in output prices currently being received”, according to TD Canney.
Fertiliser prices went up by almost 25% within one month in December 2021 and increased by 86.9% compared to 2020 levels. Electricity prices (22%), fuel (39.5%) and feed (15.9%) also all increased in 2021.
Plastic prices have also doubled which resulted in additional costs for harvesting and silage wrapping, Deputy Canney added.
“The farmer has no avenue to recover these costs as the farmer is a price taker, and it is at the mercy of what price is prevailing on the day that he sells the beef or sheep at the mart, or at the factory gate.”
TD Canney further stated that farmers have “no power” over the selling price and are currently being left with the option of reducing output and selling of stock.
Considering the ongoing situation in Russia and Ukraine, Deputy Canney said, economic sanctions are expected to further drive up fuel prices and all other farming inputs.
Negative impacts will lead to less production and output, less income for the farmer and eventually higher food prices for the consumers, according to TD Canney.
He also stated that significant increase in input prices will see young people leaving the farming industry, which, he said, “will leave us a poorer country in the long term”.
“If we don’t have the supply chain of beef, lamb, milk and grain we will not sustain this industry and jobs in it.
“Viability of farm families and sustainable livelihood for an industry of great global reputation needs to be ensured,” Deputy Canney concluded.