“There’s a difference of opinion between some farm orgs as to how €11m will be spent,” chairman of the joint oireachtas committee for agriculture Pat Deering said, referring to the European Commission’s aid package announced last month.

“In my view it has been allocated to every livestock farmer in the country. If given out as a flat rate tool it will be only €200 or €300 per farmer. I think it would be of far more benefit to use it to create a financial tool for farmers that would allow them to access money with low interest rates.”

Deering was speaking at an IFA meeting on dairy incomes in Kilkenny on Wednesday night. He added that he has also urged the government to match the Commission’s funding in order to bring it to a total value of €22m.

“This package has to be agreed by the end of September,” Deering said. “I will carry your views back from this meeting tonight to the Minister. This needs to be put to bed ASAP.”

Milk price

He was not immune to the sentiment from dairy farmers in the room. Judging by the questions speakers faced, many farmers are angered about milk prices at the moment.

“Milk price in 1995 was 28c/l and it’s now 23c/l. The problem is that the costs have increased by 50% in that time frame and that’s what is crippling farmers at the moment,” said Deering, likening the abolition of quotas to skipping straight from junior level hurling to senior; opening up Irish farmers to the volatility of world prices.

“In the years to come we will endure the same difficulties, maybe not quite as bad but they will come. How we deal with those now will determine how we go forward.

“I think the 70% advance in the Basic Payment will be a huge help to cashflow.”

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Farming organisations differ on how €11m from EU can be spent