IFA representatives have spelled out the steps that they say will “deliver positive change for farmers”.

These range from financing and farm scheme supports to farm assist and the abolition of EU import tariffs on fertiliser. IFA president Joe Healy said Tuesday marked the start of “a major IFA campaign to secure measures that will relieve the extreme income pressure being felt by farmers in almost every sector and every county of Ireland”.

Financing

On financing, Healy has said that the income crisis is being compounded by “a clear market failure” in the Irish financial sector.

“The cost of financing short-term working capital on farms is very high, with average quoted rates for overdraft facilities of 8%, and higher rates for merchant credit. These rates are totally out of line with interest rates of 2% or less available to some farmers on the continent,” he said.

The president added that the EU Agriculture Council has recognised the need to address cashflow pressures on farms with provision for state aid through low interest loans or loan guarantees.

“Our Government needs to move now to provide low-cost short-term loans to alleviate cashflow pressures across all sectors,” he insisted.

Farm scheme supports

Healy wants the number of those who can enter GLAS raised to more than 50,000. The limit is currently 50,000 farmers over the lifetime of the scheme.

He also wants to bring forward the Government commitment to increase Areas of Natural Constraint payments to the upcoming budget. As revealed in the programme for government, the Fine Gael-led minority government has promised to increase funding in this area by €25m in Budget 2018.

Healy also wants to see a repeat of last year’s 70% advance on the Basic Payment in October 2016.

Their abolition had a dramatic effect on the qualification criteria for Farm Assist

Meanwhile, Healy also wants a reopening of the Beef Data and Genomics Programme this year as he says that “despite their economic importance, beef farmers are not receiving a fair and sustainable income from this enterprise”.

On the new €25m sheep scheme, Healy says the scheme must be “simple and effective” and place “minimal costs or bureaucracy on farmers”.

Farm assist

On the farmer support scheme, Farm Assist, Healy says the review of the programme must reinstate the income and child disregards abolished by the previous minister, Simon Coveney.

“Their abolition had a dramatic effect on the qualification criteria for Farm Assist and, with farm incomes under severe strain across most sectors, it is important that changes are made and the assessment process carried out in a fair way reflecting the volatility of farm incomes,” he said.

Listen to an interview with IFA Munster Regional Chair John Coughlan on farm incomes below

Abolition of EU import tariffs on fertiliser

Finally, Healy urged the Government to take a strong supportive stance on the campaign IFA is leading for the abolition of EU import tariffs on fertiliser.

“A report by the International Food Policy Research Institute, commissioned by IFA, clearly shows a failure of competition in the fertiliser market, costing European farmers up to €1bn,” the IFA president said.

“A strong government stance is required to support the abolition, which will deliver between €50m and €70m in annual savings for Irish farmers.”

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