A funding application for £124m of coronavirus support for the NI agri food industry has been sent to the Department of Finance. The bid was submitted by DAERA and most of the aid is needed to cover costs that will be put on farmers as a result of an expected disruption in food processing.“It is assumed that around 20% of product will not be moving off farms from around three months from April because of restrictions in processing chains. This is estimated to cost around £105m,” a document prepared by DAERA officials reads.
A funding application for £124m of coronavirus support for the NI agri food industry has been sent to the Department of Finance. The bid was submitted by DAERA and most of the aid is needed to cover costs that will be put on farmers as a result of an expected disruption in food processing.
“It is assumed that around 20% of product will not be moving off farms from around three months from April because of restrictions in processing chains. This is estimated to cost around £105m,” a document prepared by DAERA officials reads.
The briefing paper was sent to Stormont’s agriculture committee and states that the “most impacted sectors” are expected to be dairy, poultry, pigs, beef, sheep, horticulture and eggs.
DAERA officials said that a combination of slower processing speeds due to social distancing measures in factories, reduced market outlets and a shortage of storage for finished product is putting pressure on farms to “hold stock and/or dump product”.
“In addition, if there are any general market disturbances, DAERA would be looking for both national and EU funding,” the briefing paper states.
However, DAERA Minister Edwin Poots indicated early on that it is unlikely Stormont’s Department of Finance will be able to fully fund an initial coronavirus aid package for NI agri food.
Lobbying for financial support is therefore continuing in London and Brussels. A teleconference meeting between the UK’s main farm organisations and Defra Secretary of State George Eustice is scheduled to take place on Thursday afternoon.
Waste disposal
The other main part of DAERA’s £124m funding application includes £16.7m for the environment, particularly waste management.
The briefing paper raises concerns that the COVID-19 pandemic could lead to closure of rendering facilities which would reduce the capacity for disposing of animal byproducts and fallen stock.
DAERA officials have agreed “a disposal contingency plan” and position papers have been drawn up which includes “burial of fallen animals on farms”.
The funding application also includes £1m of support for the Assisted Rural Travel Scheme and for Cookstown-based charity Rural Support.
The last element of the bid includes £1.5m of funding for fisheries. An aid package for the NI fishing industry has already been announced by Minister Poots and includes monthly payments of up to £4,550 per vessel.
Follow updates online at www.ifj.ie/ni.
Read more
Processing restrictions could cost NI farmers £105m
Agri food needs £100m crisis aid
This is a subscriber-only article
SHARING OPTIONS: