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A motion which called on Agriculture Minister Edwin Poots to ensure that beef and sheep farmers in hill areas get a share of the £25m support package coming from the NI Executive was passed by MLAs at Stormont on Tuesday.
Ultimately, however, it is still for minister Poots to decide how the money is finally allocated, and during the Stormont debate he was critical of a number of MLAs who made a case specifically for farmers in Areas of Natural Constraint (ANC).
“The debate about funding is not about uplands or lowlands, it is about losses faced as a consequence of COVID-19,” responded the minister.
The Assembly motion was brought forward by Sinn Féin chair of the Stormont agriculture committee Declan McAleer, who argued that £15m of the £25m should go to beef and sheep farmers.
He also maintained that the loss of ANC payments had compounded the issue of low incomes in hill areas
He said that farmers in both sectors had suffered lower prices, higher costs, had businesses disrupted due to the closure of marts, and because of historic low incomes, would receive negligible amounts from the coronavirus self-employed income support scheme. He also maintained that the loss of ANC payments had compounded the issue of low incomes in hill areas.
However, he did not set out how he thought the money should be paid out, although he had previously suggested that it could be allocated based on entitlements held.
Responding, Minister Poots pointed out that the direction he received from Finance Minister Conor Murphy was that the money should go to farmers who have been hit by lower prices due to COVID-19, with specific reference made to dairy, beef and ornamental horticulture.
I cannot just give money out willy-nilly to any group
He maintained that industry lobby groups had put forward a similar argument for targeted support.
“I cannot just give money out willy-nilly to any group. It has to be done based on evidence alone. It is not something that should be distributed to all farmers. This money has to be allocated on the basis of COVID-19. It has to be based on history,” he said.
However, he did suggest that sheep farmers could be in line to receive some of the funding. “The sheep farmers who took losses over two to three weeks are the ones who should be getting the compensation,” he said.
He also acknowledged that other sectors are now facing hardship, including potato producers and broiler breeders.
Undertaking
In effect, therefore, most sheep farmers and suckled calf producers will not receive any of the £25m package. However, minister Poots gave an undertaking that if there is a period of sustained poor prices over the summer and autumn, he will return to the issue.
“If it is demonstrated then that there has been a substantial hit, I will be very happy to go to Conor Murphy. I will be happy to push for funding,” he said.
UFU backs NIMEA ask for beef
The chair of the UFU beef and lamb committee, Sam Chesney, has called for £13.2m of the £25m coronavirus support package to go to the beef sector.
The union wants to see £50/head paid on cattle in the first six months of 2020
Following a meeting with Agriculture Minister Edwin Poots, along with representatives from the Livestock and Meat Commission (LMC) and the NI Meat Exporters Association (NIMEA), the UFU representative said that the sector needs this support if it is to be sustained.
The union wants to see £50/head paid on cattle in the first six months of 2020 and a further £60/head during the seven-week period from the end of March. It is a similar request to that put forward by NIMEA last week.
For sheep, the union has also asked for a payment of £8/lamb (hogget) slaughtered for the four-week period ending on 28 March to week ending on 18 April. That would include NI lamb slaughtered on both sides of the Irish border, although with numbers low at that time of the year, it is only £270,000 going to the sheep sector.
It is vital that the funding for the agri-food sector is allocated to those farmers who suffered the most loss
In a statement, Chesney also made reference to a study commissioned by the LMC and completed by Leicestershire based The Andersons Centre. It showed that at the height of the pandemic a loss of £238 per beef carcase and £31 per lamb carcase occurred, once all costs are added in.
“It is vital that the funding for the agri-food sector is allocated to those farmers who suffered the most loss. The focus must be on slaughtered cattle in NI and slaughtered lambs in both NI and the Republic of Ireland,” said Chesney.
UFU could seek additional support
The president of the UFU, Ivor Ferguson has said that his organisation will continue to monitor market developments closely, and will seek additional support from the NI Executive if necessary.
Commenting after meeting Minister Poots, Ferguson said beef finishers and dairy farmers were the two sectors most affected by a downturn in markets due to coronavirus, but he was also aware of losses in sheep, ornamental horticulture, potatoes and broiler breeders.
“For some of these sectors the market impacts are still ongoing, while for others the situation is stabilising. We do, however, recognise that to get this funding assigned quickly to those who need it and to comply with state aid rules, an historic approach and a simple delivery mechanism are necessary,” said Ferguson.
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