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Minister for Agriculture Michael Creed quashed hopes for a crisis fund for the grain industry at a Dáil debate on Wednesday.
Creed was responding to a question from Charlie McConalogue, Fianna Fáil spokesman on agriculture, who said he was “hopeful” the minister would raise the topic of a crisis fund for tillage farmers at the upcoming council of EU agriculture ministers in Brussels on Monday.
However, Creed responded that “there will be no prospect of a bailout package for the grain industry until there is a clamour for a response at European level from the main grain-growing countries”.
When 27 or 28 member states jump up and down in unison about the dairy industry, the Commission responds
He added that “neither the French, Poles, Hungarians, Romanians nor any of them are jumping up and down and saying there is a crisis in their grain industries.
“When 27 or 28 member states jump up and down in unison about the dairy industry, the Commission responds. Unfortunately, member states are not jumping up and down about the grain industry,” Creed told McConalogue.
Creed had taken time out of his chairing of the very first tillage forum to answer McConalogue’s questions on the crisis facing tillage farmers in Ireland.
Low-cost flexible finance
Minister Creed added that alongside a crisis fund for tillage farmers having no support at EU level, if he were to introduce a fund for tillage farmers, every attempt to salvage whatever is salvageable from the harvest would cease.
“That which can be salvaged at this stage may be a small fraction,” he said. “However, if I were to introduce a fund, every endeavour to salvage whatever is salvageable would cease. I want to ensure the endeavour continues. This point was made at the forum today and was reflected in contributions from all sides.
Only a full picture can inform us on the appropriate policy instruments that are being considered
“We are anxious to get a full and accurate picture in respect of the endeavour,” the Minister continued “and where a line can be drawn under it to say beyond this point no further harvest can be salvaged. We are far from that stage. Only a full picture can inform us on the appropriate policy instruments that are being considered.
To this end, Creed referenced the introduction of low-cost flexible finance for tillage farmers under de-minimis state aid rules, which he said he hopes to announce shortly.
“I have been engaged in intensive consultations with the Government Departments, the EU Commission and the Strategic Banking Corporation of Ireland with a view to developing a product that is better than anything in the marketplace. I hope to be in a position to make an announcement on this shortly,” he said.
Farmers’ plight
The Fianna Fáil agriculture spokesman talked passionately about the farmers’ plight, highlighting the fact that “farmers on the west coast from Kerry and Cork up to the county of Donegal have been unable to get crops in.”
“There is no doubt that there has been a growing crisis in our tillage sector in recent weeks as the weather has failed to improve,” he said.
McConalogue said that the tillage forum is “welcome”, but added that he was hopeful for a “more substantial response” from the Government in terms of what grain farmers are seeking across the country.
Many will simply not be able to manage their finances, pay their bills this year or remain in the sector
“While affordable credit for cashflow pressures is necessary for many in the farming industry, unless there is a recognition of what farmers – who will be ploughing this year’s crop back into the ground in the coming weeks because they were not able to get it and who are facing merchant bills, contractor bills and conacre bills for those who rented the land for which they are now getting no return – are facing, many will simply not be able to manage their finances, pay their bills this year or remain in the sector,” he told Creed.
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