Earlier this week, Minster for Agriculture Michael Creed announced details on how the €100m Brexit aid package would be distributed to farmers. While the finer details are still be established, the conditions attached to what will be known as the Beef Exceptional Aid Measure (BEAM) do not appear overly complex.
Sweeping exclusion
However, one area of concern would be the sweeping exclusion of farmers milking cows who finish their own animals. On the surface, it is understandable given the income disparity between milk and beef production. But by excluding dairy farmers operating an integrated dairy-beef system Minister Creed runs the risk of driving more farmers down the route of selling calves during the peak spring months.
Neither Minister Creed nor Commissioner for Agriculture Phil Hogan can with any credibility turn their backs on these farmers
Allowing dairy farmers operating an integrated dairy-beef system to claim support payments on homebred stock would alleviate this problem. The introduction of a homebred clause, which should exclude cull cows, would also address the situation where a farmer operating a suckler and dairy herd is currently excluded.
Price collapse
While time should be spent on addressing the issues around the existing fund, the IFA is right to be refocusing on securing further funding for the ongoing crisis within the beef sector. Since the initial fund was announced, farmers have seen beef prices collapse by a further 30c/kg or close to €100/head. In many cases the cost of production associated with bringing these animals through to slaughter is significantly higher because of a prolonged housing period.
Neither Minister Creed nor Commissioner for Agriculture Phil Hogan can with any credibility turn their backs on these farmers. In establishing the initial fund, both men acknowledged that Brexit had a direct impact on farm incomes during the spring. It is clear from the collapse in beef prices over the past two months that as the UK stumbles towards a no-deal Brexit, the impact on our beef trade is becoming even greater. The response by the Commissioner and Irish Government must reflect the ongoing crisis. The impact of Brexit on Irish farmers didn’t stop at the end of the reference period on 10 May. If anything, it has only worsened.
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