Dairy farmers should not be vilified for expanding, European Commissioner for Financial Stability Mairead McGuinness has said.

She told the Irish Farmers Journal Future of Europe event at the RDS on Friday that when farmers began to expand, emissions and other issues contributing to climate change and animal welfare were not planned for.

Therefore, public policy now has to change.

“To vilify anyone is a horrible thing. Young farmers have gone into dairying because it has provided an income, but they’ve also borrowed heavily which is something to be mindful of,” she said.

Stocking rates

She acknowledged that if changes come to the nitrates derogation by way of a reduction in stocking rates, the margins of those who are very highly stocked will be affected.

“Policy will only change because there is a problem with the environment. I don’t think it is fair to say that anyone can have a stocking rate if it is causing a problem,” she said.

She also argued that there are other vulnerabilities in the dairy sector.

Issues such as labour and burnout could impact the longevity of the industry, she argued.

“The word ‘sustainability’ isn’t just about the environment,” she said.

Policy changes

She also said that it is important to give farmers ownership of policy changes.

“We need to acknowledge policy inconsistencies. A large group of farmers are frustrated and I acknowledge that,” she said.

The frustration around the CAP payment system, and the orientation towards hectare-based payments and environment payments, is based on a political decision

“Public policy in the seventies and eighties is very different to the public policy today around agriculture. The frustration around the CAP payment system, and the orientation towards hectare-based payments and environment payments, is based on a political decision.

“There may come a time when you need to say this is a reality, what do we need to do to deal with this reality,” she said.

War

Commenting on the war in Ukraine, she said the weaponising of grain by Vladimir Putin and the deliberate blocking of food is absolutely appalling.

Blocking food for people who need it as part of a war effort is “the worst of the worst”, she said.

Renewables

She also warned that Europe needs to look at dramatically ramping up investment in renewable energy to avoid energy rationing.

“Gas could be turned off and I think we are all aware of that possible reality,” she said.