Editorial: easy answer to Trump tariffs - make farming great again

This is the week that Government and politicians should realise that farming and food is our most important and competitive indigenous industry. This week, they are getting a clear reminder that all money made from food and farming is circulated locally and helps drive rural towns and villages. When one tariff decision could potentially, overnight wipe 80,000 jobs out of the pharmaceutical sector, it is time to recognise that investing in farming and food production is one of the best things that our Government can do.

So instead of livestock reductionist policies driven by schemes such as ACRES, organics, forestry, nitrates, and CAP, that have driven livestock numbers down in Ireland, and the EU, why not invest properly in new and old technologies to drive on our food, farming and native grain industry.

Let’s invest in new science to allow the sector to meet its obligations for climate and the environment: investment in new slurry technologies, new feed additives, genetics and nutrient monitoring, etc. Let’s properly test new initiatives at scale. We need properly run, elite nucleus herds to produce future bulls and heifers to drive superior genetic gain for Irish suckler and dairy-beef grass-based systems. We need much more investment at local catchment level in water monitoring and information transfer. We need more grass variety testing and investment at scale that is unique to Ireland.

Let’s not further decimate our grass-based sector that countries around the world look at with envy. We need to be brave and stand up for a production system that is almost unique and one founded in quality, high welfare standards, traceability and sustainability.

Last year, we commissioned KPMG, one of the top-four accountancy firms, to establish what was going to be the bottom line consequence of the current CAP policy, the nitrates implications and the emissions reduction policy given current policy trajectory.

KPMG’s report found that it could cost up to 60,000 jobs upstream and downstream, and cost the industry €3.1bn in lost revenues.

Given the output increases over the last year, that net cost has undoubtedly increased further. So when our Taoiseach Micheál Martin, or Minister for Finance Paschal Donohoe are asked how to balance negative Trump tariff cuts, there is a logical answer – invest in the proven sector that has been around for over 5,000 years. A sector where all the money generated is spent locally and where there are fewer, if any, local employment alternatives.

Farming and food production kept rural Ireland alive during the last recession between 2008 and 2013. Food and farming needs to be given the chance to keep Ireland out of another potential recession as a result of US tariff policy.

Livestock farmers that have persevered with farming are finally now being rewarded for years of making little or nothing. EU funds kept these food and farm businesses alive when output prices were on the floor.

Listening to GIRA consultant Christophe Lafougere last week at the Bord Bia dairy markets seminar, he presented numbers that suggest all the big dairy countries and indeed New Zealand, are in a downward spiral of milk supply. A downward spiral driven by policy decisions and the impact of bluetongue.

The core driver of the beef price spike is limited supply and ongoing demand. Last year, we saw three and four week old calves in the US make between $700 and $1,000 per head as the US herd fell to its lowest level since 1951. Irish prices are heading in that direction now, in a year that Bord Bia forecasts our factories will process 87,000 less cattle.

Of course the output price increase is not going straight to the bottom line – input costs have skyrocketed over the last three years. Nevertheless, our competitive advantage as a country is converting grass to milk and meat protein.

Minister Heydon, An Taoiseach Micheál Martin and Tánaiste Simon Harris – let’s make Irish farming great again. Ireland should not be solely dependent on foreign investment in a sector that is relying on an attractive corporate tax rate.

Even if President Trump blinks this time around on agri tariffs, let’s take the initiative and keep control of what is good for rural Ireland.

Irish food companies like Glanbia and Kerry saved Micheál Martin’s blushes in the White House on St Patrick’s week.

Given the right investment and policy, food and farming can save this country from recession again.