The Government will “assess very closely” the impact of Brexit on farm incomes as 2021 progresses, Minister for Agriculture Charlie McConalogue has said.

Minister McConalogue told RTÉ’s Claire Byrne show on 31 December that some assessments have indicated there could be a 13% hit to farm incomes as a result of Brexit.

“There is differing assessments in terms of what that might mean in terms of the impact [on farm incomes].

“There’s been some assessments that have indicated that you could have 13% of a reduction in farm incomes at the higher side due to the disruption.

“It’s the first time we’ve ever experienced this and we will have to assess very closely as the year commences what the impact might be and see what the real world reality is,” he said.

He said that it was really important to recognise that a Brexit deal was achieved.

He said the agri-food sector was facing, in the event of no deal, tariff walls of 70% on beef and 40% on dairy.

Impacts

“I briefed the Cabinet this week on the potential impacts on the agri-food sector and also in the fishing sector.

“The main impacts we will now see will be in relation to additional administrative costs in terms of doing trade with Britain because the fact is they’re now a third country and also the additional costs in relation to health certification and SPS checks which agri-food products have to undergo unlike any other products,” he said.

“Critically from a Government point of view and as Minister for Agriculture, Food and the Marine, there’s a clear commitment there that we stand ready to support our agri-food sector at all times.

“There’s been significant support in relation to working with the sector to prepare the sector for the changes that will come about also in terms of providing grant aid and financial support to companies, as well to deal with the additional work and cost that’s going to be involved for them,” he said.

Read more

Irish agribusiness shares struggle in difficult year for investors