A long list of Challenges

The Department of Agriculture, Food and the Marine had indicated that a tillage-support payment would be made to farmers before the end of March, and in fairness to the minister, he delivered on this. What has been promised is a tillage sustainability support scheme totalling €29.1 million and benefitting just over 8,500 farmers. He explained: “I fought very hard for this in budget negotiations. It was really important to me that the money would be used in a targeted way for tillage farmers. I was very mindful that, as the spring planting season starts after difficult weather and difficult conditions, grain price challenges and increased production costs, a shot of confidence was required. I’m determined that there should be long-term support for the sector. The money will pay some bills, and it’s an important point of support for the tillage sector, coupled with the protein aid scheme and the straw incorporation measure. I am promoting ongoing efforts around improving and developing quality assurance schemes to increase the value of our native grains. Ultimately, we need to make tillage farming more economically sustainable.”

Vaccine cost subvention

When the first case of bluetongue was confirmed back in January, it certainly wasn’t the best news to start the year with, but it was ‘pretty inevitable’,  Minister Heydon said. Since then, 12 herds have had bluetongue detected, in counties Wexford, Wicklow, Laois, Louth and Monaghan. “We are going to have to learn to live with it,” the minister said. Vaccine approval and availability have been relatively straightforward, with some minor teething issues regarding quantity and costs. The vaccine will be included in the beef and sheep welfare schemes, which is a welcome development. The minister explained: “I have changed our approach in terms of approving the use of vaccines for 2026. I wanted to support farmers who adopt a vaccination approach, particularly from a breeding perspective, and for cattle and sheep farmers it makes sense to consider vaccination. Farmers can avail of the option to vaccinate within the beef and sheep welfare schemes.”
Market access assurance is also a priority for the minister. He explained: “I am also working on ensuring continuing market access, especially for live exports, including working closely with Minister Muir in Northern Ireland and adapting health certificates for many key export markets. We’ve progressed the market access piece and that’s important in terms of prices for cattle and sheep this year. Vaccine availability is another priority and where a commercial decision is made to vaccinate, I want to ensure ready availability.”

Defending government policy on fuel costs

The fuel package announced by Government last month, in response to increased financial pressures arising from the ongoing conflict in the Middle East, attracted much criticism from within farming circles. The price of green diesel rose by 50 per cent in March, but the Government’s drop of 3c/L amounted to a reduction of just three per cent. There was also an additional 2c/L drop in the National Oil Reserves Agency (NORA) levy.
The Irish Farmers’ Association (IFA) president, Francie Gorman, said this would ‘do little or nothing to help farmers and agri-contractors deal with the escalating cost of fuel’. Carbon tax accounts for 17c of the 22c tax on green diesel. In the last two years, that has increased by almost five cent per litre; and it is due to go up by 2.3c on May 1. The IFA has called for the immediate suspension of the carbon tax element on agricultural diesel and gas.
But Minister Heydon defended Government actions: “Feed price is actually the biggest driver of costs on farms, followed by fertiliser price. Fuel price impacts all those things as well. I’m aware of that. The Middle East war is the latest in several crises in recent years, including the Ukraine conflict and Covid-19. Where we end up, in terms of the impact of costs on farmers and contractors, especially fuel and fertiliser prices and supplies will be determined by how long this conflict lasts.”
He continued: “This has the potential to get very serious very quickly for farmers. I don’t underestimate the cost of fuel on that side. I made my case with Government colleagues and what Government agreed to was, in full recognition, that we can’t cushion everybody from the worst excesses of this conflict. This is an initial step, focussing on excise duty. There’s only 5.7 per cent excise duty on green diesel. This is a three-cent cut, coupled with the two cent NORA cut per litre. I understand that isn’t the extent of what farmers would have hoped for. The measures taken are in place for an initial two months. There’s no Government in the world that can cushion all the impacts of this conflict from their people.”

And on the cost of fertiliser, he had this to say: “The role that the Carbon Border Adjustment Mechanism (CBAM) will play in that is something that I’m working hard on with the departments of finance and environment. The war impact on fertiliser is potentially very significant. There is no mechanism to suspend the CBAM measures, but discussions are ongoing.
“On the broader point around carbon tax, agriculture is one of those sectors that benefits from the tax. The €170 million I received as part of my department’s budget for this year is from the carbon tax. Its suspension would impact farmer supports.”

CAP ambitions

Much has been said and written about the future funding of CAP and a potential shortfall of 20 per cent. Where will the money come from to offset this, and is increased national funding an option? Minister Heydon said: “I will use my role as president of the agri-ministerial council to ensure that we get as good a deal as possible for Ireland and for the CAP in the multi-annual financial framework (MFF). Eighty per cent of funding is ring-fenced, but that can’t be our end point. Food security is a key part of the context, and we see the impact that the conflict is having on energy security. The CAP has served us well in the past, and I am ambitious to ensure a properly funded, simplified CAP will be put in place. In the design of that next CAP, I need to secure two things. One is to protect the commonality of the CAP, the strength of us being in a single market. Also having what’s called subsidiarity, which is the ability and flexibility for member states to make their own decisions and design their own schemes that are suitable to their own needs.”