A global challenge

In the news have been European Commissioner for Agriculture, Janusz Wojciechowski; Minster for Agriculture, Food and the Marine, Charlie McConalogue; president of the Irish Farmers’ Association (IFA), Francie Gorman; Irish Cattle and Sheep Farmers' Association (ICSA) president Sean McNamara; and Teagasc.

Minister McConalogue announced at the Tullamore show his intention to form a new Commission on Generational Renewal in Farming. Fancy words but put simply, the time has come for an ‘honest and absolutely objective look’ at farm supports to determine whether they are appropriate to address the present challenges, is how he put it. He said that encouraging young people into agriculture is a global challenge, even with the income supports already in place for young farmers, such as higher rates of grants for capital investment, increased access to finance, and significant agricultural taxation reliefs.

Commissioner Wojciechowski is calling for yet more changes to the Common Agricultural Policy (CAP) in 2025 including a redistributive payment for sustainable mixed farms; this on top of a raft of EU subsidies and incentive payments.

The IFA president advised that only seven per cent of farmers are under 35, a figure that has more than halved over the last 20 years. Similarly, only 28 per cent of all farms are classed as viable, meaning a staggering 72 per cent of farms are not. All of the above provides little or no incentive for the current and upcoming generations to take over.

The Teagasc Farm Survey declares that the average farm income has dropped by 57 per cent with dairy incomes down 69 per cent. This brings real concerns that farmers may struggle with repayments.

The ICSA president believes the CAP budget must be significantly increased to ensure the sustainability of food production let alone food security. He doesn’t know why any young person would want to dedicate themselves to farming when they can see the harsh reality of what they will receive in return.

Cheap labour

All of the above clearly indicate that we have a major problem in farming now and in future generations. The stark reality is that support structures for agriculture are broken and are not fit for purpose and may not be for some time. The stream of financial incentives are there to keep the food chain supplied; it is a shame that’s on the backs of farm families, who are, it seems, a source of cheap labour. Constantly changing incentives do nothing to address the fundamental problem that farmers are not paid a sustainable price for their produce. If they were, why are we paying billions in subsidies? Furthermore, who benefits most form these subsidies; mostly only the very largest of farming enterprises and those who follow farmers in the food production chain.

Urgent review

An urgent review is needed of how farmers can be paid a fair price for their endeavours –based on the size of their enterprise and taking into account all inputs. The system that allows food processors, supermarket chains, and milk cooperatives to dictate prices is no longer acceptable.

We have a serious problem with the current system of subsidies, and I believe that CAP is not working in the best interest of the farming community. If the EU and national Governments want to reward the present generation of farmers fairly and, in so doing, bring on the next generation, they need to come down from their ivory towers. A solution is required urgently. I could be more blunt, but I don’t think it would get past the editor! If my contractor friends think I have forgotten them in this article have another read. If the problem of farmers getting a fair deal is sorted, it will make it easier for you to get a fair price too.