2026-07-09

11. Deputy Colm Burke asked the Minister for Agriculture, Food and the Marine the additional measures he is considering to support farm incomes in light of rising input costs and challenges facing the agricultural sector; and if he will make a statement on the matter. [52226/26]

What additional measures is the Minister considering to support farm incomes in light of rising input costs and challenges facing the agricultural sector, and will he make a statement on the matter? I know recent publications showed an increase in farm incomes but that was for the previous 12 months. The big challenge now is in relation to the cost of fertilisers, fuel and electricity. There is a really difficult challenge ahead for the farming community.

I thank Deputy Burke very much for raising what is no doubt a key point. From early 2021, the Central Statistics Office, CSO, agricultural price indices, which measure the level of input costs and output prices paid and received by farmers, saw significant growth and volatility relative to previous years. Unprecedented shocks including Brexit, the Covid-19 pandemic and Russia’s illegal invasion of Ukraine contributed to these trends. The conflict in the Middle East renewed pressure on global supply chains and has emphasised our vulnerability to changes in the availability and price of fuel and fertiliser both in Ireland and the EU. Input cost increases have serious implications across all sectors in our economy, including the agrifood sector, adversely affecting farmer incomes and food affordability. Furthermore, the elevated cost base of the sector is a risk to its overall competitiveness. While 2025 was a strong year for farm incomes, with average family farm income estimated to be up by about 49% in the national farm survey, 2026 has seen higher input costs and lower output prices. The CSO reports on output prices and input costs on a monthly basis and my Department will continue to monitor their effects on farm income and viability. The Government recognises the exceptional pressures rising fuel costs place on farmers, contractors and fishermen and fisherwomen. A substantial support package has been put in place, with the full removal of all non-carbon excise on green diesel. The recent Government announcement of the further extension of the full excise rate until the end of August will provide reassurance and certainty to farm families and businesses. In addition, I introduced the fuel income support scheme as a targeted income support to assist farmers and agricultural and forestry contractors facing unprecedented increases in fuel costs. I also put separate targeted schemes in place to support the fishery sector, which the Minister of State, Deputy Dooley, has been administering, and the specialist horticultural grower sector, which the Minister of State, Deputy Collins, has been overseeing. In total, €100 million funding has been made available to support these agrifood and marine sectors and I expect payments under these schemes to commence in the coming weeks.

I thank the Minister. I fully accept that a huge amount of work has been done over the last three to four months, especially in relation to fuel costs. The issue we are now looking at over the next 12 months is the fertiliser cost increase in view of the conflict in Ukraine and also the fact that while on the one hand, we thought the conflict in the Middle East was at an end, it now appears to be resurrecting itself again and, therefore, there is concern about increased costs in relation to fuel, electricity and fertilisers. In relation to fertilisers, in particular, we have the carbon border adjustment mechanism, which applies to a carbon-related charge in imported carbon-intensive products, including fertilisers. There are going to be additional costs for the farming community over the next 12 months. The question is about how we need to plan for that. I know it changes day by day and I fully accept that. The challenges are there and, as the Minister said already, there is a substantial decrease in relation to incomes and consistency in production. That needs to be taken into account as well.

Deputy Burke's points are well made. I can assure him and the House of one thing, which is that there will be no complacency from me or my colleagues in the Department of Agriculture, Food and the Marine in terms of the price pressures this has on all of our sectors. Our sectors are very vulnerable. As I pointed out in my earlier answer, we had a good year, by and large, in terms of commodity prices for our products last year, but it is the input costs that can really get people when something like this happens. We saw it with the illegal invasion of Ukraine by Russia back in 2022 and the knock-on impact that had on energy costs and input costs for farmers, which was significant. Commissioner Hansen has put forward a support package on the fertiliser side. The fuel impact was real and immediate. The fertiliser impact was real too; it is just that there is a lag with that. In allowing for that impact and not knowing where we will be in the autumn as well, there will be an allocation of €15 million under the fertiliser support scheme from the Commission. I am working through the opportunities to try to add to that and how we would do that with a mechanism that would be real for farmers. I reassure the Deputy that I am in no way complacent and absolutely determined to support farmers through this very challenging time.

Another area of real concern is tillage, where there is a decrease in those involved. It is very intensive. This is again an issue with costs, especially for vegetables. For instance, about three years ago I heard of carrots being imported from Israel, yet we cannot produce them here in a cost-effective way while giving a return to the growers. One area we have let slip completely is vegetable production in this country. We are now reliant on vegetables being imported from outside of Ireland. Only a very small number of people are in it now. We need to look at how to keep them in it and increase the number of people who are producing vegetables here.

I was delighted to be able to introduce the tillage sustainability support scheme earlier this year. I have not been found wanting in standing up and supporting a tillage sector that has been under pressure in recent times. The same applies to horticulture. It is gravely concerning that the vegetable and fruit crops element has been greatly narrowed down. We have lost businesses in that sector such are the tight margins. In terms of that market here in Ireland and what Irish consumers consume, a key reason Government set up the Agri-Food Regulator, and why I gave additional funding and additional powers to that regulator last year, is to support it in ensuring equity in the relationship between the primary producer, the processor and the retailer. Any sharp practices on the retail side need to be examined and rooted out. In that sector in particular we see products being sold at very low prices, demeaning the value of Irish vegetables, which is not in any of our interests as an island nation.