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In a written response to an enquiry from Sinn Féin MEP Matt Carthy, EU Agriculture Commissioner Phil Hogan has said that in light of a number of factors, he does “not consider it necessary for the Commission to propose at EU level a specific support package for the cereal sector and tillage farmers”.
The Commissioner gave a number of reasons for his decision, including the fact that the situation varies greatly from one member state to another.
“In some member states like France or Ireland, the 2016 cereals harvest was indeed poor, while in others like Spain or Romania it was very good,” he said. “Overall the EU cereals market situation is still balanced, with existing stocks ensuring market supply.”
Cereal prices are higher in Ireland than in various other member states
Hogan added that although the EU cereals prices may be considered rather low (€160/t of wheat approximately), they are still “well above the intervention price”.
“This is also true for cereal prices in Ireland where, according to quotations received from Irish authorities, market prices have been around €160/t for wheat and €150/t for feed barley in October 2016. With these levels, cereal prices are higher in Ireland than in various other member states.”
Concluding, Hogan said the Commission would be available to further discuss any specific support measures with the Department of Agriculture that may be proposed at national level.
Creed rejects calls for tillage fund
However, Minister for Agriculture Creed recently rejected fresh calls for a tillage fund to help farmers in the west who have had a poor yield in 2016.
Individual growers experienced crop losses running from 25% to close on 50%
Replying to a parliamentary question from Fianna Fáil Kerry TD John Brassil earlier this month, the minister said there is “no specific funding available for losses due to poor weather conditions”.
The minister has been under pressure to announce a tillage crisis fund from opposition TDs and the IFA since early October, when the most difficult harvest tillage farmers have faced in years drew to a close. A comprehensive survey of the farmers affected by dire weather this year, carried out by the IFA, in consultation with Teagasc and the grain trade, indicates that individual growers experienced crop losses running from 25% to close on 50%, with straw loss averaging about 50%. This is also the fourth year in a row where prices have failed to cover the costs of production.
At a meeting of the Joint Oireachtas Agriculture Committee in early December, IFA president Joe Healy made the case for a €5m aid package for the sector.
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