AGRICULTURE & RURAL AFFAIRS PRIORITIES FOR YOUNG FINE GAEL 2016
PRIORITIES FOR YOUNG FINE GAEL 2016 AGRICULTURE & RURAL AFFAIRS
CONTENTS: 4 Introduction – Colm Taylor, President 5 Foreword – David Mc Laughlin, Chairperson 6
Dairy, Beef & Tillage
6 Sheep 7
Farm Investment
7 Education 8 Brexit and Ireland’s Agricultural Exports 9
Mental Health
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Jobs and Innovation
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Rural Broadband
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AGRICULTURE & RURAL AFFAIRS PRIORITIES FOR YOUNG FINE GAEL 2016
MESSAGE FROM YFG PRESIDENT A chara, Agriculture is the corner stone of our economy. It is an industry that brings jobs to every parish in the country. On entering government in 2011, Fine Gael put agriculture to the fore of its plans to get Ireland back working. Agricultural colleges are full to capacity with young people excited at the opportunities within the industry. However challenges still remain. Price volatility requires farmers to become more efficient to ride out peaks and troughs. The UK’s decision to leave the EU was unexpected and only offers uncertainty for farmers and the agri-food industry. Young farmers are best placed to adapt to the changing circumstances in Irish agriculture. This document outlines Young Fine Gaels priorities for Agriculture. It sets out objectives that we hope to achieve during the course of this government so as to ensure farming continues to prosper into the future. Yours sincerely,
Colm Taylor President of Young Fine Gael
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PRIORITIES FOR YOUNG FINE GAEL 2016 AGRICULTURE & RURAL AFFAIRS
FOREWORD FROM COMMITTEE CHAIRPERSON This document sets out a vision and priorities for Young Fine Gael in the areas of Agriculture and Rural Affairs in 2016. Alongside my colleagues on the Young Fine Gael National Executive, I had the pleasure of launching the Agriculture and Rural Affairs subcommittee in May 2016. We invited applications from interested members to join the committee and shortlisted the applicants based on their backgrounds, interests and experience to give us a wide spectrum of expertise, which is illustrated in this document. From my work as North West Regional Organiser for Young Fine Gael, I am familiar with the difficulties that face young people in rural Ireland and the challenges that are currently facing the rural economy. From rural broadband provision to supports for young farmers, this document offers proposals and solutions to many of the current, pressing issues that affect agriculture and rural Ireland. Today, I have the pleasure of presenting this document to Minister for Agriculture, Food and the Marine, Michael Creed TD. I hope the Minister will consider many of our proposals in his upcoming budget submission. I would like to thank the committee for their tremendous effort in compiling this document and I look forward to campaigning with them on these issues into the future.
David Mc Laughlin Chairperson, Agriculture & Rural Affairs committee, Young Fine Gael.
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AGRICULTURE & RURAL AFFAIRS PRIORITIES FOR YOUNG FINE GAEL 2016
DAIRY, BEEF & TILLAGE Milk Quotas
The end of milk quotas was heralded as an unprecedented opportunity for the Irish Dairy sector. However, increased output worldwide combined with lower demand from China and the ban on exports to Russia has caused a two-year slump, which has seen milk price fall by 40%. Currently, farmers are producing milk at below the cost of production. This has resulted in severe cash flow problems for farmers’ particularly new entrants and those who have recently expanded. Young Fine Gael Call on the Minister: • To match the amount provided by the EU and use the fund to provide a low interest cash flow loan facility. • To examine potential changes to the current taxation regime which could assist farmers in dealing with income volatility.
Fertiliser
Young Fine Gael call on the Minister to work with his counterparts in the EU to abolish tariffs on the importation of fertilizer. Fertiliser is a major input on Irish & European farms. A lack of competition in the sector coupled with protectionism carried out by the EU has resulted in fertiliser prices increasing disproportionately and exorbitant profits for fertiliser manufacturers. This would result in a saving of approximately €60 million annually to Irish farmers.
Live Shipping
Young Fine Gael commends the Minister for ensuring the reopening of live shipping of cattle to Turkey.1. Young Fine Gael calls on the Minister to ensure that the relevant state agencies actively assist Irish live exporters seeking to realise the potential of trade with Turkey. Young Fine Gael commends the Minister for withstanding pressure to halt all the live trade with Egypt. Halting the trade would have had a negative effect on Irish farmers. 1. ICMSA Focused on Turkish live exports, Irish Examiner, Thursday July 14, 2016.
SHEEP Knowledge Transfer Programs – Sheep & Beef:
Young Fine Gael calls on the Minister to continue the department’s promotion of knowledge transfer programs through Teagasc and to a greater extent encourage business skills to be actively taught and discussed through STAP and BTAP programs. With the ever-increasing requirement for additional investment in farm infrastructure to facilitate expansion and technical efficiency, business skills must be taught to young farmers to aid in their ability to adapt to uncertain markets and to make their farms more profitable.
Land eligibility:
Over the years, we have seen various different environmental schemes. These schemes have changed the farming landscape for hill and commonage farmers in particular. With REPS introduced a number of years ago, farmers were almost incentivized not to graze hills/commonages; right up until the latest GLAS scheme where we see a complete reversal of this and farmers being heavily penalized for land which is not sufficiently grazed. Young Fine Gael hereby call on the Minister to encourage The Department of Agriculture to adopt an approach that works with farmers by setting out an environmental plan with such farmers over a specified period of time to which no penalty will be imposed and an inspection carried out thereafter.
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PRIORITIES FOR YOUNG FINE GAEL 2016 AGRICULTURE & RURAL AFFAIRS
FARM INVESTMENT TAMS II Schemes: Capital Investment for young farmers.
The application procedure for TAMS II is extremely complicated and technical. The detail required by the department is input through a software program; which no technical support is provided for. The program has had many glitches from its introduction with advisers having no access to technical support from the department. The applicant must submit overlays and planning permission approval documents to the department before they receive any confirmation of attainment of the grant. Young Fine Gael propose that the department issue an offer of the grant before planning costs are incurred by the applicant, or offer a consultancy, without prejudice provided to the applicant by the department.
Grass Utilisation Fund:
Young Fine Gael supports proposals from Macra na Feirme that ‘A fund of €2million be made available to young trained farmers to purchase grass measuring equipment’ and to incentivize farmers to spread lime as required. Currently, under the departments Technology Adoption Programmes in Beef and Sheep, it has been established from a high volume of soil testing that much of the land in Ireland does not have adequate Ph values for optimum grass growth. Therefore, when an adequate amount of lime is applied to the soil, it will return a higher yield of grass growth. Many farmers are not aware of the high value that lime application applies to land and therefore young farmers should be incentivised to improve grass growth in an environmentally sound manner.
National Reserve for young farmers:
Young Fine Gael would like to resonate the calls from Macra na Feirme on the importance of the National Reserve for 2017 in order to get young farmers into the industry. Young farmers cannot be the victims of a startstop scheme. Budget provision for the National Reserve is essential on a yearly basis to fill the stopgap, which currently exists in the current program. The current program sees new and upcoming young farmers not able to avail of the same financial supports as other young farmers have done in 2015.
EDUCATION Green Cert. Courses
Under the new CAP reform proposals, young farmers have received an entitlements top-up with the requirement that they complete the Green Certificate course. These changes affect their farm payments during 2015, they must register to commence the course in 2015. Demand for Green Cert. courses has grown exponentially. However, fears exist for entrant young farmers on covering the costs of the course in order to avail of their top-up. Young Fine Gael calls on the Minister to instruct his department to devise a plan, which will help young farmers, cover the costs of the course so that they can avail of the top-up.
Proposed changes to delivery and structure of Agriculture courses:
The Agricultural industry in Ireland is seasonal and specialised. With this in mind, it can be difficult for a person involved in a farming enterprise to commit to a full year of studies, 10-12 months. Considering these courses cover a range of topics that may be applicable to all those in attendance. Young Fine Gael proposes the creation of six-week long modules that would be on offer throughout the year. For an example, a farm with a sheep enterprise will be busy from February right up to April but a cooling off period before the breeding season commences in September will occur where the person could commence on a short term course.
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AGRICULTURE & RURAL AFFAIRS PRIORITIES FOR YOUNG FINE GAEL 2016
This idea would be similar to Continuous Professional Development (CPD), where the person undertaking these modules would gain points on each module and build up to a certificate. It would involve undertake a number of core modules and specialised (elective) modules. As the current green cert course covers all agriculture topics some participates may lose interest during certain modules. For example, a beef enterprise owner may not have an interest in tillage or dairying so they wouldn’t need to take the modules. Each module undertaken by the student would gain a number of points say five and these would amass to a certain number such as twenty for a minor certificate or thirty for a major certificate and so on but there would be no maximum set out and no age requirements as this would allow continuous development. The student could undertake as many of these modules as they would like during the year and when they are scheduled to be taught. This would also enhance the possibility of upskilling for farmers. As newer methods and alternative farming ideas become available course could also be available to attend. For example, a six-week module on alternative farming persons or farm tourism.
Example of Core Modules:
Soil Science, Plant Science, Animal Science, Farm Management, Farm Health and Safety & Safe Use of Chemicals.
Example of Elective Modules:
Sheep Production, Beef Production, Dairy Production, Swine Production, Tillage, Poultry Production, Horticulture, Forestry, Agriculture Policy and Law, Farm Tourism, Food Science, Alternative Enterprises, Farm Accounts and Farm Machinery Mechanics.
BREXIT AND IRELAND’S AGRICULTURAL & FISH EXPORTS Following June’s vote in favour of Brexit, the Young Fine Gael Committee for Agriculture & Rural Affairs outlines in this document proposals for discussions in order to protect and promote our areas of interest. The coming months will see the triggering of Article 50, and hence the formal negotiations for the United Kingdom’s exit from the European Union begun. The uncertainty of this process has already began to have effect on the UK’s economy, and will have implications – both direct and indirect – for the Irish economy. Due to the aforementioned vote in favour of Brexit, the Committee recommends the following proposals for adoption: I. Maintenance of free trade with the United Kingdom to be maintained at all costs. II. The introduction of schemes to protect Irish farmers against the considerable threat of a Sterling (£) devaluation. III. Ireland’s position and status within the Common Fisheries Policy to be reassessed and renegotiated.
I. Free Trade with the United Kingdom
In 2014 Ireland exported agricultural produce to Britain worth €4.5bn1. In 2013 the UK was the destination for 51% of the Ireland’s exports2. These statistics make clear the disastrous effect that the erection of trade barriers between the two countries could have. The Committee therefore urges that the safeguarding of free trade between Ireland and the United Kingdom be made a top priority of the Government. _____________________ 1. PwC Brexit: The Implications for Irish Business (July 2016), accessed at https://www.pwc.ie/media-centre/assets/publications/2016-pwc-ireland-brexitbooklet.pdf 2. Alan Matthews Implications of British Exit from the EU for the Irish Agri-food Sector April 2015, accessed at https://www.tcd.ie/Economics/TEP/2015/ TEP0215.pdf
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PRIORITIES FOR YOUNG FINE GAEL 2016 AGRICULTURE & RURAL AFFAIRS
I. Sterling Devaluation:
The possibility of currency devaluation in a post-Brexit Britain was a much mooted proposal before the referendum, and has emerged as an increasingly possible policy position since. Measures could include: (i) An increase in marketing and brand promotion by the Irish Government and subsidiaries in order to seek to maintain as best possible Irish exports despite their increased price for British consumers. (ii) Some form of grant system to those farmers affected by the inevitable reduction in exports to the UK.
I. Common Fisheries Policy: Due to:
(i) The willingness of the EU to alter the relationship between itself and a member state in the months prior to the UK’s referendum, and (i) The threat (including but not limited to the aforementioned circumstances) posed by Brexit to the Irish agri-food industry Young Fine Gael feels that a reassessment and renegotiation of Ireland’s status and/or position within the Common Fisheries Policy is due. As any contraction in the agri-food sector would hit hardest Ireland’s already struggling rural economy, Ireland’s fishing industry (and associated industries) have consequently grown greatly in importance. The Committee feels that a revival in Ireland’s fishing industry could help to revitalise Ireland’s coastal communities, most especially the Atlantic Seaboard. Although access to the European Single Market is important to Ireland’s fishing industry, Irish Fish Producers CEO Francis O’ Donnell claims that 72% of fish taken from Irish waters are taken by other EU member states.3 This exploitation of a natural resource by other states should be stopped, or at least reduced, and fishing industry treated with the importance it deserves. Ireland and the UK share forty fish stocks with the UK,4 and in O’ Donnell has also proposed the idea of a North Atlantic fishing union with Iceland, Norway and the United Kingdom. The Committee believes such a suggestion merits at the very least investigation. The proper use of Irish resources by Irish ships, either in the form of indigenous SMEs or by inward investment, could provide much needed vibrancy to some of the country’s most economically stagnant areas.
MENTAL HEALTH Rural Isolation
Young Fine Gael calls on The Minister to work with the Department of Health, to ensure implementation of Connecting for Life: Ireland’s National Strategy to Reduce Suicide 2015:2020. The feeling of isolation which often occurs among rural and agricultural communities is a risk factor for mental health problems; it is therefore crucial that the recommendations in this report are followed through. In addition, it is vitally important for rural GP services to be protected, and for comprehensive mental health services to be made available to the entire population. _____________________ 3. http://www.irishtimes.com/news/ireland/irish-news/sympathy-in-fishing-communities-for-pro-brexit-campaign-1.2674881 4. http://www.irishtimes.com/news/ireland/irish-news/fishing-industry-warns-against-eu-negotiations-sell-out-1.2700813
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AGRICULTURE & RURAL AFFAIRS PRIORITIES FOR YOUNG FINE GAEL 2016
Mental Health Education
To promote awareness of mental health and to help reduce the stigma and reluctance among young people in accessing mental health services, Young Fine Gael calls on The Government to introduce a module of learning as part of the Leaving Certificate Agricultural Science Curriculum, to deal with mental health issues in the rural and agricultural context. Agricultural Science is offered in many rural secondary schools, and many students who take the subject will go on to be involved in farming, perhaps by working the family farm. The introduction of discussion surrounding farming, rural life and mental health in the secondary school environment could encourage young people to be more aware of their own mental health, the mental health of their friends and peers, and risk factors for poor mental health.
Better Communication and information about services
To increase awareness of mental health issues and to promote positive mental health, Young Fine Gael calls on The Minister to issue an information leaflet to every farming household in the country on annual basis. Such a leaflet should include details of signs of mental health issues, details of local mental health services and tips on how to preserve and promote positive mental health. A leaflet could possibly be distributed along with existing correspondence, for example Basic Payment Scheme documentation.
JOBS AND INNOVATION Crippling fuel costs
Young Fine Gael calls on the Minister to reduce fuel taxes. Recent statistics show that ninety percent of the price paid for diesel at the pumps is in tax. This is through direct and in-direct taxes. High fuel costs are a heavy burden on job creation in rural Ireland, with many people having to travel long distances to get to work. Donegal is considered as one of the most disadvantaged counties when it comes to this scenario with fuel costs often outweighing the high insurance, road tax and car maintenance costs on an annual basis.
Education incentives
Young Fine Gael propose the following steps be taken to produce a more educated workforce in Rural Ireland which would subsequently decrease unemployment: 1. Incentives be offered to young people between the ages of 19-26 to return to higher education and/or return to school as a mature student to complete their leaving certificate. I believe these incentives should come in the form of subsidies e.g. school appliances, college fees be paid by the government in full by those who cannot afford it. 2. An increase in support from the department of Public expenditure and the department of education for university access programmes. University access programmes have proven themselves to be an invaluable opportunity for those to attend university who otherwise may not have been able to afford to do so and/ or did not complete their leaving Certificate. By funding these programmes people from rural ireland will be able to attend university, this will result in a more educated rural workforce which would intern attract Multi National Corporations to rural Ireland.
Agricultural Diesel Subsidy:
Young Fine Gael opposes any proposal on abolishing the agricultural diesel subsidy. It is accepted globally that agricultural diesel should be subsidized due to the large volumes of diesel that is consumed by machinery; which is essential to run a farm. Any such proposal will directly impact on farmers and will result in a weakening of an already volatile sector.
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PRIORITIES FOR YOUNG FINE GAEL 2016 AGRICULTURE & RURAL AFFAIRS
Tax relief on leasing farmland to family members:
Young Fine Gael proposes that the Minister considers extending the tax relief of leasing farmland by young, trained farmers to family members. Currently, tax relief is only available to non-related parties. Such relief should be granted under a fixed term lease.
Young Farmer Fund:
Young Fine Gael supports proposals from Macra na Feirme that the European Investment Bank fund for young farmers would be used to create a fund that would provide young farmers with access to credit and interest subsidised loans to facilitate the establishment of new farm business and collaborative arrangements.
RURAL BROADBAND Young Fine Gael proposes that as part of Ireland’s rollout of superfast broadband, the Government ensures that rural Ireland cannot be left behind as it has been in many areas so far. The Government should seek to include in any new development of broadband that a provider also commits to providing access in rural areas in conjunction with urban improvements. Many companies will improve an urban area several times rather than invest in rural infrastructure. We believe that this neglect of rural Ireland will only serve to continue current issues such as job creation and business running in rural Ireland. The argument of “cost” should no longer be accepted as an excuse to not service more remote areas. Investing in a better rural broadband scheme will make expansion easier for many small firms and also help farmers utilize the latest technologies without depending on satellite broadband providers. If the current practice of allowing mainstream providers ignore rural Ireland it means that a huge proportion of our population is not being given the same opportunities as the rest as some 1.6 million people are classed as living rurally. Summation: We believe that it is time the Government stood firm on the bypassing of rural Ireland and makes sure that in conjunction with any further improvement to the national broadband scheme, mainstream providers are forced to work to improve services in rural Ireland also.
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