ICSA national president, Malcolm Thompson

The Irish Cattle and Sheep Farmer’s Association (ICSA) president Malcolm Thompson has welcomed the announcement by the Minister for Agriculture Brendan Smith regarding a reduction in the testing level for Brucellosis.

“ICSA has continuously lobbied the Minister for these much needed changes and it is heartening to see some small relief for farmers. We are continuing to press for an overdue streamlining of the Tuberculosis testing regime. We believe this is very possible, while at the same time ensuring our good name and reputation in the export markets is protected and maintained.”

“I am receiving calls from concerned farmers on a daily basis looking for advice on whether to continue the measures they had in place under REPS 3. The money is simply not there in many cases and banks are unwilling to lend to farmers without assurances that they have been accepted into the scheme and are due to receive payment in September.”

“It is a disgraceful situation that so many farmers have been left with absolutely no idea whether or not they will be accepted into the scheme. Some clarification is urgently needed. Many farmers have paid their REPS fees to their planners for putting plans together and in many cases this money could have been put to better use. At a time when there are severe economic problems on farms this delay is adding more stress and worry to farmers who are trying to plan for the coming months and years,” he said.

ICSA rural development chairman Gabriel Gilmartin said today that the Rural Transport Scheme offers a vital service to many people living in remote parts of rural Ireland. Following recommendations by An Bord Snip Nua to discontinue funding of €11 million for the scheme, Mr Gilmartin said “many people, especially the older generation, rely heavily on the Rural Transport Scheme as sometimes their only means of getting out and about.”

“The value of this service far out weighs the costs associated with it. The Rural Transport Scheme allows people have access to hospital appointments, outpatient care and is a means for many to conduct their weekly business at the post office, bank and in local businesses. Perhaps the key element of the scheme is that it allows those living in isolation to have a social outlet and meet friends and neighbours on a weekly basis. The fabric of rural Ireland is changing and sometimes people would have little or no contact with the outside world only for this service.”

“The Bord Snip proposal has not properly analysed the costs and benefits of the various rural transport schemes across the country.  For example, many older customers tend to avail of day care and other health supports, which are preventative in nature.  Without a weekly rural transport facility, many of these people will have their health neglected leading to far more costly interventions at a later stage, which will end up adding to HSE costs,” he continued.

“Worse still, some older people will be so disadvantaged and undermined by the lack of a rural transport service that they will end up being institutionalised on a full-time basis.  This is completely contrary to the stated health strategy. Finally, the recommendation has not analysed the costs associated with doing away with employment (part and full time) of some 200 people who work in rural transport,” he concluded.  

ICSA is calling on the government to ensure that the Rural Transport Scheme is off the table when they sit down to decide on Colm McCarthy’s recommendations.

ICSA President Malcolm Thompson has said that he remains sceptical that cuts in EU red tape will materialise despite the best efforts of Minister Smith. “I would need to see the red tape burnt and witness the ashes scattered in the sea before I’d believe in any cuts in EU bureaucracy,” said Mr Thompson.

“The Minister will have his work cut out for him to try and persuade Europe. The European idea of cuts in bureaucracy differs widely from our ideas and all we have to do is to look at the results that emerged the last time that Europe agreed to simplification of the CAP. Europe’s idea was to “synchronise” the REPS payment dates, do away with paltry fines on compliance, and wipe out payment of tiny entitlements. In short it cost the farmer money, with absolutely no reduction in farmer workload,” continued Mr Thompson.

“Minister Smith needs to spell out clearly what is needed, and what we are entitled to expect. These should include abolition of the herd register, reduction in the duration and frequency of inspections, cutting out duplication of inspections and scrapping the proposed EID in sheep,” concluded Mr Thompson.

ICSA president Malcolm Thompson has said that Teagasc predictions that cattle and sheep enterprises will record a rise in income in 2009 are likely to be very wide of the mark. Speaking in response to the publication of a mid year update by the Teagasc Rural Economy Research Centre Mr Thompson said “this is certainly not the impression we are getting based on how this year has panned out to date.”

The report points to a decline in cattle ration prices and a reduction in fertiliser costs, however the reality is that large quantities of extra feed have been required this year, particularly in the west of Ireland. Due to incessant wet weather, especially in the months of April, May, and now again in August, farmers have had to buy in extra feed for cattle in an effort to compensate for poor growth and water logged ground.

Mr Thompson said “the exceptionally bad summer of 2008, followed by an extended winter-feed period has resulted in the need for extra supplementary feeding. Many cattle and sheep farmers bought additional silage, hay and other roughages in the late spring as their own supplies ran out.” 

“While fertiliser prices may have dropped, the economic return of fertiliser has been dubious on wetter ground. Grass has had less feeding value than normal and utilisation of grass has been very difficult.”

He continued “The data from the CSO and the EU Commission, which shows a decline in cattle prices of 8 – 12% is understating the reality.  The gap between 2008 and 2009 prices is widening as the year progresses and many farmers have been forced to sell sucklers and store cattle at give-away prices owing to credit pressures and weather induced feed shortages.” 

“Severe budget cuts to farmers will also impact in 2009, particular in the drystock sector. Cuts to disadvantaged area payments, REPS and the Suckler Cow Welfare Scheme to name just a few have not been factored in. I wish it was the case that the cattle and sheep sector would see an income rise this year, but unfortunately in reality the opposite is in fact true,” he concluded.

“Each year we are faced with a similar scenario and each year the deadlines have to be extended.  This calls into question the advisability of farming by dates imposed by bureaucrats,” said Mr Thompson. “Farmers are more conscious than most of the risks of pollution and we have always argued that spreading dates should be left up to farmers who are best qualified to make these decisions,” concluded Mr Thompson.

This week sees prices in the Midlands quoting as follows: U grade bullocks are making 305c/kg (£1.09/lb), R grades 300c/kg (£1.07/lb) and 286c/kg (£1.02/lb) for O grades. Heifers are trading at 308c/kg – 314c/kg (£1.10/lb – £1.12/lb). Good cows are making 252c/kg (£0.90/lb) and bulls are trading at 302c/kg – 308c/kg (£1.08/lb – £1.10/lb).

“A significant price rise at this point in time would give the farmers more confidence to compete aggressively in the ring against the main export agents,” Mr Scully concluded.

This week sees a rise in beef prices and in Donegal U grade bullocks are making 311c/kg (£1.11/lb) and R grades 302c/kg (£1.08/lb). Heifers are trading at 308c/kg – 316c/kg (£1.10/lb – £1.13/lb). Cows are making 252c/kg (£0.90/lb) and bulls are trading at 302c/kg – 311c/kg (£1.08/lb – £1.11/lb).

“Supplies are very tight and farmers are starting to dig in their heels with regards to selling and again, a further price rise is expected this week,” Mr Scully concluded.

“An average charge for silage contracting in Northern Ireland lies between £50 – £55 (€58 – €64) per acre while vets are charging approximately £35 (€40) to call out and treat a sick animal. These charges contrast with up to €100 per acre for silage in the south while vet charges are up to 50% more expensive.”

“With commodity prices at an all time low farmers need to bargain harder to reduce the cost of inputs if they are going to have any chance of survival. Farmers should look carefully at all their outgoings and see if savings can be made in any area. A euro saved is a euro earned,” he said.

“Farming is a high risk occupation and there are many dangers when dealing with machinery and livestock. It would seem that as more money is sucked out of the sector and when many farmers are struggling to survive on a day to  day basis, there is less free cash available to remedy the dangers that are  present. While it is a concern that compliance levels are low, it is more concerning that farmers are losing their lives and sustaining injuries throughout the course of their work.”

“Health and Safety practices on farm are necessary to ensure more lives are  not lost, but unfortunately, while farmers are very aware of the dangers,  many simply cannot afford to implement the recommended measure. Farmers are  all too aware of the dangers of farming and it cannot be said they are by  choice deliberately disregarding health and safety practices on farm and putting their lives at risk.”