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LIQUID MILK SUSTAINABILITY IN QUESTION AS IFA PREDICTIONS COME TO PASS

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Speaking from this week’s meeting of the National Milk Agency, at which he presented Chairman Denis Murphy and CEO Muiris O Ceidigh with the IFA Liquid Milk Producers’ Petition, IFA National Liquid Milk Committee Chairman Teddy Cashman said many of the predictions made last Autumn by the Committee had by now come to pass.

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Speaking following the signing into law of new retail regulations this week, Teddy Cashman said it is crucial that neither retailers, dairies, regulators, government nor consumers would take locally produced, fresh liquid milk for granted post-quota, and would take on board the need for fit-for-purpose payment structures and levels that allow farmers to cover their costs and pay themselves a reasonable wage.

“In the prime autumn calving season, from September to December 2015, ICBF reported almost 14,000 fewer dairy calf births – a 15% fall in comparison with the same period last year, in the context of an 8.5% increase in calf births for the whole year.  This clearly indicates that farmers are doing what we predicted last year: matching their calving pattern more closely to their liquid milk contracts to minimise losses, or even reducing or ceasing their commitment to liquid milk altogether,” Mr Cashman said.

“We had also correctly predicted that low base milk prices were boosted during the autumn by relatively strong constituents, but that, even with an unchanged price, constituents would all but collapse during December and January, cutting at least 6c for every litre produced, at the most expensive time of year to produce milk,” he added.

“I believe that we are seeing for the first time farmers under increased pressure to either reduce or cease their commitment to liquid milk, or to adapt more closely their calving pattern to their contracts. While the latter is an economically wise option for farmers who wish to remain in liquid milk, reduced calving in autumn creates a situation where dairies will have much tighter availability of fresh, high quality milk for consumers to drink during the winter,” he said.

“It is vital that our regulators – the NMA, the Competition and Consumer Protection Commission –  our electioneering politicians, Government and retailers would bear in mind that liquid milk needs adequate levels of stable remuneration with strong winter payments, as well as regulation within the retail sector to protect primary producers, in the best interest of consumers,” Teddy Cashman concluded.

Farming

IFA Raises Payment Concerns with Dept at Charter of Rights Meeting

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Speaking at a Charter of Rights meeting with the Department of Agriculture this week, the IFA Deputy President Brian Rushe said it’s absolutely essential that the maximum number of applicants in tranche 19 of TAMS are approved as soon as possible to provide certainty to farmers who are planning to carry out work.

IFA Rural Development Chairman Michael Biggins welcomed confirmation that payment of the ANC balancing payment will commence next week.

He stressed the importance of paying the remaining farmers as soon as they meet their stocking density requirements, which the Dept confirmed happens on a weekly basis.  Farmers will be paid as soon as they meet the required stocking density, which in some cases will run to the end of the year.

Michael Biggins also called on the Dept to pay the ANC to farmers who omitted in error to tick the ANC box on their BPS application this year.  “A system where a farmer has to ‘opt out’ rather the ‘opt in’ would ensure there are fewer errors when submitting applications,” he said.

IFA Deputy President Brian Rushe welcomed the payment of the BPS balancing payment which commenced this week.  “The Dept also confirmed the issue around transfer of entitlement, which held up payments of around 1,000 farmers, has been resolved for most at this stage and the remaining ones will be resolved in the next week,” he said.

IFA National Livestock Chairman Brendan Golden has welcomed DAFM facilitation of farmers who made ‘Draft applications’ to BEEP-S scheme and who had operated under the impression they were participating in the scheme by carrying out measures on their farms. IFA had raised this issue directly with the Department of Agriculture and the acceptance of these farmers into the scheme is the right decision.

Regarding the Beef Finishers Payment, Brendan Golden again called for cattle exported for slaughter in the reference period to be paid on from the surplus in the Beef Finishers Payment fund.

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Farming

IFA Launches Guide to Personal Insolvency Arrangements

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IFA National Farm Business Chair Rose Mary McDonagh and Martin Stapleton, Chairman of the IFA Debt Support Service, have launched a Guide to Personal Insolvency Arrangements (PIA).

IFA Debt Support Service was established following the last recession to provide specific support to farmers in arrears.

The confidential service is comprised of an experienced team of IFA volunteers working with professional support to provide assistance to IFA members in financial difficulty.

Martin Stapleton said IFA has worked with over 500 farmers over the last few years. While the numbers in difficulty are reducing, recent weeks have seen an increase in activity from vulture funds since the COVID-19 Payment Breaks came to an end.

“This guide is available on IFA’s website and will serve as a useful resource for farmers in arrears seeking to protect their family home and farm land,” he said.

A Personal Insolvency Arrangement (PIA) is a debt resolution mechanism outlined in the Personal Insolvency Act, which acts as an insolvency solution for people with unsecured and secured debt.

Rose Mary McDonagh added that a PIA can provide a debtor with protection from their creditors and on completion, a debtor will return to solvency.

At present, the Oireachtas is considering one of two Bills which will reform the area of personal insolvency and amend the current eligibility requirements for a PIA. Rose Mary McDonagh said the definition of relevant debt should be expanded to include debt prior to 2015, and debt secured in or over a debtor’s income reliant/core asset.

The IFA Debt Support Service can be contacted, in confidence, at 1890 924 853.

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EU Must Complete an Impact Assessment of Green Strategies

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Speaking after a meeting of European Farm Leaders (COPA) with EU Executive Vice President Frans Timmermans yesterday, IFA President Tim Cullinan said that the EU must complete a full impact assessment of the EU Farm to Fork and Biodiversity strategies.

“I told the Commissioner a full impact assessment is needed to determine how much implementing these strategies will cost,” he said.

“Frans Timmermans has threatened to withdraw the Commission’s own CAP proposal if it doesn’t take more account of the Farm to Fork and Biodiversity strategies. Yet he has no idea how much these strategies will cost or who will pay for them,” he said.

“People are quoting all these targets without any consideration for their impact on output or on production costs of farmers. Farmers cannot be left to carry the can on this,” he said.

“We also need Teagasc to do an assessment of the impact in Ireland. We are currently deep in discussions on the Agrifood 2030 strategy, but again we have a data vacuum,” he said.

“It’s incredible that the Economic Research Service of the US Department of Agriculture has examined the impact of ‘Farm to Fork’ Strategy on farm incomes, output and trade and neither the EU nor Ireland has,” he said.

“The US report predicts that as a result of the strategy, farm incomes would be reduced by 16%. This is as a consequence of the expected loss of production by 12% across the EU which would not be offset by the 17% increase in market prices.”

“If these measures were implemented, the report predicts a loss in output at an EU level which would cause exports to fall by 20% and imports would increase by 2%. The knock-on effect of these changes in trade is predicted to increase the cost of food by €132 per person in the EU.”

“If these figures are correct, they would be devastating for European farmers. Yet the EU Commission doesn’t know, or won’t tell us, what their assessment of the impact will be,” he said.

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