Danny Healy-Rae demands levy relief as fertiliser costs surge

Minister, I raised this back in November, and it is now the end of February and it is the time when farmers need to spread their fertiliser. Just take one product alone, New E was three top day tun, this time last year, now it is nine top day tun. That is the gospel truth, Minister. And if farmers can't, you know, work without getting some bit of a profit, and at this rate they won't survive, but they'll have to pass on their cost to the consumer, and you're wondering about inflation. And what's causing it? This is one of the things. So, Minister, I'm asking you to do two things. I'm asking you to forego the levy that he is charging, and the tariff that he is imposing on outside countries, outside of the EU, that's been charged to them, to the amount of 50 euros a ton. There's one other issue. I'm asking you to subsidise the fertiliser at this point in time. I seriously am. Because it will mean a difference to the housewife, it will mean a difference to the farmers, it will mean a difference to everyone if you do that. Thank you, Deputy Minister Hackett. Thank you for being here. Thank you. Thank you, Cian Corlia. And I'm here on behalf of Minister McConnell, who's away at the moment. And I would like to thank the deputies for raising this important matter. The very significant rise in fertiliser prices in the last year, and particularly in recent months, is particularly concerning, and my department is closely monitoring the situation. While there are a number of factors that play in the market, there is no sign of fertiliser prices easing in the short to medium term. There are no fertilisers manufactured in Ireland. Rather, fertiliser companies blend a number of imported fertiliser products into different compositions suitable for agricultural use in Ireland. Indigenous fertiliser companies are dependent on global supply and demand, and subject to euro exchange rates against the US dollar and other currencies on the price they pay for fertiliser. The well-publicised rise in gas prices, which is a key input in nitrogen fertiliser production, has contributed significantly to the upward trend in fertiliser prices. Furthermore, an exasperating factor is an increased demand for fertiliser from large grain-producing countries, which is being fuelled by strong global grain markets. This increased global demand has impacted on supplies and added to upward pressure on prices. The imposition of anti-dumping tariffs from certain third countries is, of course, an additional, albeit secondary, factor when imported into the EU from these producing countries. Therefore, it is clear that there have been a confluence of issues over the past 12 months or so, all having an upward effect on global fertiliser prices. Energy prices remain well above January 2021 levels, and transport costs have also added to the price increases. In October 2021, Minister McConnell-Logue requested Chagas to lay out a credible roadmap to assist farmers in the short term, as well as offering a long-term solution in the move to reduce dependency on chemical fertiliser. This chemical fertiliser and the soil's nutrients and fertiliser campaign was launched on January 26. Chagas has put together a comprehensive information pack for farmers and their advisers through a compendium of 20 fact sheets to optimise the use of plant nutrients and to help farmers address the challenge of maintaining their farm outputs in the face of rising fertiliser costs and reduced availability. Chagas are working with farmers through the soils, nutrients and fertiliser campaign to help them adapt to the current fertiliser market and to support them to make informed decisions on what is best for their farms. This is a strategy that can ease the price pressure on farmers, and it is a strategy that will be good for the environment and good for farmers' pockets. At the November Agriculture and Fisheries Council, Minister McConnell-Logue raised the increased challenge faced by farmers due to the rising costs of inputs. The EU Commission was called upon to consider all options to ease the pressure on farmers at this time, including the question of whether the imposition of anti-dumping duties on fertiliser imports continues to be appropriate, and for this matter to be examined as a priority. Following the November meeting, Minister McConnell-Logue wrote to the EU Commissioner Wojciechowski requesting that the Commission's assessment of the ongoing appropriateness of anti-dumping duties on fertiliser is completed as a matter of priority. The EU Commission responded on 26 January to say that they are still collecting information to establish the relevant facts. In addition, a new €1 million initiative by my department will support the planting of multi-species swords in order to reduce dependency on fertiliser. This scheme will support farmers to use multi-species grass when reseeding. It will mean a mixture of complementary species will be sown, including clover, which will enable farmers to significantly reduce their use of nitrogen. A pilot soil sampling programme has also been introduced by my department, which will give farmers comprehensive details of the soil health and soil condition of their farm. This should again provide them with the critical information to make farm management decisions and nutrient inputs to the most efficient levels. With fertiliser prices constituting such a high portion of a farmer's expenditure, we are aware that the impact of continued high fertiliser prices will have a negative effect on farmers' businesses. Ireland, unfortunately, will remain a fertiliser price-taker in this regard. Please, again, I would like to reiterate that the cost of fertilisers has nothing to do with green policies. It is a global price increase because of gas prices. Globally, gas prices have increased, and if you have been following any of the current affairs at the moment, you will be aware of that. Fertiliser is essentially made from gas. So, if gas price goes up, fertiliser price goes up. I cannot really be much clearer than that. We have engaged, as I said, with the EU Commissioner on Agriculture, and we have requested that they assess one of the aspects in terms of the appropriateness of the anti-dumping duties. Now, we are making inroads into that. We are hoping that the EU Commission will respond with some positive news on that. Certainly, my colleague Minister, Minister McConnell, has been seeking that as a priority. The measures I did outline are practical measures. We are ultimately on a roadmap here to actually allow – no, you are wrong – it is to enable farmers to become sustainable. So, their farms are sustainable for future generations. The current model does not work. Now, we cannot leave farmers at a loose end with no fertiliser. We need to support farmers to adapt to farming practices that require – and you should know, Deputy. I understand you are an organic farmer. You should be able to – but you should be sharing your knowledge. You should be sharing your knowledge as an organic farmer to your colleagues. You should share that knowledge with your colleagues. My department is working hard. We have commitments within our Climate Action Plan to reduce the amount of fertiliser we do. My department is working really hard to put in place measures that will support farmers. Please! If you actually bothered to listen to my response at the start, you would have heard a number of measures outlined. I will gladly share with you my response. You can follow up on some of those comments there. Thank you. Thank you. No. No. No. No. No. Please. Please. Please. Not serving anyone's interest with us. Carry on. Thank you. No. Thank you. Thank you. Please. Please. I'll just carry on. Thank you. Thank you. Thank you. Thank you.