Beef farmers’ penalty ‘to hit economy’
Fine Gael agriculture and food spokesman Denis Naughten said the unjust penalties faced by beef farmers would directly impact on the price of weanlings and store cattle at the back end of the year.
“You just cannot take €95m out of the pockets of beef farmers without major repercussions on the rural economy,” he said.
Mr Naughten said 29,000 beef farmers will see their incomes reduced by up to 50% by the overshoot penalty. When costs such as bank interest rates and conacre are taken into account, many of these farmers will be left in the red with the banks.
“This penalty is completely unfair when you consider over 14,500 of the affected farmers have not increased the number of animals submitted for the premium,” he said.
IFA president John Dillon told the Committee that Minister Mary Coughlan and the Government must secure a solution to the cutbacks which would result in producers facing an average penalty of €3,925.
IFA Livestock chairman John Bryan said individual farmers are facing cuts ranging from €53 to €78 per animal, in many cases more than the net margin per animal. Some producers are facing real financial hardship as a result of these cuts.
As well as lobbying all TDs and Senators, he said the IFA will also discuss the issue with the EU Farm Commissioner Marian Fischer Boel when she visits Ireland next week.
