Chance to take sting out of volatility at EU level
Volatility, be it weather, input costs, or output prices, have been a feature of the dairy landscape since 2007 and will remain a huge challenge into the future.
While farmers have seen improved returns over the past six months, the bills from the previous year are still being paid on many farms and I feel strong prices will be needed if the sector is to achieve its objectives of expansion and efficiency. On milk price outlook, it is clear that the first half of 2014 should be positive for milk price but, given the vagaries of dairy markets, predicting beyond that is dependent on the global supply situation. I earnestly hope that markets will remain strong for all of 2014.
With quota abolition looming in 2015, I feel strong policy decisions will be needed to address volatility at national and EU level to ensure the long-term viability of farming in this country. Unless we see appropriate policies to deal with volatility, our milk and beef suppliers will remain extremely exposed.
I agree that we, as dairy farmers, can expand output at farm level. Whether that can be done profitably is the issue, and the lack of any meaningful attempt at EU level to deal with extreme price volatility places a huge question mark, and I certainly welcome the announcement by Agriculture Commissioner Dacian Ciolos that he intends to establish a market monitoring centre within DG Agriculture to monitor the situation for dairy products. However, I believe it must focus on meaningful solutions rather than another layer of bureaucracy. The recent vegetable price war must be a lesson for us all and EU policy must ban such unfair practices. The proposed statutory code of conduct for the grocery goods sector, to which ICMSA has contributed, is a step in the right direction.
CAP post- 2013 was agreed this year, but major rulings remain to be finalised in the coming weeks. I cannot stress how important these decisions are for farmers because there are very real fears that we will face unprecedented cuts in our payments. The list of possible cuts is substantial and I urge Agriculture Minister Simon Coveney to ensure these cuts for active farmers are kept to a minimum. Active farmers must be protected and I am fear we could see a massive transfer of funding away from active farmers to people who simply own land. January will be a real indication of the commitment of this Government to farm families.
In relation to Pillar II, 50% co-funding is an absolute must. Farm schemes have been ravaged in recent years with serious cuts in the Disadvantaged Areas Scheme, the REPS Scheme, and the abolition of schemes such as the Early Retirement Scheme. REPS has brought many benefits to rural areas and those benefits must not be lost going forward. In excess of 13,000 farmers will be out of REPS 4 in 2013 alone and will need a scheme as soon as possible for farmers who wish to partake in agri-environment programmes.
The review of the Farmer’s Charter in 2014 will be hugely significant for farmers, as we are being choked with paperwork and inspections and, put simply, the charter review will have to relieve the pressure on farmers.
Finally, I would like to wish all farmers a safe and prosperous New Year.
* John Comer is president of the ICMSA
