€100m Brexit fund for beef farmers deemed inadequate by IFA

A €100m fund for beef farmers experiencing difficulties as a result of Brexit has been dismissed as inadequate by the Irish Farmers' Association (IFA).

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Details of the aid package, which will be jointly funded by the Irish Government and the EU,

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Known as the Beef Exceptional Aid Measure, the €100m is aimed at countering problems farmers are facing because of market volatility and uncertainty over Brexit.

However, substantially more funding and supports are needed for the beef sector, according to the IFA.

Mr Healy said beef farmers are now in dire straits with the threat of a no-deal Brexit causing mayhem in the EU Beef market, which is now in crisis.

On the €100m scheme itself he said that while he welcomed the fact that animals controlled by factories were excluded, he was concerned that the limits and conditions put in place by Minister Creed could lead to an under-spend of the fund.

IFA Livestock Chairman Angus Woods said: “The Minister has said that the payment rate to farmers might be cut if the scheme is overspent. We want a commitment from the Minister that if the money is under-spent, that he will re-look at some of the limits and restrictions, or increase the payment rate.

It would be a travesty if some this funding went unspent due to restrictions put in place by the Minister.

He said the minister could have paid the funding on all prime cattle (young bulls, steers and heifers) as set out in IFA’s six principles and ensured the fund was fully spent.

"We would be concerned that the way the scheme is now structured will result in the fund being underspent,” Mr Woods added.

According to Tim Cullinan, a candidate for the IFA presidency, the €100m package will not be enough to cover the damage caused by Brexit. "It is only the first instalment that will be needed to cover the losses that beef farmers are currently experiencing and the catastrophe that's looming for the remainder of the year,” he said.

Concerns about the scheme were also expressed by Edmond Phelan, president of the Irish Cattle & Sheep Farmers' Association.

While he welcomed clarification on the division of the €100m fund, he said the objective now must be to get the money to farmers promptly.

“The money must be distributed as quickly as possible,” said Mr Phelan.

“We are disappointed that EU funding rules say it can’t be paid until October 16, but we see this as the latest acceptable date for funds to arrive in farmers’ accounts. The beef trade is deteriorating every week and this fund is only a drop in the ocean compared to the losses being sustained by farmers.”

Mr Phelan also noted that certain terms and conditions attached to the scheme remain problematic, most notably, the requirement to reduce by 5% the production of bovine livestock manure nitrogen per herd.

“Progress with this will have to be monitored closely to ensure that compliance with this measure is achieved. ICSA is adamant that no farmer loses out as a result of this bureaucratic requirement,” he said.

“ICSA will be insisting that the Department outlines its plans to ensure that farmers are given assistance on an ongoing basis over the period July 2020-June 2021 to help them comply with this requirement.”