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Minister Coveney – It’s time to deliver Dear Member, With market prices under pressure in livestock, sheep, grain, pigs and potatoes, and processors and retailers abusing their power in the food chain to take advantage, farm families are right to be angry. Minister for Agriculture Simon Coveney has to get serious with the meat factories and retailers and deliver results on the price and spec cuts imposed on livestock farmers this year. For livestock farmers to have confidence, beef finishers must be treated with respect and the factories must honour their agreement with farmers on the price grid and the Quality Payment System. This means removing the unfair specification cuts on dual pricing, weights, age and breeds that were never part of the QPS. Prices delivered from the marketplace must provide a viable income and the progress made in increasing live exports this year must be built on by solving the nomad issue on the Northern Ireland trade, which is crucial for store and weanling prices. Factory contracts at viable price levels are essential, especially for winter finishers and bull beef producers. To address cash-flow difficulties on farms, the Minister must seek EU approval to pay 100% of the Single Farm Payment on October 16th and ensure the prompt payment of all other direct payments due this autumn. In the run-up to Budget 2015 on 14th October, IFA has mounted an intensive lobbying campaign to secure over €500m in funding for farm schemes under the new Rural Development Programme. Minister Coveney must get the new farm schemes opened for application this year and secure the necessary funding to allow 30,000 farmers to join the new GLAS scheme and receive their first full payment in 2015, as well as TAMs for on-farm investment across all sectors. Further progress is required to ensure effective CAP/RDP implementation in the areas of young farmers, national reserve and greening. On commonages, substantial progress has been made and IFA will insist that the Commonage Implementation Committee delivers on the Minister’s commitment to active farmers and I would encourage all farmers wishing to participate in GLAS to attend the Department’s information meetings. IFA has made a strong case to the Government to address the challenges facing the sector in the Agri Taxation Review. We have devised measures to promote on-farm investment, mitigate income volatility and improve the productive capacity of agriculture. Earlier farm transfers would be encouraged through our proposal for a phased transfer partnership that would give tax relief to the farmholder during a defined period for farm transfer. AUTUMN 2014 Ploughing News Russia’s ban on EU food imports cannot be allowed to damage farmers’ incomes. The EU must take decisive action to support Dairy and other sectors impacted using non-CAP funds. Co-ops must help to maintain producer confidence as we approach the end of milk quotas by maintaining strong prices and the Minister must do more to open new markets in Asia, and get the US opened for beef. I welcome the appointment of Phil Hogan as new Agriculture Commissioner and I intend to work closely with him to address key EU issues including the future direction of the CAP, excessive on-farm bureaucracy and inspections, damaging trade deals and unwarranted environmental restrictions. Be assured our Association will leave no stone unturned in working to find solutions on all issues facing farm families at this time. I want to take this opportunity to make a strong appeal to farm families to prioritise farm safety in their daily work. Thank you for your valuable support. Eddie Downey Farmers vent anger and frustration at beef price and spec cuts: Since January, IFA President Eddie Downey and National Livestock Chairman Henry Burns have led a determined campaign against unjustified cuts, targetting factories and retailers and putting the onus on Minister Coveney to take action and prioritise cattle prices. Unity – Strength – Delivery

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Page 1: IFA Ploughing Newsletter - Autumn 2014

Minister Coveney – It’s time to deliver

Dear Member,

With market prices under pressure inlivestock, sheep, grain, pigs and potatoes,and processors and retailers abusing theirpower in the food chain to takeadvantage, farm families are right to beangry.

Minister for Agriculture Simon Coveneyhas to get serious with the meat factoriesand retailers and deliver results on theprice and spec cuts imposed on livestockfarmers this year. For livestock farmers tohave confidence, beef finishers must betreated with respect and the factoriesmust honour their agreement with farmerson the price grid and the Quality PaymentSystem. This means removing the unfairspecification cuts on dual pricing,weights, age and breeds that were neverpart of the QPS.

Prices delivered from the marketplacemust provide a viable income and theprogress made in increasing live exportsthis year must be built on by solving thenomad issue on the Northern Irelandtrade, which is crucial for store andweanling prices. Factory contracts atviable price levels are essential, especiallyfor winter finishers and bull beefproducers.

To address cash-flow difficulties on farms,the Minister must seek EU approval to pay100% of the Single Farm Payment onOctober 16th and ensure the promptpayment of all other direct payments duethis autumn.

In the run-up to Budget 2015 on 14thOctober, IFA has mounted an intensivelobbying campaign to secure over €500min funding for farm schemes under thenew Rural Development Programme.Minister Coveney must get the new farmschemes opened for application this yearand secure the necessary funding to allow

30,000 farmers to join the new GLASscheme and receive their first fullpayment in 2015, as well as TAMs foron-farm investment across all sectors.

Further progress is required to ensureeffective CAP/RDP implementation in theareas of young farmers, national reserveand greening. On commonages,substantial progress has been made andIFA will insist that the CommonageImplementation Committee delivers onthe Minister’s commitment to activefarmers and I would encourage allfarmers wishing to participate in GLAS toattend the Department’s informationmeetings.

IFA has made a strong case to theGovernment to address the challengesfacing the sector in the Agri TaxationReview. We have devised measures topromote on-farm investment, mitigateincome volatility and improve theproductive capacity of agriculture. Earlierfarm transfers would be encouragedthrough our proposal for a phasedtransfer partnership that would give taxrelief to the farmholder during a definedperiod for farm transfer.

AUTUMN 2014Ploughing News

Russia’s ban on EU food imports cannot beallowed to damage farmers’ incomes. The EUmust take decisive action to support Dairy andother sectors impacted using non-CAP funds.Co-ops must help to maintain producerconfidence as we approach the end of milkquotas by maintaining strong prices and theMinister must do more to open new markets inAsia, and get the US opened for beef.

I welcome the appointment of Phil Hogan asnew Agriculture Commissioner and I intend towork closely with him to address key EUissues including the future direction of the CAP,excessive on-farm bureaucracy andinspections, damaging trade deals andunwarranted environmental restrictions.

Be assured our Association will leave no stoneunturned in working to find solutions on allissues facing farm families at this time.

I want to take this opportunity to make astrong appeal to farm families to prioritisefarm safety in their daily work.

Thank you for your valuable support.

Eddie Downey

Farmers vent anger and frustration at beef price and spec cuts: Since January,IFA President Eddie Downey and National Livestock Chairman Henry Burns have led adetermined campaign against unjustified cuts, targetting factories and retailers andputting the onus on Minister Coveney to take action and prioritise cattle prices.

Unity – Strength – Delivery

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Minister Simon Coveney and hisdepartment must ensure that realprogress is made on the key issues putforward by the IFA in the negotiationsfor a new Charter of Rights on directpayments.

Deputy President, Tim O Leary, who leadsthe IFA project team on direct payments,said the key proposals from the IFAinclude:

- Reasonable notice for all inspections

- More efficient and effective system for dealing with queries- Reduced inspections and no duplication - Proper tolerances to avoid unnecessary penalties- A yellow card for minor offences - Delivery of payments on time and

within deadlines

The Deputy President said IFA is insistingon a new improved Charter which is morefarmer-friendly, removes the fear andstress around inspections, and deliverspayments on time.

2014 Payment Delivery

In response to pressure on farms, IFA isdemanding Minister Coveney seeks a100% advance of the Single Farm Paymentfrom the EU Commission on October 16th.

In addition, ANC’s (Disadvantaged Areas)payments are due from the third week ofSeptember. He said getting thesepayments out on time is of criticalimportance this year. He said “All REPSand AEOS payments as well as BTAP, STAP,Sheep Grassland, BDP and Beef Genomicspayments, must be made well before theend of the year.”

IFA puts retailers under pressure over sheep and beef prices. From left: JerBergin, National Treasurer; Henry Burns, National Livestock Chairman; Maura Canning,Farm Family Chairperson; John Lynskey, National Sheep Chairman; James Murphy,South Leinster Chairman; Tim O’Leary, Deputy President; Tom Turley, ConnachtChairman; Pat Murphy, Galway Chairman; and, Padraic Joyce, Mayo Chairman at aretailer protest in Galway.

Sheep sector action

IFA demands progress on Charter ofRights

Maximising lamb price returnsDespite higher lamb supplies every week this season, good demand and hardselling by farmers has kept mid-season prices between €90 and €100 per headduring the peak summer months, according to IFA National Sheep Chairman JohnLynskey.

John Lynskey said when prices came under pressure in July, IFA met the factoriesto highlight the need for stability and prices to exceed production costs to providea reasonable return to farmers. In addition, IFA took direct action with a number ofsheep farmer protests at key retail outlets in Tesco, SuperValu, Dunnes, Aldi andLidl.

John Lynskey said IFA is very focused on the weekly battle on quotes and prices,making sure farmers are getting the best information to maximise returns whenselling. “The IFA Lamb Price Update through the farming media and our app andtext service on ifarm.ie and www.ifa.ie offer vital information for all sheepfarmers.”

Mart sales have also been positive, with interest and demand in store and light hilllambs strong, driven by excellent grass growth and forecasts of tighter finishedsupplies next winter/spring. John Lynskey said the breeding sales are also betterthis year. Numbers live exported were down, which was disappointing. Hopefullythere will be a pick up for the Muslim festival Id-ul-Adha on October 4th.

Sheep sector supportsWith sheep farmers’ incomes under pressure and the Sheep Grassland paymentincorporated into the SFP, John Lynskey has called on Minister Simon Coveney toconsider further support for the sheep sector especially to improve hill lambmarketability.

He said important elements for sheep will include the National Reserve and ruraldevelopment measures including ANCs (Disadvantaged Area) payments, anincrease in the STAP payment, GLAS payments and TAMs. In addition, Lynskey hassaid the issues on the hills and commonages must be resolved so as GLASpayments can get going quickly.

SFP Beginning October 16 €1.2bn

ANCs (DAs) Week beginning 22 September €195m

REPS / AEOS November/ December €158mSheep GrasslandPayment December €15mSTAP / BTAP December €8mTAMs By December 31 €10mSuckler CowPayment By December €40m

Payments due in 2014

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IFA Campaign on Beef

Demanding action on beef: At a recent meeting, Minister Simon Coveney assured IFAhe will get directly involved in discussions between factories and farmers to resolve thebeef price problems. The IFA delegation (l-r) Kevin Kinsella, Director of Livestock; PatSmith, General Secretary; Eddie Downey, President; and, Livestock Chairman, HenryBurns.

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Eddie Downey addresses a large protest outside Kepak, Clonee last Februaryas part of IFA’s long-running campaign against price and specification cuts.

restored. This year live exports are up 18%and the prospects for Italy and Spain thisautumn look promising.

Northern TradeIFA has worked tirelessly leading thecampaign to remove the artificialroadblocks impeding the important livetrade to Northern Ireland. IFA, in association

with Northern processors, presentedbranding solutions which have beenapproved by Minister O’Neill in the North.

Henry Burns said we need the full supportof Minister Coveney and Minister O’Neill tofinalise a solution to this problem. IFA alsomet with Tesco who agreed to positivelywork towards finding a solution.

Livestock farmers’ anger and frustrationover factory price and specification cutshas been in sharp focus during a strongIFA campaign demanding thestabilisation and restoration of beefprices. The IFA campaign involved farmerprotests at the factories and MinisterCoveney’s office earlier this year and morerecent nationwide protest action directed atretailers and food service outlets.

Minister must deliverNational Livestock Chairman Henry Burnssaid IFA is very determined that theMinister for Agriculture Simon Coveney hasto deliver on his commitment to farmersand put the beef crisis top of his agenda:“Minister Coveney has stood back for fartoo long and allowed the factories take fulladvantage of increased supplies to imposepenal price and specification cuts which inturn have severely hit farm incomes.” Henry Burns said IFA has forced MinisterCoveney onto the pitch and he must actdecisively to restore viable beef prices andconfidence: “The Minister has to actdecisively and insist that the factorieshonour the agreement they entered intowith farmers on the price grid under theQPS. He must insist that the dual pricing,weight limits, breed and additional agelimit cuts are removed.”

Farmers need €4.00/kg“With beef prices in our main markets inthe UK and across Europe recovering, it'stime the processors started to secure andreturn prices to farmers to restore viabilityand confidence to the sector. The Livestockleader said Teagasc figures show farmersneed at least €4.00/kg to make a margin.”

Supplies to tightenFinished cattle supplies will tighten laterthis year and the kill is forecast to fall by150,000 head in 2015 due to lowerregistrations and increased live exports in2013. Together with tighter supplies in theUK, this will change the supply/demandbalance going forward.

Greater availability of contracts for farmersis essential, especially for winter finishersand bull beef producers. In addition, therehas to be clear transparency on marketreturns and more competition in the tradewith more live exports.

Live ExportsLive exports are crucial to pricecompetition and market balance. Followinga significant IFA breakthrough with Stena,direct ferry access to the UK has been

IFA Demands action from Minister Coveney on Beef

• Minister Coveney must insist the factories honour their agreement with farmers andrestore the Quality Payment System.

• Factories must remove the specification cuts around dual pricing, weight limits,breeds and additional cuts for age that were never part of the QPS.

• Minister Coveney must deliver viable beef prices by insisting on full market returnsand competition, real price transparency and more live exports.

• The Minister must ensure additional contracts are available at viable prices. • The Minister must remove the roadblock impeding the live trade to Northern Ireland

and fully support the IFA campaign and work to secure a branding solution.• Minister Coveney must defend the suckler herd. As well as the €80 Genomic

payment secured by IFA, suckler farmers need higher payments under the BTAP,GLAS and TAMs schemes.

The IFA has put forward a Plan for Profit focussed on delivery forlivestock farmers – see www.ifa.ie

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The budget must deliver for farmfamilies in three areas: funding forfarm schemes under the new RDP, areduction in the tax burden onworking families and new taxmeasures to support farmrestructuring and income volatility.

The core objective for the Government inOctober’s budget must be to supportsectors that are delivering employmentand export growth. While farming isfacing significant challenges at themoment, there are real opportunities forfarming to continue its contribution toeconomic recovery, if these challengesare addressed.

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Next budget must deliver on RDP funding and taxation priorities: Launching theIFA’s pre-Budget submission are (l-r) IFA General Secretary, Pat Smith; IFA President,Eddie Downey; IFA Farm Business Chairman, Tom Doyle; and IFA Chief Economist,Rowena Dwyer. Eddie Downey will press the farmers case with the Finance Minister,Michael Noonan and Minister for Public Expenditure and Reform, Brendan Howlin, bothof whom supported 46% national funding for the RDP.

Expenditure priorities for farming in Budget 2015

• Commencement of contracts for thenew agri-environment GLAS schemein early 2015, with 30,000 farmersallowed into the scheme in its firstyear and full payments made in2015;

• Funding of €195m for ANCs (DAs);• Allocation of €30m for the TAMs

scheme to fund on-farm investmentprogrammes across all sectors;

• Funding of €52m for the BeefData & Genomic Scheme tosupport the vulnerable sucklersector;

• Increased capital fundingallocations for the horticulture,forestry and aquaculture sectorsto achieve output targets andemployment growth.

Minister must deliver for farmers inBudget 2015

RDP Funding

Farmers who made a one year off-road declaration for theirtractors or other vehicles in September 2013 must renew thedeclaration this month if the vehicle is still not being used in apublic place, in order to avoid having to pay tax on the vehicle.This can be done online at www.motortax.ie using the PINnumber given on the renewal notice, as well as in motor taxoffices.

A major IFA lobbying campaign is underwayin the run-up to the October Budget,

including a national lobby day for all ruralTDs and Senators in Dublin on September

17th. Local lobbying by IFA County Executivesacross the country is also taking place.

IFA Budget 2015 Lobbying

The IFA is insisting that over €500m offunding for RDP farm schemes must beprovided in this October’s budget to pay fora range of farm schemes next year andunderpin economic activity in rural Ireland.IFA President Eddie Downey has saidfunding for farm schemes underpins farmincomes and output and is particularlyrelevant given the low income situation insome sectors.

Taxation priorities for farming in Budget 2015

• Introduction of a Tax Deposit Scheme tomanage income volatility and extensionof income averaging to farm profitswhere spouse/farmer has an additionalself-employed income source;

• Retention of 90% Agricultural Relief tosupport the transfer of viable familyfarms;

• Introduction of a Phased TransferPartnership model, providing tax relief tothe farmholder during the defined periodof transfer to children of farm assets;

• Retention of Pay & File deadline forself-assessed income tax returns andsimplification of income tax returns forfarmers with low turnover;

• Extension of Land Leasing Income TaxExemption Scheme to includeincorporated farm companies as aqualifying lessee and removal of 40year age limit for qualifying lessors;

• Retention of Stamp DutyConsanguinity Relief for non-residential transfers.

Agri-Taxation Review

The Agri-Taxation Review provides anopportunity to ensure that the taxationsystem provides coherent support fordevelopment and growth of theagriculture sector.

This includes promoting on-farminvestment; encouraging new entrants tofarming; increasing land mobility; and,improving the overall structure, efficiencyand productive capacity of agriculture.

Off Road Declaration RenewalsDeadline

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Effective CAP implementation vital forfarm incomeWith the CAP Pillar I and Pillar IIproposals submitted to Brussels, theimmediate issue for farmers iseffective implementation so farmerscan get paid under the new schemes in2015.

CAP Pillar I – SFP

IFA President Eddie Downey has spelledout the IFA’s main priorities for CAP Pillar I- SFP:

• Young Farmers - the criteria used toimplement the top-up of €64/ha mustbe applied in a flexible way.

• National Reserve - the Minister mustensure that those farmers who havelow entitlements and who do notqualify for the Young Farmer top-upsecure additional payments to helpachieve viability on their farms.

• Greening must be simplified andimplemented in a more practical way.

• In relation to marginal land, it is

important that flexibility is shown askeeping land eligible for payment mustbe a priority.

• IFA is demanding that 100% SFPpayments are made promptly fromOctober to all 125,000 farmers eligible.ANC payments, commencing in thethird week of September must also bepaid promptly.

CAP Pillar II - RuralDevelopment

A strong IFA campaign at the end of 2013and early 2014 has delivered a RuralDevelopment package worth €580m perannum to Irish farmers. The priority for theMinister must be to ensure that vitalschemes such as GLAS and TAMs areopened at an early date so that paymentscan be made in 2015.

Rural Development Chairman, FlorMcCarthy has said that 30,000 farmersmust be allowed to join the GLAS schemein 2015 with the maximum payment of€5,000. The 140kg N limit must not be abarrier to entry.

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IFA Hill Farmers protest: Pictured at an IFA hill farmer protest outside theDepartments of Agriculture and Arts, Heritage and the Gaeltacht are Pat Dunne, HillFarming Chairman; Flor McCarthy, Rural Development Chairman; and Eddie Downey,

Key Features of Rural Development PlanGLAS• €1,450m funding up to 2020• 50,000 farmers with maximum payment of €5,000• Farmers with commonages and SACs can get GLAS + with an additional €2,000• Payment rate for commonages increased from €75/ha to €120/ha• Natura payments increased for hen harrier and chough areas and Shannon callows• Payment on other private Natura land of €79/ha needs to be further increased to

reflect the costs/restrictions imposed.

TAMs• Funding of €395m up to 2020• Grant aid of 40% for a wide range of investments across all sectors• 60% grant aid for young farmers• IFA has submitted a detailed list for grant aid and is demanding the scheme is

opened without delay.

Areas of Natural Constraint (ANCs)• €1,370m funding up to 2020 i.e. €195m per annum• Substantial increase in payments for islands to €250/ha on up to 34 ha• €75/ha increase where farmer lives onshore but farms island• Review of ANC areas to take place over the next number of years

Knowledge Transfer• Funding of €100m for BTAP, STAP, dairy and discussion groups in other sectors (IFA

also wants special hill measure, pigs included & farmers to be eligible for morethan one discussion group)

• Payment of €750 per farmer per annum to participate• IFA want full payment of €1,250 to farmers who would then pay the facilitator and

farmers should be eligible for more than one group

Beef Data and Genomics Programme • €295m allocated over 6 years, worth €80 per cow.

Further commonage flexibility requiredDespite getting the 80% collective agreement changed to a 50% management plan,the IFA remains opposed to this rule for access to GLAS in commonage areas. IFA hasmade major progress on most of the issues and our Hill and Rural DevelopmentCommittees are fully engaged with the Commonage Implementation Committee andthe Department to address outstanding concerns. IFA will hold the Minister to hiscommitment that if the 50% management agreement is not achieved for legitimatereasons, active farmers will still get priority to participate in GLAS. Hill farmers areencouraged to attend the Department meetings to raise their concerns.

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Farmers’ efforts on animal health mustbe recognised and rewardedIFA Animal Health Chairman, BertStewart has said the reduced incidenceof TB, which has been achievednationally, must result in cost savingsand a relaxation of controls for farmers.

He said the detailed submission IFA hasmade to the Minister for Agricultureincludes an increase to income supplementrates and the removal of unnecessary traderestrictions, including the prohibition topurchase in to restricted holdings. IFA isalso seeking an extension to the singletoncriteria to include more than one skinreactor.

BVDAs a result of the increase in financialsupports secured for farmers with PI calvesby IFA, the disposal rate of PIs hasincreased significantly. To date, about 75%of 2014 born PI calves have been disposedof and 87% of 2013 calves. The earlyremoval of PI animals from farms is crucialif the scheme is to achieve eradication ofthe disease within the stated timeframes.

IFA continues to pursue a payment of €250for farmers who dispose of over 10% oftheir calves as PIs. Farmers who havecompleted 3 years of intensive testingmust be provided with a lower cost testingoption. IFA is currently pursuing this issuewith AHI.

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IFA works to reduce fallen animal costs: IFA carried out a study trip to theNetherlands to investigate the cost-effective fallen animal disposal system operatedthere. Animal Health Chairman, Bert Stewart (above right) called on the Department toinvestigate replicating this approach in Ireland in order to reduce the cost of fallenanimal disposal for farmers and to remove the anti-competitive 125km maximumdistance requirement.

IFA Pigmeat DNA programme exposes mislabellingand increases QA on shelves

The IFA DNAcertified testing programme continues to yield results for pig farmers.The ability of packers/suppliers to mislead the consumer through mislabelling ofmeat is being challenged. Pressure resulting from the programme has seen thenumber of Quality Assured products on shop shelves increase, both own-brand andbranded.

Irish products carrying both the DNAtraceback logo and the Quality Assurance logohave, as a result of the programme, appeared on UK shelves this year for the firsttime.

IFA Pig Committee Chairman Pat O’Flaherty has said IFA continues to lobby on behalfof farmers in all areas particularly input costs, pig prices, environment and healthand has challenged factories on recent sharp price drops.

More issues in brief

Gorse Burning DatesHill Chairman Pat Dunne has called onthe Minister for Arts, Heritage and theGaeltacht to honour the commitment toextend the burning dates for gorse fromthe end of February to the 15th April. This will help hill farmers to improvethe management of their land and getbetter productivity.

Walks SchemeAs part of our Pre-Budget Submission,IFA is seeking the doubling of the walksscheme from the current level of 40walks with 2,000 farmers benefitting to80 walks for 4,000 farmers.

Farm Assist The number of farmers on farm assist,which currently stands at 10,000, islikely to increase due to acombination of low beef prices andthe loss of REPS. IFA is advising low income farmers toapply for either a top up or to qualifyin the first place.

SAC CompensationIFA SAC Project Team Chairman TomTurley has said that under GLAS,payments for all NATURA areas mustbe increased to reflect the cost ofrestrictions imposed on farming andother developments.

Poultry updateThe IFA National Poultry Committeecontinues to assist producer groupsto negotiate with individualprocessors on terms and conditionsfor farmers. The National Chairman,Nigel Reneghan and Committeelobbied successfully for the poultryindustry to be included under TAMs inthe RDP 2014-2020.

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Dairy: long-term outlook positive butshort term challengesRussian ban exacerbatesweak dairy marketsWhile global dairy demand has continued togrow strongly by around 2.5% per annum,world supply growth has speeded up to4.9% - with a consequent short termimbalance which has weakenedinternational commodity prices.

Russia’s ban on EU imports has furtherknocked market sentiment and prices.However, Russian consumers will need tosecure supplies elsewhere, which ought tohelp rebalance global markets.

Meanwhile, IFA has pressed the EUCommission for exceptional urgent marketsupport measures, financed from non-CAPfunds. APS for some cheeses, SMP andbutter has been opened by the Commission,and the intervention period extended toyear end. The IFA is pushing for furthermeasures including higher interventionprices and targeted export refunds.

Strong 2014 milk pricesneeded for farm cash flowDespite lower recent market returns, andthe up to 4c/l price reductions implementedby co-ops in milk prices to July, 2014 willsee record milk prices.

National Dairy Chairman Sean O’Leary hassaid “Exceptionally, farmers have suppliedpeak milk at strong milk prices. Theincreased income is fully needed to dealwith superlevy this year and next, and therequirement for on-farm investment andco-op share-up/financial commitments.Supplies will likely fall back dramatically incoming months, and co-ops must minimiseany impact on cash flow by holding milkprices for the rest of 2014.”

Dairy investment critical: Speaking at an IFA briefing President Eddie Downey andNational Dairy Chairman, Sean O’Leary told representatives of the Irish dairy industrythat a supportive taxation system is critical to underpin the investment required todeliver Food Harvest 2020 targets. Eddie Downey and Sean O’Leary have visited allmajor co-ops in recent months.

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Liquid milk needs its own Food Harvest2020 Programme

IFA Conference: The Business of Dairy

Farming Post 2015

21st October 2014, Kilashee House Hotel, Naas

At this Conference, IFA will askexpert speakers to help farmers

to better plan for a safe,sustainable, profitable business

post 2015.For more information see

www.ifa.ie

The IFA Liquid Milk Forum “Securing Fresh Milk Supplies Post 2015” last July heardhow, with the end of quotas, farmers will be able to produce more milk unimpeded.However, the growth opportunities are not in liquid milk, and with that portion oftheir production dwindling, farmers could be forced to make hard-headed choices tosimplify their system and make it more efficient and profitable – by jettisoning liquidmilk! The long term availability of locally produced fresh milk supplies cannot betaken for granted, especially during the winter months.

To sustain local, fresh supplies year-round for Ireland’s €500m fresh milk marketpost 2015, IFA Liquid Milk Chairman Teddy Cashman said the sector neededcommitment from all stakeholders. Fresh milk must feature in the Food Harvest2020 implementation plan; the National Milk Agency (NMA) must be revitalised withrepresentation from larger retailers; the NMA and Teagasc must assess theeconomic sustainability of producer pricing systems, and must flag input costvolatility in real time, Cashman said.

Mr Cashman emphasised the sector needs a cohesive approach from allstakeholders to secure its sustainability. “IFA will be holding meetings this autumnwith all stakeholders to progress our proposals,” he said.

Pictured above at the IFA Liquid Milk Forum were (l to r): Eoghan Sweeney,General Manager Aurivo Consumer Foods; Teddy Cashman, IFA National Liquid MilkChairman; Eddie Downey, IFA President; and, Kern Kinnear, Tesco CommercialBusiness Manager.

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Households with private wells will notpay water chargesThe Commission for Energy Regulation(CER) has confirmed to IFA thathouseholds that have private wells willnot pay additional charges for theirwater.

While welcoming this, NationalEnvironment and Rural Affairs ChairmanHarold Kingston has called on the CER andIrish Water to ensure farm families that donot have their own wells do not faceincreased charges. IFA is currenlty seekingan increase in the annual domesticallowances, an end to the wastefulduplication of water quality inspections bypublic bodies, and the establishment of acompensation package where farmland issterilised to accommodate waterabstraction for public use.

Coherent National Energy Planrequired

In a detailed submission to Government,IFA has called for a clear National EnergyPlan that sets out the need for theelectricity infrastructure proposed andfully considers all options, in particularundergrounding, when planning electicityprojects. Renewables and Alternative LandUse Chariman, James Murphy has alsocalled for a clear and robust renewableenergy plan for Ireland that includesadequate tariffs and an obligation onpublic bodies to purchase Irish producedenergy crops, where feasible.

Call for greater action to tacklerural litttering

Deputy President and CountrysideChairman Tim O’Leary has called on theDepartment of Environment to ensure thatlocal authorities more effectivelyimplement existing laws to curb theincreasing incidence of littering by passingmotorists. This follows the publication ofan IFA rural littering survey, which found95% of those surveyed would support theintroduction of stronger penalties.

Transport Minister changesfodder load height restrictionsfollowing IFA pressure

Harold Kingston has welcomed thedecision by the Department of Transport toexempt fodder from the load heightrestrictions introduced. He said, “This is apragmatic decision which follows on-going discussions between IFA and the Department. It recognises the the

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IFA, in association with Treemetrics, has launched a new timbermeasurement and valuation service for Farm Forestry members

Forest Assessor uses tree measurement technology to accurately predict thequantities and qualitity of log products each tree can produce and their potentialvalue. Using this technology, members will be provided with a more accurate andindependent forest management system, helping to capture more value from theforest resource.

Launching the service, IFA Forestry Chairman Michael Fleming said knowing theproduct mix, volumes and value of the timber will greatly help in achieving thismaximum value. Forest Assessor will give forest owners access to this this dataenabling a quick response to the ever changing market. Private forest owners willgain more confidence and control when entering the market place using theservice.

Smart Farming for cost savings: IFA-led Smart Farming programme has gonenationwide with farmers from across the country partipating in the free on-farm costsaving initiative. Diarmaid Hegarty’s farm and the 3Cs Discussion group in Cork hostedthe first in a series of talks taking place over the coming months. Pictured (l-r) are:Diarmaid Hegarty; Jimmy Hosford, Cork Central IFA Chairman; and, IFA Environmentand Rural Affairs Chairman Harold Kingston.

significant and unncessary transportationcosts that would have been imposed on thesector.”

Rural Ireland must have access toquality, affordable broadband

Tim O’Leary has called on Government toensure that every home and business inrural Ireland has access to a cost-effectiveand high-speed broadband service as partof the new National Broadband Schemerecently announded by the Minister forCommunications.

Remedial works needed toavoid flooding.

IFA Floods Project Team Chairman TomTurley has met with new OPW MinisterSimon Harris to secure commitments fora flood relief action programme to avoidor mitigate against flooding of farmland.

Tom Turley is insisting that the CFRAMSflood management plan be speeded up.

IFA Farm Forestry launchesnew Forest Assessor service

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Page 9: IFA Ploughing Newsletter - Autumn 2014

Trade must support growers throughtwo difficult financial yearsIFA Grain Chairman Liam Dunne saidthat two consecutive years of lowprices have decimated growers’incomes, despite good yields. Themerchant trade must step up to themark and support growers with astrong price for green grain thisharvest.

Marginal returns and weather-relatedproduction risks coupled with convergingpayments and onerous compliance rulesunder CAP are forcing many growers toreconsider their enterprise choice.

“The trade, including plant protectionproduct, machinery and fertilisermanufacturers, seed assemblers’ etc. needto take a longer term view, as the viabilityof their businesses is inextricably linked tothe health of the tillage sector. They needto recognise the gravity of currentsituation, cut their margins and pass backsavings to growers this season. Longerterm input costs need to be realigned toreflect substantially reduced grain prices.”

The major promotion of farm-to-farm tradeby the Grain Committee has created anexpanded market for an increasing numberof growers generating value added whiledelivering better livestock performance forlivestock farmers at a reduced cost

This year’s Irish malting barley crop was ofexcellent quality creating an opportunity forincreased malt exports. IFA secured €152/tfor surplus malting barley.

Tillage farmers must be given priorityaccess to GLAS otherwise we will see asignificant reduction in cereal sowings tohelp them deal with onerous greeningrequirements and price volatility.

9

IFA President Eddie Downey led an IFA delegation in a meeting with theNorthern Ireland Agriculture Minister Michelle O'Neill on the issue of liveexports to Northern Ireland. Front left to right: Martina Anderson Northern IrelandMEP; Michelle O'Neill Northern Ireland Minister for Agriculture; Eddie Downey, IFAPresident; Henry Burns National Chairman IFA Livestock Committee. Back Left to right:Bernard Donoghue, Chairman Agri-Aware; Matt Carthy, Sinn Fein MEP; Martin FerrisTD; Michael Biggins, IFA Livestock Committee; Liam Gilligan, Leitrim IFA LivestockChairman; and, John Hanley Chairman Roscommon IFA.

Inputs ChairmanJames McCarthysays controllinginput costs isvitally important tothe running of asuccessful modernday farmingbusiness. Thepublication of numerous IFA price surveyson products including fertiliser, feed, fuel,agri-chemicals, veterinary medicines etc.

empowers farmers to bargain for keenerprices.

The promotion of farm-to-farm trade forcereals has helped livestock feeders tosignificantly reduce their feed costs whileupping animal thrive and performance.However, the continued concentration ofpower into the hands of a number ofmajor global corporations, particularly onthe fertiliser front, must be tackledpolitically.

iFarm for market and price infoGet up-to-date information on market prices with iFarm, IFA’s smart phone app.

To get the app on your smartphone, download it free from iFarm.ie or text ‘iFarm’ and your full nameto 51000.

If you don’t have a smartphone you can still access the information free at www.iFarm.ie orwww.ifa.ie

You can also get market intelligence by email – send your name and membership number [email protected]

IFA price surveys empowering farmers

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Page 10: IFA Ploughing Newsletter - Autumn 2014

Getting the message out: IFA President Eddie Downey speakingto the media at an IFA protest on beef prices in Dublin earlier thisyear.

Making real pr

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IFA has stressed to Minister of State Simon Harris theimportance of allocating funds for necessary works toavoid future flooding. Back Row: Gerry Gunning ExecSecretary IFA; Joe Parlon, Offaly IFA Chairman; and, John PKeena. Front Row: Marcella Corcoran Kennedy, TD; Tom Turley,IFA Project Team Leader for flooding; and Minister Simon Harris.

New Agriculture Commissioner, Phil Hogan welcomed: IFAPresident Eddie Downey and General Secretary Pat Smith picturedearlier this year with incoming Commissioner for Agriculture andRural Development, Phil Hogan. IFA has also welcomed theappointment of Limerick man, Peter Power as his Chef de Cabinet.

Single FarmPayment

€1.214bn/year secured for SFP. Flatpayments and regionalisationprevented. Irish convergence modelminimised cuts to productive farmers

New RDP2014-2020

€580m/year secured in national andEU funding - 46% National fundingis highest in EU after Germany

GLASWorth €5,000 per year for up to50,000 farmers, with top-ups up of€2,000 possible

TAMs €395m allocated for on-farminvestment grants under RDP

DisadvantagedAreas

€1.37bn in funding over 7 years forAreas of Natural Constraint (ANCs)

DiscussionGroups

New BTAP, STAP & Dairy groups’funding from 2015. Also extended totillage and other sectors Sheep

paymentSheep Grassland funding retainedas part of SFP and increased to€15m – further progress required

Land mobilityandfarm transfer

Minister Noonan confirms no plan tochange 90% agricultural relief in farmtax review

Property Tax Applied to residential properties onlyand not farmland

BVDProgramme

€600,000 secured for BVD support,€120 payable on all calves removedfrom sucker herds and €75 payableon second and subsequent dairyheifer calves removed

Pork DNAIFA’s DNAcertified programme hasboosted volumes of pigmeatpurchased and lifted pig meat prices

Horticulturegrant

€4.2m allocated for horticultureinvestment in 2014

Retailerregulation

While Competition and ConsumerProtection Bill marks first step inregulating retailers, tougherregulation is required, including atEU level

Commonages

Increase in RDP payment forcommonage areas; reduction incollective agreement requirementfrom 80% to 50% - active farmersonly - and flexibility beyond this

CGT exemptionExemption from Capital Gains Tax forforced disposal of SFP etitlementsworth €25m

Contributorypensions

PRSI extended to assisting spousesof farmers from 2014, making iteasier to establish entitlement to acontributory pension

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Page 11: IFA Ploughing Newsletter - Autumn 2014

At a meeting withthe Taoiseach thekey message fromIFA was thatagriculture has anumber of prioritiesthat require urgentGovernmentattention to allowthe sector continueits central role in theeconomy. From left:Pat Smith, GeneralSecretary; EddieDowney, President;Taoiseach Enda Kenny;and, Michael Treacy,Director of EuropeanAffairs.

progress on the issues

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IFA President Eddie Downey briefing Fianna Fail leaderMicheal Martin on a range of issues for farmers, includingthe beef crisis, trade talks and CAP implementation.

Live exportsIncreased trade to North Africa andnegotiatedlive trade access to GB viaStena; progessing solutions for N. Ireland

Beef CrisisIFA has maintained a year longcampaign of pressure on beef priceand spec cuts

Sucklerpayment

€80 per cow under Beef Data andGenomics Scheme

Milk supplyagreements

Important improvements secured onprice commitments and conditions

Climate changeGovernment recognition thatIreland’s low carbon agriculture mustbe treated differently on emissionscuts

Nitrates review

Secured a number of positives fromthe nitrates review including renewalof nitrates derogation and 16%increase in national phosphorousallowance

Soils Directive Plans for Soils Directive dropped byEU Commission

Transportregulationconcessions

Load heights and trailer weightsamended to be more workable forfarmers

PylonsUndergrounding underconsideration in Governmentreview

Protein crops €3m coupled payment for proteincrops

Biotricitycontract

Secured contract for Biotricitypurchase of 12,000 tonnes ofstraw this year, and 100,000tonnes post-2016

Forestry

€105m secured for forestryprogramme in 2014 budget;Forestry Bill amended to includecompensation mechanism forfarmers denied felling licenses

Poultry Poultry included under TAMs inthe RDP

Turf cuttingcompensation

€2,000 upfront and €1,500thereafter for 15 years, or supplyof turf for 15 years or relocation.

Seafoodsector

€148m secured in EU funding forseafood sector

Unity – Strength – Delivery

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Page 12: IFA Ploughing Newsletter - Autumn 2014

Potato promotion: A €4.6m potato promotion application aimed at increasing potatoconsumption, will be made to the EU this autumn. This is a joint bid being undertakenby ROI (growers, Merchants, Bord Bia and the Department of Agriculture) with the UKPotato Council. Pictured at the National Potato Conference are are Eddie Downey, IFAPresident; Eddie Doyle, Potato Chairman; and, Minister of State Tom Hayes.

Farm Safety a major priority

Farm safety continues to be a toppriority for the IFA. Unfortunately therehas been a tragic spate of fatalities thisyear, with the current figures for 2014above the total for last year.

The IFA ran a National Farm SafetyAwareness Day on 21st July. This is notone off event, according to Maura CanningFarm Family and Social Affairs Chairperson,but a way to bring farm safety back intothe heart of farming - every single day.“We hope the awareness day will motivatefarmers to make a concerted effort in theirbusy and stressful lives to look aroundtheir workplace and make sure it is a safeenvironment for their family andemployees.”

The IFA Farm Safety campaign alsoincluded updating and distributing the IFAThink Safety Farm Safely leaflet; issuingreminder safety text messages at keytimes; dedicating a standalone page tofarm safety on www.ifa.ie; supporting theinaugural EMBRACE RemembranceService; taking part in interviews with themedia; and promotion of safety at majorfarming shows.

12

Nobody works harder for farmers

Edited by: Bryan BarryAssistant General Secretary

IFA, The Irish Farm CentreBluebell, Dublin 12Telephone: 01 450 0266Email: [email protected]

IFA.ie

iFarm.ie

@IFAmedia

IFA Member Services Nobody works harder for farmers

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Retail legislation a missed opportunity by Government

Progress has been made onextending contributory pensionsto partners of self-employedwho assist in the business. Forfull details see separatenewsletter

Doyle cautions potatoretailers and merchants

Potato Chairman Eddie Doyle hashighlighted the unacceptable behaviour ofretailers and merchants towards potatogrowers who are seeing a constanteroding of their farm gate price. 2014plantings are back 17% on last year,coupled with drier weather and the latestyield forecasts should ensure equilibriumin the market which must be reflected inthe farm gate price.

Following the publication of theCompetition and Consumer ProtectionAct, IFA’s Retail Project Team has saidthe legislation is a missed opportunityby the Government and does not go farenough to address the imbalance ofpower in the food supply chain.

Gerry Reilly, IFA Horticulture Chairmanand Matt Foley, Vegetable Chairmanhave said that they are concerned thatthe legislation fails to regulate belowcost selling by retailers.

“Farmers will judge the legislation onthe basis of what it does. We cannothave a repeat of the outrageousdiscounting by retailers that occurredin the fruit and vegetable sector lastChristmas.”

“IFA‘s position has always been that anindependent Ombudsman should beappointed by Government, similar to theGroceries Code Adjudicator in the UK, tooversee and implement this legislation.

IFA is concerned that the proposed newAuthority formed by the merger theNational Consumer Agency and theCompetition Authority will not besufficiently independent to provideanonymity and confidentiality tosuppliers.”

IFA awaits the publication of the draftRegulations by Minister Bruton and willbe making the case for these to providethe necessary protection to the primaryproducer to ensure a fairer return toproducers.

National Potato Day takes place on Friday October 3rd

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