TD S, Senators, Committee Members I Would Like to Begin by Thanking the Committee for Giving

Introduction TD’s, Senators, committee members I would like to begin by thanking the committee for giving Macra na Feirme the opportunity to come into today and discuss with you our thoughts on the future development of the Dairy industry here in Ireland. I’m delighted to be joined today by my colleagues Bryan Hynes, Edmond Connolly and Derrie Dillon.

Macra na Feirmes presentation today will highlight the huge development potential and opportunities that exist for young dairy farmers post milk quota abolition. We will also highlight how policy makers, cooperatives, industry and farmers working together on the issues effecting the industry can result in young farmers availing of the exciting opportunities that exist in dairying.

There are issues effecting young dairy farmers which impact on their future development potential and the decisions they make in their careers. The issues are generally the same that effect all young farmers regardless of their enterprise. My presentation will also reflect and outline some of the general challenges and issues facing us, young farmer in the development of our businesses but also potential solutions.

This is a great time to be a young farmer either entering the industry or if you are established and trying to grow and drive forward your business. Huge opportunities exist and the future is bright for young, trained, energetic, technical proficient, business minded young farmers.

Young farmers believe that due to a combination of factors including expanding international demand for food, the ambitions targets set out in Foodwise 2025, mandatory measures for young farmers in CAP reform and milk quota abolition - that it certainly is a time of opportunity. However the number of dairy farms in Ireland and across the EU are reducing year on year according to DG Agriculture and it is important that we address this by ensuring young dairy farmers are encouraged and supported to enter the industry. Encouraging young people into dairying creates job and career opportunities and provides for a multiplier effect in rural areas that supports businesses and rural communities.

We, as the new generation of farmers to the industry will have to be technically proficient in our approach to the running of our businesses focusing on the drivers of profitability on our farms, utilisation of grass, soil fertility, improvements in breeding, and adopting sustainable practices like the principles of the Bord Bia Origin Green initiative. This excellent initiative makes Ireland a world leader in food production and highlights the sustainability of the Irish Agri industry.

We in Macra na Feirme as the representative body for young farmers hear from our members about the issues on the ground that challenges young dairy farmers and indeed all young farmers. The common denominator barriers for young farmers progressing within the industry are access to land, credit and education. Education, training and up skilling Macra na Feirme was founded in 1944 to educate young farmers and upskills them in the practical skills of farming. We actively encourage young farmers to engage with formal education. We also actively encourage young farmers during their farming career to develop themselves through engagement in continued professional develop and further training. Continued professional development is common in other professions but as was evidenced in a recent young farmer training needs analysis which was carried out by Macra na Feirme it identified that there was no real tradition of young farmers engaging in, or completing further training. What we are seeing is that when a young farmer returns home and is farming a few years, it is at this stage they realise they need further upskilling in the skills required to be successful.

Macra na Feirme provides this continued professional development and practical experience through our new Macra na Feirme Young Farmer Skillnet programme. This focuses on three main areas that young farmers identified in the training needs analysis: business, technical and personal. This programme is intended as an add on to the formal education which young farmers receive. Programmes and structures that encourage young dairy farmers to get involved in their cooperatives and processing industry are also essential to ensure innovation, energy and leadership are part of the future of the industry. Macra currently partners with ICOS and Teagasc to deliver training opportunities in this area.

Access to formal education is an issue that young farmers have identified. To comply with the requirements of the new CAP mandatory measures, young farmers have to have started their agricultural education by September 2016. The Government and Teagasc must ensure that sufficient resources are provided towards our formal agriculture education system to ensure that young farmers can get their agriculture education and that this education is to the highest standard and equips young farmers with the knowledge and skills they require.

As young farmers, we are business men and women and successful businesses require long- term planning, both financial and strategic and Macra na Feirme, is encouraging young farmers to up-skill themselves and take their next steps to improve their efficiency and technical ability. These steps will result in an increased profitability at farm gate level within their businesses and allow them to add value, drive output and develop their enterprises.

Access to land and land mobility Macra na Feirme continues to work on the access to land issue and rolls out a programme in land mobility through our land mobility service. The land mobility service sums up what our organisation can positively contribute to the industry. Young farmers first identified land mobility as an issue affecting them. We commissioned a Land Mobility and Succession report to give us the evidence. It identified that 48% of farmers over 50 had no identified successor. A service was then devised and rolled out. This service mean land is now easier to access for young farmers and the service is about getting more young blood into the industry through collaborative arrangements, long term leases, partnerships and share farming agreements. I’m delighted to inform you that the service is growing steadily with over 350 clients and approximately 140 arrangements in place. I would like to acknowledge the contributions the various stakeholders make to the service.

The measures introduced in last year’s budget to incentivise long term leases have been very important to encourage farmers to move away from conacre agreements to more long term arrangements and the newly announced family transfer partnership proposal is also very welcomed.

The land mobility service is contributing to the development of the dairy industry by providing new blood to the industry and encouraging young farmers and older farmers to work together to grow the farm business.

Since the abolition of quota dairy farmers are focussing more on milk production output and the rearing of replacement dairy stock consumes land which could otherwise be used for milk production. The result is a spin off enterprise which offers huge potential for farmers in more marginal areas to supplement their businesses or run contract rearing operations. This is a positive initiative which has huge potential and we need to encourage more types of these arrangements. Contract rearing is an enterprise which drystock farmers could look at running alongside their existing enterprise as a way of increase stocking rates and output. The land mobility service has established a huge number of successful contract rearing arrangements across the country.

We welcome the new Department of Agriculture partnership register and we are calling for a register of share farming arrangements to be put in place. There are issues to be addressed in terms of share farming but young farmers see huge opportunities in this area.

Access to finance The land mobility service means that land is more accessible for young people but access to finance to pay for this land and develop our businesses is a particular challenge. Young farmers don't have the security or past track record in most cases to draw down loans when starting out.

The EU Commissioner for Agriculture and Rural Development Phil Hogan at our recent young farmers conference told us about developments and funds available from the European Investment Bank. There does not seem to be a clear view here at Dept of Agriculture level and Government level as to how this money at lower interest rates through the Rural Development Programme can be funnelled into young farmers hands in Ireland. I would ask that the joint committee look into this issue.

In spite of the opportunities that exist it would be remise of me not to highlight briefly some of the challenges that still remain for young farmers within the dairy industry. Macra na Feirme as the only young farmer representative body in this country has a huge part to play in working with young farmers and members to identify the issue, speak about solutions and finding ways to address them and then lobby policy makers for change to improve our lot.

Incomes and commodity prices remain an issue this year particularly in the dairy, tillage and pig sectors. Income volatility remains a huge challenge for the industry. We welcome the establishment of the Dairy Forum by Minister Coveney. At the first meeting of the dairy forum I called for a top-up for young dairy farmers here in Ireland when the package from the EU commission is distributed. I’m delighted that Minister Coveney has made a commitment to give young dairy farmer this top up.

Macra na Feirme has called for an income volatility bond to be put in place to help dairy farmers deal with the volatility and fluctuations in commodity prices which are inevitable when selling on the world market. Our vision is that farmers in a year of strong product prices can invest money in this bond and draw it down in a year of harder economic times. This bond would go a long way towards addressing the issue of income volatility which is crippling young farmers. When we proposed this to the Department of Agriculture we were told state aid rules preclude this from being put in place. We are asking for the committee’s assistance to move this proposal forward and we would like to see the Department of Agriculture work with the EU Commission on this issue and develop workable solutions to overcome the state aids rules obstacles.

Common Agriculture Policy As young farmers we are active farmers who want to progress and develop our businesses. We will do something to get something. The CAP needs to be about rewarding active farmers. The historical model does not promote active farming. Nothing annoys young farmers more than to see their neighbour across the ditch farming extensively with very low stocking rates and next to no farming activity and receiving a significant payment based on their activity nearly 15 years ago. While the young farmer the other side of the ditch is very productive and driving on, have borrowings but are often receiving a very small or no basic payment.

Young farmer are happy to deliver on actions on climate change, actions on food security and also actions to ensure our economic viability. There are young farmers that have fallen on their feet with a top up and national reserve and there are farmers who have fallen through the cracks and are not eligible for any of the measures. There are farmers that are 26 years of age and eligible for no supports and farmers who are 37 and receive all young farmer supports.

Young farmers want commitments that young farmers in the future will not fall through the cracks and this is the challenge we face in shaping the next CAP. Supporting farmers to maximise the potential of their grazing infrastructure should also be a key component of the next CAP Rural Development Program. What I have outlined are the issues and the realities on the ground. I would like to thank the committee for inviting us in to present to you and Macra na Feirme looks forward to hearing your views today and also working with you on the issues affecting young dairy farmers and indeed all young farmers.

Thank you.