Kilkenny farmer says small Budget tweaks 'not enough to address big problems'

By Gráinne Ní Aodha, PA

A dairy farmer in Kilkenny has said small Budget tweaks to farming schemes are appreciated but are “not enough to really address the big problem”.

Bill O’Keeffe said his dairy farm near Clara has been in the family for generations.

“The past year has been one of the toughest in agriculture, the costs of inputs are through the roof but the weather has exacerbated that. A very tough year,” he added.

He said of the Budget: “There wasn’t a huge amount in it to support dairy farmers. It was a Budget that has addressed the cost of living in general rather than the cost of doing business.

“Little things like carbon tax is kicking in this month, increased PSO (public service obligation) levy is going to kick in as well, so we’re seeing costs increase every day.

“We’ve a family of four kids at home so child welfare increases will help. Parents are of pensionable age so those increases will help. My wife and I are both working so tax relief will be a help inside the house.

“It is addressing some of the cost of doing living, but in general it’s the cost of doing business that is putting the most pressure on farms at the moment.”

Minister for Finance Jack Chambers announced on Tuesday that officials would examine the possibility of an income volatility measure to support farmers ahead of next year’s Budget.

He said this would involve considering how it would work in line with financial legal and governance structures.

Mr O’Keeffe said: “That would be for when you have a good year in dairy and you can put aside some of that cash without paying tax on it and use it to bring back into a business at a time when the price comes back.

“It might help next year if price is up and if we have a good year, but for the moment it won’t help retrospectively or the current situation.”

Mr O’Keeffe, chairman of the IFA Irish Farm Business Committee, said farmers were not ignored in the Budget, mentioning an €8 million boost to the Beef Welfare Scheme and €30 million for a tillage scheme.

“There has been an effort made. No, farmers haven’t been forgotten about but the real pressure is coming from the cost side and it’s putting huge pressure on farm incomes and the ability to generate a margin. Farming at the moment is very difficult.

“We acknowledge them (the small changes), they are appreciated, it will do something, but not enough to really address the big problem, but maybe there wasn’t a solution out there for that.”