IFA Presidential Address to the 62nd AGM
January 17th 2017
WELCOME
Ladies and Gentlemen
You are very welcome today to IFA’s 62nd Annual General Meeting.
The issues for Irish farmers and farm incomes in 2017 are as challenging as any we have faced over
the course of IFA’s history.
Brexit negotiations, elections across Europe, the Trump presidency – these will all impact on the policy,
price and trading environment for farming and our agri-food sector.
The review of the Areas of Natural Constraint and the opening of discussions on the CAP post 2020 will
also have long term implications for farm incomes and structures.
Never was it more important to have a strong IFA to represent the interests of Irish farmers.
2016 - ORGANISATION REVIEW
Nine months ago I was elected President of IFA.
And I stand by what I said to you at my first AGM.
Farmers need a strong IFA – a strong IFA to fight for viable farm incomes.
We promised to rebuild IFA and put trust and transparency at the heart of our Association.
The reform of IFA and its structure
Significant progress has been made on the renewal of IFA.
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Under the chairmanship of Teddy Cashman, the Lucey Implementation Committee brought forward
recommendations covering the key issues of:

Governance,

Transparency, and

IFA Income and Financing
I want to thank Teddy Cashman and his committee for their very professional, objective and thorough
work.
Governance
On governance, we have created the new position of Director General, and a separate role of
Secretary, who will have responsibility for advising the Council on all aspects of governance.
The new Remuneration Committee has set the pay of the President, Deputy President and Director
General, while the Audit Committee is doing important work and is led by an independent chairman.
Transparency
On transparency, we have published the remuneration of key management personnel, and we have
gone significantly further than the accounting requirements.
We have provided details on:

The individual payments to the President, Deputy President and Director General; and

Aggregate payments to other senior management, senior staff and Executive Council.

In addition, all pay levels in IFA have been independently benchmarked.
Income and Financing
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On IFA income, the Committee recommended the combined membership and levy model to be the
fairest and most equitable system.
This maintains IFA’s income independence and allows all farmers to contribute equally and
proportionately based on the scale of their enterprise.
The Committee also made a number of important recommendations on improving the transparency and
operation of the levy system.
The Lucey committee recommendations were fully debated by this Executive Council, our County
Executives and our Branch AGMs throughout November and December.
We have now commenced putting in place the reformed levy system.
Currently, I am meeting a number of the key collectors in dairy co-ops, meat factories, and marts. They
have clearly indicated their support for the new funding arrangements.
It is critical that IFA is properly resourced to enable us to deliver for Irish farmers.
Director General
Today, I am delighted to introduce our new Director General, Damian McDonald.
Damian brings with him a strong reputation for successful management of organisations, both with
Horse Sport Ireland and, previously, with Macra.
He has also worked with IFA, and has a great knowledge of the issues facing farming in Ireland today.
I know that you join me in wishing Damian well and in giving him our full support as he takes on this
challenging role
2016 - IFA WORK
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Throughout 2016, IFA continued to work hard and deliver for farmers, with a strong and focused farm
income campaign.
We made it very clear to Government that profitability at farm level is essential for growth in the agrifood sector, as set out in Foodwise 2025.
Budget 2017
As a result we delivered real returns for farmers in the budget.
We made significant progress on the farm schemes, securing an extra €107m in funding.
This included:

The new Sheep Welfare Scheme, worth €1,500 per year for a farmer with 150 ewes;

The reopening of GLAS, to accommodate over 50,000 farmers;

Funding of €52m for the Beef Data and Genomics Scheme, which will reopen to new entrants;
and

An increased budget for TAMS, worth €50m.
Following strong pressure from IFA, the reintroduction of the income and child disregards in the means
test for Farm Assist will result in greater numbers of low income farmers qualifying for this crucial
payment.
And there will be 500 more places in the Rural Social Scheme.
The Government also responded positively to two very specific IFA proposals in the Budget.
These were
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
the introduction of a ‘step-out’ system from income averaging; and

The €150m agri-cashflow loan, at an interest rate of 2.95%.
For a farmer with a merchant credit bill of €20,000, this could mean savings of up to €1,800 in annual
interest.
Demand among farmers for this loan scheme is high.
I am calling on Minister Creed to ensure that the money is available to farmers by the end of this month,
as promised.
IFA also continued to work with farmers facing credit difficulties throughout 2016.
I have a strong message today for both the banks and agencies dealing with distressed loans.
We will not tolerate the ‘vulture fund approach’ of stripping assets, with no regard for the family farm.
IFA income and price campaigns
When I was elected, I gave a commitment to tackle the issues affecting market prices and incomes in
every sector.
This past year, we have worked hard

Keeping the pressure on co-ops to support the milk price, and, from July, to lift prices

Opening new markets for live exports, including Turkey

Securing the removal of beef from the draft offer on Mercosur

Protesting at the ports and exposing the quality deficiencies in imported grain

Getting the glyphosate licence extended in Brussels

Campaigning for the abolition of EU import tariffs and duties on fertiliser. Prices last season fell
by over 30%.
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Our work on all these fronts continues into 2017.
CHALLENGES FOR 2017
Brexit
Brexit presents the most serious threat to Irish farming and our agri-food sector for half a century.
With 40% of our food exports going to the UK, no other Member State and no other sector is as
exposed in these negotiations.
Agriculture and food cannot become a battleground between Brussels and London. There are too many
farm livelihoods and jobs at stake.
Politics cannot be allowed override our fundamental economic interests.
The Irish Government must use the strong relationship it has with both EU and UK leaders to influence
a constructive approach to these difficult negotiations.
In Brussels, the Commissioner for Agriculture, Phil Hogan, must make the retention of free trade in
agriculture and food products between the EU and UK a priority.
In the short term, uncertainty has led to the weakening of sterling putting serious pressure on prices
and exports.
Let’s be clear, it is farmers who have taken most of the pain resulting from the weakness of sterling.
Beef farmers took a hit of €150m last year from this alone and mushroom farmers saw their margins
wiped out.
These losses are a direct result of a political decision outside farmers’ control and cannot be tolerated.
Politicians in Dublin and Brussels cannot ignore the ongoing impact of the sterling devaluation, and
direct aid for the farmers and sectors affected must be on the agenda.
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CAP Reform
On the Common Agricultural Policy, Commissioner Hogan has announced a consultation on the future
of the CAP.
The CAP post 2020 must work for Irish farmers.
At the heart of the IFA campaign, will be a strong CAP budget, with direct payments supporting active
farmers, and a well-funded Rural Development Programme.
There must also be a reduction in bureaucracy and red tape, with supports for young farmers and
improved volatility and safety net market measures.
I want to warn politicians today against any reduction in the CAP budget as a result of Brexit.
If EU solidarity means anything, then the budget shortfall must be made good so that farmers are not
hit with CAP cuts when the UK leaves.
Review of the ANCs
Last December in Carrick-on-Shannon, IFA launched its campaign on the review of the ANCs.
We set out our priorities for this vital income support for farmers. These are:

Protection of all areas currently designated,

Reversal of cuts and restoration of funding to 2008 levels, and

Payment rates that reflect the natural handicap
IFA will be escalating our campaign through intensive lobbying of TDs and Senators across the country
in the coming months.
The Government must ensure that farmers are not let down in this review.
Rural Development Funding
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We are now in the fourth year of the Rural Development Programme.
The inclusion of the new Sheep Welfare scheme and additions to TAMSs are welcome.
To ensure full drawdown of Ireland’s funding allocation, there is further potential to increase ANC
payments and to expand other schemes.
I want to put down a clear marker to the Minister for Agriculture on RDP funding.
The full €4b of the Rural Development programme must be spent.
Charter of Farmers Rights
The delivery of direct payments to farmers on time is critical.
While much improved in 2016, payment delays arising from satellite inspections will not be tolerated in
2017.
The current delays with GLAS are totally unacceptable.
Farmers are very frustrated and have a right to be angry.
Similarly, with TAMS, the approval and payment system in 2016 left a lot to be desired.
Minister Creed must ensure that all payment deadlines set out in the Charter of Farmers’ rights are
honoured in full.
Agri-markets task force
Improving the position of farmers in the food supply chain is a priority for IFA.
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The report from Commissioner Hogan’s agri-market task force is welcome.
It sets out the need for increased price transparency in the food chain and for independent and effective
enforcement of retail regulations.
I am calling on the Commissioner to deliver on these recommendations by the end of 2017.
Retail regulation
At home, we will continue to press Minister for Enterprise, Mary Mitchell O’Connor, on the appointment
of an independent retail Ombudsman and a ban on below cost selling.
Farmers need to have confidence that the Grocery regulations introduced last year to protect suppliers
will be enforced.
At the IFA retail conference, the UK Adjudicator, Christine Tacon, clearly demonstrated that proactive
enforcement can rebalance the trading relationship between suppliers and retailers.
In addition, I am calling on the Minister for Agriculture to make good on the commitment to establish a
Horticulture Forum, led by the Department of Agriculture.
Market Access and Trade Negotiations
As an export dependent sector, increasing market access remains critical for the growth of the Irish
agri-food sector.
The increased promotional funding for Bord Bia in October’s budget, to diversify and grow our exports
into non-UK markets, is welcome.
In addition, the Department of Agriculture’s market access unit must be strengthened, with increased
resources to deliver new markets, for our processed and live export trade.
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However, opening markets must be more than media announcements. We must be able to achieve a
price return for farmers.
While recognising the opportunities, we must also guard against the threats arising from trade
negotiations.
The EU Commission study on the cumulative impact of future trade deals on agriculture provided a
major wakeup call for EU negotiators and the Irish Government.
The report clearly shows the damage to the beef sector, in particular, from a Mercosur trade deal.
In any future negotiations, the EU must take account of the cumulative impact of previous concessions
on market access, such as those given for beef and pigmeat in the CETA trade deal.
Climate Change
IFA has made a real difference in reshaping climate policy, by ensuring that Ireland’s 2030 climate
targets are more balanced.
There is now recognition for the multiple roles of farmers, as food, fuel and energy producers in addition
to meeting environmental requirements.
Irish farmers are actively involved in sustainability programmes across all sectors.
However,
sustainability must also deliver an economic return for farm families.
This year over 1,000 farmers will engage in the IFA-led Smart Farming programme, which aims to
achieve cost savings of at least €5,000 per farm, while delivering environmental benefits.
2017 COMMODITY ISSUES
Beef
2016 was a difficult year on cattle prices.
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After the Brexit referendum, factories took advantage of the uncertainty and seriously undermined
market confidence to get prices down.
Farmers took a hit of up to €100 per head in the Autumn, with a knock on impact on weanling and store
producers.
Irish cattle prices have fallen below the EU average, and an unacceptable price gap has opened up
with our main export market in Britain.
With UK prices at the equivalent of €4.40 per kilo, factories are in a strong position to increase prices to
winter finishers.
We need to see an immediate and substantial price lift and a willingness to offer forward contracts to
farmers.
Live exports
With supplies forecast to increase by 100,000 head, we need a strong live export trade, particularly for
calves, this spring.
Minister Creed must prioritise live exports, including opening new markets, such as Egypt, and getting
boats sailing again to Turkey.
In addition, the labelling restrictions which are being used to undermine the important live trade to
Northern Ireland and Britain must be resolved.
Suckler Cow
To halt the decline of our very important suckler herd, which is the backbone of our quality beef sector,
IFA is demanding increased support, of €200 per cow.
Quality assurance
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IFA is also insisting that the new Bord Bia Quality Assurance Scheme, must be much more farmer
friendly, with a close out period that gives farmers time to correct compliance issues.
Dairy
In dairying, after a three year downturn, we are seeing improvements in market returns.
Milk price
Co-ops must deliver a substantial milk price increase, and reach at least 33c per litre ahead of the
spring peak.
Volatility
We must learn from the hard experience of the last 3 years and develop more options to help farmers
manage their way through volatility.
The dairy industry must deliver more fixed price contracts, and other options, such as futures-based
schemes, while there is further potential for volatility measures through the tax system.
SDAS
The Sustainable Dairy Assurance Scheme is a crucial part of the Irish dairy sector’s export
development strategy.
Coops need to incentivise all farmers to participate, by removing the fear factor of audits and delivering
tangible benefits from the market.
Liquid Milk
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For the last number of years, payments to specialist liquid milk farmers have not covered their winter
costs.
Liquid milk cannot be taken for granted.
Autumn calving figures have fallen by 15% in 2015 and by a further 12% in 2016.
Liquid milk producers are clearly voting with their feet.
IFA has developed a strategy to sustain fresh milk, a sector worth €520m annually, and Minister for
Agriculture Michael Creed must act on it.
Grain
IFA has made a strong case for an aid package for tillage growers who suffered severe weather losses
last harvest.
I am calling on Minister Creed to immediately make available funding of €4m for these farmers - There
is no excuse for any further delay on this decision.
With high global stocks, the outlook for tillage farming remains very challenging in 2017.
The survival of our native grain sector is critical for Irish farming. Greater import dependence would
mean higher feed prices and damage our competitiveness.
All stakeholders must step up to the plate on feed certification and greater use of native grain to
maximise use in livestock rations.
There must be greater use of Irish malt and grain to supply the growing Irish whiskey and craft beer
sectors.
The National Grain Committee campaigned hard and got measures for tillage included in TAMS. This
grant aid must be available to farmers without further delay.
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As a major input cost in farming, and for grain farmers in particular, I want to assure you that the IFA
fertiliser campaign will intensify in 2017.
Sheepmeat
A determined campaign by IFA delivered €10 per ewe under the new sheep scheme, worth €25m to the
sector.
Through the sheep reflection group in Brussels, IFA has set out the policy blueprint for sheep in the
CAP post 2020.
The two key priorities are increased targeted direct payments and strong funding for promotions.
Hogget producers need a significant price lift to cover the higher costs involved, while mid-season lamb
must achieve a minimum of €100 a head during the peak selling months.
Pigs and Poultry
After a number of difficult years, the outlook for the pig sector is positive in 2017.
Through the IFA backed DNA scheme, we will continue to ensure that misleading labelling is removed
from both the retail and catering sectors.
We will also continue to monitor the wholesale and foodservices sector to ensure correct labelling and
increased support for Irish poultry products in 2017.
Nitrates review
The review of the nitrates regulations and river basin management plans this year must support farmers
to sustainably deliver on objectives of Foodwise 2025.
The transitional arrangements must be resolved as a matter of urgency for the pigs and poultry sectors,
while the continuation of the overall derogation is a red line issue for IFA and the 7,000 farmers who
depend on it.
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Animal Health
We have re-established the Animal Health committee, in line with our commitment, and each county
executive will have a member responsible for animal health matters.
Priority issues for the committee include the main animal diseases, Anti-microbial resistance, fallen
animals and veterinary medicine costs.
Forestry and Bioenergy
The forest sector continues to grow, with over 6,500 hectares of new forests established in 2016.
However, the environmental requirements and restrictions on farm forestry are excessive and must be
reduced.
As more farmers become timber producers, support to mobilise the resource is required, in order to
maximise the opportunities for new markets, particularly in bioenergy.
Aquaculture
I welcome Minister Creed’s response to IFA’s sustained campaign for a proper regulatory system for
the €150m aquaculture sector, with the recent appointment of an independent aquaculture licence
review group.
IFA will insist on a fairer, quicker and more cost effective licensing system, which will help the industry
grow and provide more jobs and exports for coastal communities.
Farm Family
Despite the commitment in the programme for Government, and a sustained IFA campaign, the
discrimination in the treatment of farming assets under the Fair Deal Scheme remains.
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In 2017, IFA will continue to seek the introduction of a fair valuation of these assets, similar to the 90%
Agriculture Relief.
Designated Areas
The IFA SAC Project team has been revamped, with representatives from each designated area to deal
with specific issues as they arise.
IFA is insisting that the current payment system for farmers with designated land must be overhauled.
There can be no designation without proper compensation.
In addition, I want to assure farmers affected by infrastructure projects such as electricity, water and
greenways that IFA will work tirelessly on their behalf.
Heritage Bill
I wish to acknowledge the efforts of Minister Humphreys to progress the Heritage Bill.
The legislation must now be passed to allow a more practical approach to managing hedges and gorse
on hill land.
Flooding
The IFA Flood project team will be liaising with Minister Sean Canney to ensure that the recent
announcements of maintenance work on the River Shannon are acted upon.
IFA is clear that an appropriate valuation system must be developed so that farmland is not
discriminated against in flood investment and protection programmes.
Data Awareness and Broadband
Farm data is becoming a valuable asset.
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IFA is actively involved in protecting farmers’ rights and data ownership to ensure that the benefits
realised from advances in technology go to farmers.
On the national broadband plan, it is critical that farming and the rural community have access to a high
speed fibre broadband network.
Conclusion
Ladies and Gentlemen,
The Farmers Rights Campaign began in 1966 and continued into 1967.
In October 1966, the President of the National Farmers’ Association Rickard Deasy led 16 men out of
Bantry to set out on a journey to secure negotiating rights for farmers with the Government.
I have the privilege of being part of the ongoing commemorations of this campaign, and in witnessing
the strong sense of pride that exists among the families and the wider community for their role in
NFA/IFA.
The late Raymond Smith, who served as NFA press officer, recalling the impact of the Farmers Rights
Campaign wrote:
“They saw clearly, too, without a strong overall national organisation to crystallise their claims, they
could get nowhere."
These words still ring true today.
Representing farmers is our core work. And it will remain so.
I want to thank you for your full support over the past year.
We achieved a lot on behalf of farmers.
Now, we have a huge work programme ahead of us in 2017.
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Together we can tackle these challenges head-on and deliver real results for Irish farmers.
Thank you
ENDS
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