IFA President, Joe Healy, has said urgent Government action is needed to counteract the serious damage being done to farming enterprises in the beef and mushroom sectors arising from the recent sharp decline of Sterling.
“Sterling has been falling since April, when the UK general election was called, and it was at 85p:€1. The decline has accelerated in recent weeks, with Sterling falling to 93p:€1 by the end of August," he noted.
The beef and mushroom sectors are coming under intolerable price pressure as a result of this decline he maintained.
“Government cannot afford to wait any longer to provide direct support for beef farmers and mushroom growers who are being impacted today by the Sterling depreciation. Unless action is taken promptly, irreparable damage may be caused to the viability of beef farmers and mushroom producers," continued the IFA President.
“It is imperative that the Government now seek EU support for farm level measures that will counteract the price drops being experienced, which are arising directly from the Sterling depreciation, independent of other normal market forces.
The following options must be on the table:
- Direct support at EU level for affected producers through CAP Market Support measures, with support sought under Article 221 of the Single CMO, which provides the Commission with the authority to deal with Specific Problems
- A share of the Crisis Reserve fund to be used to provide direct support to farmers. The crisis reserve is intended to provide additional support for the agricultural sector in the case of major crises affecting agricultural production or distribution.
- An increase in EU State Aid De Minimis limits to target support at the mushroom sector.