Farmers have been bluntly told there will be no special fund to assist them despite a collapse in their income due to the effects of this year’s wet weather.
But the IFA and opposition parties are warning that farmers are in need of immediate aid in order to head off a crisis in the agriculture industry, with Labour warning that food prices could soon rise if action is not taken.
The Minster for Agriculture Mr Walsh said today that no new finance was available but said a number of measures to ease pressure on farmers had been incepted. These includes basing the social welfare Farm Assist scheme on last year’s income.
"The bottom line is, in relation to a specific fund, we do not have that kind of money available to us given the tight budgetary situation we have now," Mr Walsh told RTE radio.
"[Farmers] are a resilient group, they are coping very well with the situation," he added.
Falling farm incomes caused by the foot-and-mouth crisis and lower yields - down by up to 70 per cent in some sectors - due to bad weather this year, have hit farm incomes.
The Irish Farmers Association President, Mr John Dillon, said, farmers were now under huge financial and stress pressure. Grass growth has been badly effected with silage and hay making almost impossible, he said, adding that the grain harvest has totally stalled.
Mr Dillon said the Government must take immediate action to restore beef and milk prices and bring forward direct payments to livestock and grain farmers. He aslo called on the Department of Social and Family Affairs to adopt a sympathetic approach in their assessment and processing of farm assist cases.
Both Fine Gael and Labour are accusing the Government of failing to appreciate the extent of the crisis and the knock-on effect it could have for the wider economy.
Labour agriculture spokesman Mr Jack Wall said farmers may leave the industry if the Government does not improve its "half-hearted" approach to farmers’ financial situation.
He also warned that food prices will increase if the Government does not incept a financial assistance policy. He says low yields could lead to demand exceeding supply.
"Consumers of dairy and vegetable produce will soon begin to feel the effects of lower crop and milk outputs, if they are not doing so already ... [they] may well soon experience price increases on these products," he said.
Fine Gael spokesman, Mr Billy Timmins said the current difficulties and the future of the Common Agriculture Policy (CAP) have created "unprecedented despondency among farming communities".
"The Government now has an opportunity to demonstrate its commitment to the future of agriculture by implementing an assistance policy similar to that used for other sectors in the past," Mr Timmins said.
While incomes for this year will be down in most sectors, the Department’s Annual report released today shows aggregate farm incomes for 2001 increased by 4.2 per cent despite the foot-and-mouth crisis.
Mr Walsh said direct payments to farmers this year have increased to their highest level and that by the end of 2001, 94 per cent of a 200-point action plan for the agri-food sector had either been implemented or "substantial progress" had been made.
He said: "Significant progress has been achieved, against a context of extraordinary challenges. I believe the Department has shown exceptional adaptability in rapidly changing circumstances and I am confident that we will meet the challenges that lie ahead with the same vigour."