10 Nov 2011
CAPITAL FUNDING ALLOCATION FOR AGRICULTURE TOTALLY INADEQUATE – BRYANEconomics
IFA President John Bryan has said that the capital funding allocation for agriculture contained in the Government’s Infrastructure and Capital Investment 2012-16 Framework is totally inadequate for the expansion plans of the sector.
Mr Bryan said, “The funding allocation of €168m per annum for capital expenditure in agriculture will be insufficient for the investment needed to achieve the growth targets of Food Harvest 2020. The funding allocation in 2012 is 37% lower than the 2011 allocation.”
IFA estimate that a capital programme of €200m in 2012 is necessary to fund on-farm and processing investment, the forestry programme and the investment programmes in the State Agencies.
John Bryan said, “Farming is a capital intensive industry and Government investment is critical to build on the recent growth in the sector, and to maximise the agri-food sector’s contribution to economic recovery. The proposed capital funding for the next five years, which represents an increase on the previous Government’s proposals, is recognition of the potential of the sector. However, more is needed.”