Farmers urge government to extend grant scheme amid increased costs

The emergency grant is due to run out in the new year

Dairy farmers fear the industry could face a "dire situation" without further financial help from the government in the new year.

Farmers say they are facing increased expenses for feed and fuel.

In August, the States awarded dairy farmers a collective grant of £486,000 to deal with increased costs which were blamed on the war in Ukraine.

The head of the Guernsey Farmers Association (GFA) said the last grant payment was due to be made in January.

GFA chair Michael Bray said without further help from the government, milk prices could rise.

Mr Bray said: "To lose the payment and to go back without the Ukraine war support that we've had would be a real dire situation for the industry and the alternative option is to put the milk price up.

"We as farmers don't want to do that because we know how much that hurts everybody, and it's just not a great solution to the island's dairy cows."

'Very high costs'

Guernsey States said it was aware the situation for farmers in the short-term was very challenging, and a review of future support for the dairy sector was ongoing.

A spokesperson for the Office for Environment and Infrastructure said: "Earlier this year, emergency funding of £486,000 from the Budget Reserve was agreed to help the industry survive a period of very high costs caused in large part by the ongoing war in Ukraine. 

"At the same time, committees agreed that a review should be carried out to look at the sector's long-term sustainability."

The spokesperson said the review was expected to report back early in 2023.

They said: "We're very aware that the situation for farmers in the short-term remains very challenging, and we are actively discussing this with the industry and the Policy & Resources Committee, and we will comment further when we are able to do so."

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