Dáil Éireann debate -
Thursday, 5 Dec 1991

Vol. 414 No. 2

Written Answers. - Farm Incomes Estimate.

Tony Gregory

Question:

38 Mr. Gregory asked the Minister for Finance if his attention has been drawn to the fact that in 1989 Teagasc estimated that 70,000 full-time farms had an average family farm income in excess of £15,000 per annum; how this compares with the Revenue Commissioners' own estimates; and if he will make a statement on the matter.

Minister for Finance (Mr. B. Ahern)

Statistics are not available to the Revenue Commissioners which would enable a direct comparison to be made with those quoted by the Deputy, which are taken from the Teagasc national farm survey. There are fundamental differences involved in the family farm income concept and that of gross income for tax purposes of full-time farmers as used by the Revenue Commissioners.

The Teagasc survey estimated that there was a total of 70,000 full-time farms, and that on these farms the average estimated family farm income in 1989 was £15,765 per farm. It uses a definition of "full-time farm" which is basically related to the size of the farm and not to the existence or otherwise of another occupation held by the farmer.

The survey uses a concept of "family farm income", the main measure of income used in the survey, which is broadly defined as the return to family labour, management input and farmers' own capital invested in the farm business. It should also be noted that it can be inclusive of the income, so defined, of more than one individual per farm. Certain items, for example, such as depreciation and valuation of stock changes are treated differently than in the tax code. The concept is designed for farm management purposes and is not the same as that of gross income for tax purposes. Gross income for tax purposes is basically net profit, that is the profit figure which emerges after business interest and other outgoings are taken into account.

The latest available Revenue statistics in respect of gross incomes of full-time farmers, which are based on returns received for the income tax year 1988-89, show that the average gross income declared by such full-time farmers for that year is estimated at £10,600.