Dáil Éireann debate -
Tuesday, 13 Nov 1990

Vol. 402 No. 5

Written Answers. - Disadvantaged Areas Scheme.

Ivan Yates

Question:

94 Mr. Yates asked the Minister for Agriculture and Food whether, in relation to the assessment of income for extension of the disadvantaged areas, a national assessment is carried out and the way in which this is undertaken; if he will indicate the income level which represents 80 per cent of the national average; and if he will make a statement on the matter.

Minister for Agriculture and Food (Mr. O'Kennedy)

The average farm income figures officially notified to, and accepted by the EC are those shown in the farm accountancy data network (FADN) returns made each year by Teagasc at the request of the Central Statistics Office as the FADN Liaison Agency for Ireland.

At the time the 1989 survey commenced, the latest year for which FADN figures had been notified to the EC was 1985-86. Because 1985-86 was not a very good year for farm incomes, however, and because it is fairer when considering farm incomes to allow for variations from year to year arising from poor weather and other factors it was decided that it would be more equitable to aggregate the average incomes shown in FADN over the three years 1983-84, 1984-85 and 1985-86 to obtain an average national farm income figure for use in the survey.

The national average farm income per farm worker established in this way came to £5,620 and 80 per cent of that amount, of course, came to £4,496. In checking during the course of the 1989 survey whether or not the average farm income per farm worker in an area exceeded this £4,496 level officers of my Department obtained from the farmers surveyed full details of their stock numbers, crop acreages, etc., and applied to these the average of the net margins for the three years 1983, 1984 and 1985 that had been notified officially to the EC as part of the FADN procedure so that they were comparing like with like — i.e. income calculated by reference to the average net margins used for those three years compared to the average farm income figure per farm worker for the same period.

Since we were obliged to present our case for extension and reclassification of our disadvantaged areas to the EC Commission in a manner that would leave us open to as little challenge as possible, I am satisfied that this use of income figures and net margins already officially notified to, and accepted by, the EC was the most appropriate mechanism for presenting a strong and credible case and for ensuring fair play to all farmers surveyed.