Noel Davern
Question:553 Mr. Davern asked the Minister for Agriculture, Food and Forestry the future he forecasts for dry stock farmers; and if he will make a statement on their declining income. [1062/96]
Written Answers. - Dry Stock Farming.
The income situation of cattle producers has improved considerably since the introduction of the Common Agricultural Policy reform measures in 1992. Under those measures increased premium payments were introduced to compensate for the phased 15 per cent reduction in intervention prices over a three year period. In the meantime cattle prices have actually increased by 10 per cent over the same period while premium payments will amount to some £370 million in respect of applications submitted in 1995 compared with some £120 million in 1992.
While these increases in payments and prices are a very welcome boost for drystock farmers I am, nevertheless, concerned that the average income in this sector remains relatively low in comparison with other mainstream farming activities. In order to ascertain more precisely the income position of these producers, I have asked my Department to undertake a study of the sector. I hope that the findings of this report will be available in the near future.
However, of immediate concern to me is the current level of export refunds available for cattle and beef exports. At the Council of Agriculture Ministers this week I impressed on the Commissioner and my colleagues in the Council the need for an immediate increase in export refunds in order to ensure adequate returns for our beef producers, and in particular our winter fatteners. I will continue to seek a restoration of the refunds to adequate levels at this week's Beef Management Committee.
Because most Irish traders still hold sufficient licences prefixed at the higher refund rates there should be no immediate effect on cattle prices. In addition, the deseasonalisation slaughter premium worth up to £60 per steer slaughtered this spring will also assist in maintaining producers' incomes at this time.