Dáil Éireann debate -
Thursday, 18 Apr 1996

Vol. 464 No. 2

Written Answers. - Farm Income Support.

Kathleen Lynch

Question:

39 Kathleen Lynch asked the Minister for Agriculture, Food and Forestry the changes, if any, he will be seeking in the operation of the Common Agricultural Policy to ensure that income support measures are targeted at the 23 per cent of farming families, who, in 1987, had a gross household income of £5,000 or less; and if he will make a statement on the matter. [7737/96]

Minister for Agriculture, Food and Forestry (Mr. Yates)

There have been some significant changes since the survey, on which the figures referred to by the Deputy are based, was carried out.

In 1992 a major reform of the CAP was agreed. This involved lesser emphasis on the market support arrangements which existed up to then and increased emphasis on direct payments to producers. This is a more efficient system of getting the support where it is required i.e. to the producers. The direct payments, also contain a bias in favour of small and medium sized producers.

CAP reform also made provision for the introduction in member states of three important new structural measures viz. an agri-environment programme, an early retirement scheme for farmers and a package of forestry measures. These schemes are now fully operational in Ireland with total expenditure of nearly £77 million under the three schemes in 1995.

The position on farm incomes has improved very considerably since 1987 and particularly so since 1992. Since 1987 farm incomes have increased by 60 per cent, or 28 per cent after taking inflation into account.

The Operational Programme for Agriculture, Rural Development and Forestry which is being implemented under the 1994-99 round of Structural Funds offers considerable opportunities for farmers to improve their incomes by availing of grant aid for on-farm capital investment, farm diversification, and the development of forestry. Many of the schemes involved are particularly targeted at the lower income farmer. As part of the operational programme, Teagasc are providing farmers with a completely revised advisory service for farm viability and rural enterprise. In addition, the programme also provides for major income support to farmers under the compensatory headage allowances scheme which again is targeted at the lower income farmers in the disadvantaged areas. Increased payments under this scheme as well as improved social welfare entitlements since 1987 have contributed positively to the situation of farm families.

I will, in the course of all future negotiations on the CAP have particular regard to the position of small and medium sized producers.