Dáil Éireann debate -
Wednesday, 5 Feb 1997

Vol. 474 No. 4

Written Answers. - Farm Income.

Kathleen Lynch

Question:

77 Kathleen Lynch asked the Minister for Agriculture, Food and Forestry the proportion of farm income deriving from direct EU payments in 1996; the total amount of direct payments received by farmers in 1996; the proposals, if any, he intends advancing at national and EU level to further target such payments at areas of highest disadvantage; and if he will make a statement on the matter. [3168/97]

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

A total of £873 million in direct payments was used by the central statistics office in the calculation of its Advance Estimate of Agricultural Output, Input and Income which was published on 9 December 1996. This represented just over 42 per cent of estimated farm income — income from self employment and other trading income — in 1996.

An updated estimate of Agricultural Output, Input and Income is due to be published by the CSO on 6 February 1997. This estimate will include a revised figure for direct income payments which will be in excess of £900 million. This will affect the proportion of income represented by direct payments but until the revised income figure is released it is not possible, of course, to say to what extent it will be affected.

A proportion of direct EU payments made to farmers annually arises under the scheme of compensatory allowances which operates in the disadvantaged areas. Under that scheme higher payments are already made to farmers in the more severely disadvantaged areas. In addition, I forwarded proposals to the European Commission in October 1996 for the creation of a new category of extremely disadvantaged areas. This category will include areas, mainly in the west, where it can be shown that the disadvantage is more extreme than in other more severely handicapped areas. When approved, this proposal will give additional payments to farmers in the areas concerned.