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Dáil Éireann debate -
Wednesday, 23 Apr 1997

Vol. 478 No. 2

Written Answers. - Farm Incomes.

Eric J. Byrne

Question:

48 Mr. E. Byrne asked the Minister for Agriculture, Food and Forestry the percentage of farmers with household incomes of under £5,000 and under £10,000; the proportion of EU direct payments going to farmers in these categories; the proposals, if any, at EU level to further target resources at the poorest farmers; and if he will make a statement on the matter. [10752/97]

The CSO has estimated that of all farmers surveyed in its household budget survey approximately 13 per cent have a household income of under £5,000 while 24 per cent have a household income of between £5,000 and £10,000. Data on household income is not recorded for recipients of direct payments, and therefore it is not possible to say what proportion of direct payments goes to farmers in these income categories.

However, data from Teagasc's national farm survey shows that such payments constitute a much larger share of farming income on farms with relatively low farm income than on farms with relatively high farm incomes, as is indicated in the following table.

In the Community Support Framework, under both the operational programme for agriculture, rural development and forestry and the human resources heading, a number of measures are targeted at farms in disadvantaged areas and at people at risk of social exclusion. Low income farm households also benefit from national social welfare provisions and from the early retirement, forestry and agri-environment programmes under the CAP reform accompanying measures.

Contribution of Direct Payments to Family Farm Income

Size in ESU

Family Farm Income

Direct Payments

Direct Payments as % of FFI

% of farming population in each category

1

2

3

4=3/2

1,495

878

59

16

2.0-4.0

2,711

1,961

72

14

4.0-8.0

4,200

3,442

82

21

8.0-16.0

7,665

5,571

73

20

16.0-40.0

15,997

6,754

42

20

>40.0

37,786

10,613

28

9

All sizes

9,644

4,554

47

All>2.0

11,176

5,245

47

Source: Teagasc National Farm Survey 1995, Table 9a.
ESU: As an alternative to measuring farm size by surface area, the size of the farm business is measured in European Size Units (ESU), where 1 ESU = 1,200 ECU of Standard Gross Margin.
Gross Margin = Gross Output-Direct Costs.
Family Farm Income = Gross Output less total net expenses. It represents the total return to the family labour, management and capital investment in the farm business.
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