Vol. 478 No. 7
230 Miss Coughlan asked the Minister for Agriculture, Food and Forestry if he will guarantee that ewe premia will not be reduced; the proposals, if any, he has to ensure the incomes of sheep farmers in disadvantaged areas; and if he will make a statement on the matter. [12103/97]
The level of the ewe premium in any years is determined by the average prices paid in the EU market for that year. EU and Irish market prices for lamb have been at record levels so far this year, largely because of buoyant consumer demand. Since the premium is designed to compensate producers for low prices, it is inevitable that the premium will be lower than market prices are good. However, overall returns to producers from the market and the premium this year should not fall below 1996 levels.
Sheep farmers in disadvantaged areas will continue to qualify for payment of the rural world premium if at least 50 per cent of their holding is located in a disadvantaged area and if that area is used for sheep production.
