The last year for which there are complete figures in respect of direct income payments is 1996 and, in that year, the total amount of such payments was £911.4 million. This represented almost 44 per cent of a total of £2,092.2 million in income from self-employment and other trading income, as measured by the CSO for that year. On the basis of the CSO's estimate that there were 149,500 farms in 1996, the average payment per farm was £6,096.
It is not possible to apply the CSO farm size data to its estimate of income as the CSO income figures relate to aggregate farm income only. However, Teagasc's national farm survey for 1996 found average direct payments of £6,471 among all farms surveyed, while the 14 per cent of farms over 50 hectares received an average payment of £15,107.
A recent study, based on Teagasc's 1995 national farm survey, was carried out by Trinity College Dublin on the distribution of direct income payments in Irish agriculture. The findings of this study were that, in 1995, 43 per cent of total direct payments were made to the 14 per cent of farms with an average farm size greater than 50 hectares.
It must be acknowledged that the nature of the CAP reform payments is such that farmers with more livestock or arable area will receive more payments. However, I have made efforts to target other payments towards lower income farmers.
Teagasc's national farm survey has identified headage as the payment most targeted at low income farmers in disadvantaged areas. I announced recently that, from 1998 onwards, I intend to introduce a ceiling of £3,024 on headage payments. This should further improve the targeting of the scheme.
In addition, I will be starting discussions with the farming organisations very soon, with the aim of drawing up a new and tightly focused scheme of installation aid for young farmers.
