Written Answers. - Farm Incomes.
Michael Noonan
Question:
17
Mr. Noonan
asked the
Minister for Agriculture and Food
his views on whether the farming organisations were exaggerating the loss of income suffered by certain farmers; if he has ruled out any additional income support for farming families; and if he will make a statement on the matter.
[23702/98]
The Government, and I as Minister, have always acknowledged that the past few months have been difficult for many Irish farmers, and I have concentrated on taking practical steps towards alleviating those difficulties.
The CSO's latest estimate for 1998, released last Friday, shows a decline in aggregate farm income of 5.6 per cent. This result is disappointing, coming after last year's decline, and in view of the very good income performance in the previous five years. The aggregate income figure masks different performances in different sectors. 1998 was a relatively good year for dairy farmers. On the other hand, cattle, sheep and pig farmers were hit by substantial difficulties in the second half of the year. The two primary causes were the unfavourable weather and the collapse of the Russian meat market, the extent and nature of which was not anticipated. The measure announced in the recent budget, in the form of a new farm assist income support scheme, is designed to assist farmers with income difficulties.
I have taken a wide range of measures to alleviate the serious problems faced by these sectors, and to provide additional income support for farm families.
Total direct income payments this year will amount to over one billion pounds. This record figure reflects speeding up of payments by my Department; an increased advance in suckler cow and special beef premium payments from 60 per cent to 80 per cent; and a special package of almost £20 million including £10 million in fodder payments, £6 million for mountain ewe de-stocking, and almost £3 million in sheep headage top-up.
Other key actions which I have taken included winning substantial increases in export refunds for beef and pigmeat; getting private storage schemes for sheepmeat and pigmeat; and obtaining increased access to intervention for heavier cattle.
The 1999 budget contains several measures which will help to support farm families over the next year.
The new farm assist scheme will have a changed basis for assessing eligibility for payment. As a result, many farm families who do not currently qualify for assistance will now qualify; and many families who already qualify will be eligible for higher rates of payment. The number of farm families benefiting from the scheme is expected to double, from almost 7,000 to almost 14,000.
Other budget measures which will support farm incomes include a 21 per cent increase in funding for REPS; increased Exchequer funding for headage; the reopening of the farm investment and installation aid schemes; an increase in the VAT refund and extension of the special stock relief rates.
I am confident that this package of measures will provide valuable income support for the most vulnerable farming groups.
Brendan Howlin
Question:
18
Mr. Howlin
asked the
Minister for Agriculture and Food
the radical changes, if any, considered by his Department to the system of income support for farmers in response to Agenda 2000; if the policy will be changed to include as a social objective the maintenance of the maximum number of farm families; and if he will make a statement on the matter.
[27868/98]
Supporting the maximum number of family farms is a key policy priority for this Government, as is clearly indicated in An Action Programme for the Millennium and in the strategy statement of my Department.
Action in support of this objective in 1998 includes well over one thousand million pounds in direct income payments to farmers. That is 56 per cent of estimated farm income, or 62 per cent after allowing for interest payments. This is a 9 per cent increase in payments over the level in 1997, which was itself a record. These payments are a very practical expression of public support for farm families and are vital to the viability of many farmers.
In addition this Government has responded to the specific needs of low income farmers by making provision in the recent budget for the new farm assist scheme. This initiative is targeted at those farm families with children who are in greatest risk of poverty and will provide further practical support to maintain farm families on the land.
In relation to Agenda 2000, negotiations are still continuing and are now entering a crucial phase with the objective of reaching agreement by the end of March. I have made Ireland's position on the current proposals very clear and I will continue to seek changes in the final package to protect the livelihood of Irish farmers, and to ensure the best possible framework for the development of Irish agriculture.
