Dáil Éireann debate -
Wednesday, 16 Dec 1998

Vol. 498 No. 5

Written Answers. - Farm Incomes.

Sean Fleming

Question:

41 Mr. Fleming asked the Minister for Agriculture and Food his views on the income levels of farmers in recent years, in 1998 and his projections for income for all categories of farmers in 1999; and if he will make a statement on the matter. [27686/98]

Jim O'Keeffe

Question:

50 Mr. J. O'Keeffe asked the Minister for Agriculture and Food his views on whether there is adequate income support for farmers; and if he will make a statement on the matter. [27553/98]

Bernard J. Durkan

Question:

59 Mr. Durkan asked the Minister for Agriculture and Food the steps, if any, he has taken at EU level to bring about an improvement in the farm incomes with particular reference to the need for the adoption of policies which will ensure the maximum utilisation of markets, the highest possible production and hygiene standards; and if he will make a statement on the matter. [27851/98]

Minister for Agriculture and Food (Mr. Walsh)

I propose to take Questions Nos. 41, 50 and 59 together.

I am circulating a table which sets out aggregate and average farm income for each of the years 1992 to 1998, based on data provided by the CSO and Teagasc. There was a sustained growth both in aggregate and average farm income from 1992 to 1996. The CSO figures show that aggregate income grew by a total of 32 per cent, while average income per farm grew by almost 50 per cent over the period. Teagasc's national farm survey records a growth in average income of 64 per cent.

Unfortunately, following these growth years, there was a decline of 6 per cent in aggregate farm income in 1997. However, Teagasc's national farm survey recorded a lower drop of 1 per cent in average income.

According to advance figures for 1998 published last week by the Central Statistics Office, aggregate income is estimated to have declined by 5.6 per cent in 1998. There are no figures yet for average farm income.

I have taken a range of measures this year to alleviate the income problems, which emanate mainly from the unfavourable weather and the collapse of the Russian market.

Direct income payments this year are estimated to reach a record level of well over £1 billion, or 56 per cent of farm income, as a result of speeding up of payments and increased advances, as well as the special fodder package.

Other key actions which I have taken include 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. In particular, the new farm assist scheme will provide a valuable safety net for the most vulnerable farming families.

The position in relation to incomes in 1999 is unclear at this stage. As we have seen this year, factors outside our control, such as the weather and third country markets, can have a major influence on the outcome. For my part, I will be ensuring that every assistance possible is provided and that direct payments, which are now such an important factor in farm incomes, are made as speedily as possible.

Aggregate and Average Farm Income

Year	CSO Data	Teagasc Data(National Farm Survey)
	Aggregate Income a	%Change	Average Incomeb	%Change	Average Incomec	%Change
	£m		£		£
1992	1,805.5	+16.7%	11,166	+23%	7,172	+20%
1993	1,846.1	+2.2%	11,574	+4%	8,075	+13%
1994	1,919.1	+4.0%	12,510	+8%	9,063	+12%
1995	2,044.9	+6.6%	13,331	+7%	9,644	+6%
1996	2,081.1	+1.8%	13,930	+4%	10,920	+13%
1997*	1,952.9	-6.2%	n.a.	n.a.	10,798	-1%
1998**	1,843.7	-5.6%	n.a.	n.a.	n.a.	n.a.

* Farm numbers not available.

** Advance estimate only.

a Aggregate Income = Total income from self-employment and other trading income.

b Average Income = Aggregate income divided by number of farms.

c Average income as recorded by Teagasc's National Farm Survey.