A total amount of £130 million is expected to be paid to sheep producers in EU premia and headage payments in 1999.
According to the Teagasc farm management survey, EU direct payments in 1998 accounted for 94 per cent of the family farm income on holdings where sheep production was the main enterprise. These figures highlight the need for sheep producers to obtain a higher proportion of their income from the market. The report of the sheep forum, which was presented to me recently, outlined a number of recommendations aimed at securing higher returns from the market. My Department will be working closely with the industry and State agencies to ensure the implementation of these recommendations.