Dáil Éireann debate -
Thursday, 9 Dec 1999

Vol. 512 No. 5

Written Answers. - Rural Poverty.

Jim O'Keeffe

Question:

33 Mr. J. O'Keeffe asked the Minister for Agriculture, Food and Rural Development his views on whether a substantial number of the estimated 145,000 farmers are not making a viable return from their farming activities in order to reasonably and adequately provide for themselves, their spouses and families; the figures, if any, he has of the numbers who fit into this category; and the proposals, if any, he has whereby their standard of living could be improved. [26331/99]

Minister for Agriculture, Food and Rural Development (Mr. Walsh)

The economic viability of farming activities and the adequate provision for farm families, in terms of total income, are increasingly two separate questions, because of the rising level of income to farm families from off-farm sources.

More than 44,000 farmers are estimated by Teagasc researchers to be commercially viable, meaning that the family farm income is sufficient to remunerate the family labour on the farm, plus a 5% return for non-fixed assets. However, a much larger number of farm families than this are achieving a reasonable income.

An increasing number of farm families are supplementing their farm income with off-farm earnings and find this the best way to provide adequately for themselves and their families. Teagasc's national farm survey gives an estimate of the numbers of farmers in some form of off-farm employment. In 1998 almost 30% of farm holders had off farm employment as an additional source of income. Either the farmer or the spouse is engaged in off-farm work on 44% of farms.

The latest available household budget survey, for 1994-95, showed that only half of farm household income derived from farming activities, with the balance coming from off-farm employment and State transfers. As the economy continues to grow, and to provide new job opportunities in rural areas, off-farm employment is likely to make an increasing contribution to total household income for many farm families.

The success of these trends can be seen in the ESRI's recent report on poverty trends, which showed that farm households now have a lower risk of being in poverty than other households. The percentage of farm households in poverty declined from 33% in 1987 to 13% in 1997. This means that in 1997, only 13% of farm households had an income of less than half the national average, compared to 22% of all households.