Phil Hogan
Question:8 Mr. Hogan asked the Minister for Agriculture and Food the risk of poverty for farmers; and if he will make a statement on the matter. [14059/02]
Other Questions. - Farm Poverty.
Last year my Department commissioned the ESRI to examine the extent of poverty among farm, non-farm rural and urban households. The risk of poverty can be measured in terms of consistent poverty, which combines data on relative poverty with information on basic deprivation. Using 1998 data, the study shows that farmers had the lowest risk of consistent poverty of the three groups when measured at 40%, 50% or 60% of average income. At the 40% consistent poverty line, 1% of farm households were at risk compared to 4% for non-farm rural households and 4% for urban households.
Relative poverty is another way of measuring poverty. Relative poverty is measured as the percentage of households at risk of being below the 40%, 50% and 60% of average income. The results of the study showed that, in 1998, farm households had a substantially lower risk of relative poverty than the other household groups.
The Government's concern about poverty is evident from the commitment given in the revised National Anti-Poverty Strategy, published in February 2002. Its target is to reduce, and ideally eliminate, consistent poverty in Ireland. In addition, the farm assist scheme was introduced in April 1999 to support low income families.
The Minister will be aware weather conditions in recent months have caused more serious problems for farmers experiencing poverty. We have already discussed the milk price decreases and the problems in the beef sector. Is he aware there are further problems in intensive farming sectors, such as mushroom production? Mushrooms are being imported from Poland and being sold in the UK as Irish products. Has anything been done about that? A farmer telephoned me in desperation earlier because his income from mushroom production will reduce by €6,000 this year as a result of the decrease in prices paid by Monaghan Mushrooms to mushroom farmers? Is anything being done to prevent the illegal use of Irish labels in various agricultural sectors?
The Minister referred to the farm assist scheme, which is a fraud and an absolute farce. Many farmers cannot avail of the scheme because it is based on their income historically. If the scheme is to mean anything this year, it must take account the current weather conditions.
I am aware of the problems regarding labelling which have been experienced in mushroom production and food production generally. A number of different Departments have responsibility for labelling and I am examining that matter intensively and urgently to ensure a comprehensive system is introduced so that, at the very least, consumers will know precisely the source of the products they purchase.
The farm assist scheme was introduced a number of years ago following consultation with the farming organisations. A good number of farmers availed of the scheme but, nonetheless, there are problems. Some farmers find it more difficult to take up the scheme than the old farmers' dole.
There are fewer farmers in receipt of farm assist.
I have had discussions with the new Minister for Social and Family Affairs and we have agreed to examine the farm assist scheme to ascertain how it can be improved and modified and take into account current difficulties. I am sure the Deputy is praying for fine weather, as am I, because it is needed urgently given that serious damage is being done.
According to long range forecasts, the weather will not improve over the next few weeks. There are problems with crops that are in the ground and the planting season is being impacted upon. This means there will be a shortfall of many agricultural products later in the year, which will impact on the consumer. Has the Minister considered how he will address this difficulty?
I am aware of the dreadful weather conditions, which have impacted on a number of sectors. For example, we were fortunate that we had a mild winter because farmers cannot put their cattle out and must feed them silage. Reduced yield is a consequent problem because cattle cannot feed outdoors and the temperature at night is also low. I have asked departmental inspectors to continually monitor and report to me on the matter. I hope the weather will improve quickly because a fine week could mean a great deal. I watch the weather forecast with great interest each evening and, unfortunately, it holds out little prospect of improving in the short-term.
Deputy Crawford referred to the mushroom industry. A number of farmers in the midlands who attempted to diversify to generate more income for their households have suffered catastrophically in terms of promoting mushroom production. Mushroom units are being closed and removed. Has the Minister information regarding the problems in the mushroom industry?
When the Minister took up office in 1997 the Department used to publish statistics regarding farm incomes but it now refers to farm household incomes. Why is that so? Is it not the case that farm incomes reduced during his previous term in office and he cooked the books by using farm household incomes? Will he put a compensation package in place for farmers in the Shannon basin who have lost winter forage due to the flooding of the river? Since this Government took office after the general election, it has never stopped raining.
Could the payment of money due to farmers under the various schemes be speeded up? We are in a crisis situation and money is required.
The meteorological information available states that there will be radical climatic changes in the future. Is the Department or Teagasc studying the impact of climate change and the impact such change would have on farming practices?
I call the Minister for a brief final reply.
I am aware of the difficulty in the mushroom sector raised by Deputy Wall. Some time ago I asked for a report on the problems from the inspectorate division of the Department which deals with the commodity areas and it is under continuous review.
In reply to Deputy Naughten about farm household incomes, the Department does not compile statistics on household incomes; they are compiled by the CSO. Teagasc also do some study of farm incomes.
The calculations change though.
The contribution of non-farming activity to household income is increasing all the time and has now gone up to about 60%. Any plan for the future will need to take into account the total household income rather than the income from farming alone and I assume that is the reason the CSO and other agencies use the total household income.
Deputy Hayes made a good point about premia and headage and it is important that they are paid. I have asked my officials to ensure that all moneys due to farmers will be paid. Last year because of foot and mouth and other difficulties, the advance payment of 60% was increased to 80% in order to help farmers and we will do that this year also.
Deputy Timmins raised the question of climatic change. It is a huge problem and anecdotal evidence suggests that there is a change in our climate. Teagasc is the advisory body to the Department and is keeping us informed of the situation. Teagasc research has resulted in the modification of various crop varieties to allow them produce a better yield in Ireland. A livestock breeding programme also takes account of climatic matters.
We now proceed to Question No. 9. Question No. 8 is not to be taken as a precedent.
Thank you, Leas-Cheann Comhairle.