Vol. 553 No. 4
2 Mr. Penrose asked the Minister for Agriculture and Food if, in view of the significant crisis in farm incomes, he will consider the establishment of a commission on farm incomes to undertake an indepth study of current income levels and to make appropriate recommendations as to the way in which income levels might be improved; and if he will make a statement on the matter. [13962/02]
Recent data indicate that aggregate farm income has recovered following a number of difficult years in the late 1990s. Aggregate farm income rose by 5.8% in 2001 with an increase of 7.5% being recorded in 2000. Indeed my Department estimates, based on the Central Statistics Office quarterly national household survey, that the average income per person employed in agriculture increased by 16% in 2001 and 10% in 2000.
The latest household budget survey for 1999-2000 shows that almost 60% of farm household income now comes from non-farm sources, including off-farm employment, social welfare and other income. The increased availability of off-farm employment opportunities in rural areas has contributed to the future viability of many farm families. Because of the increasing importance of non-farm income to farm households, I have established a steering group on farm household income to assess up-to-date and comprehensive data in this area. My Department chairs this group, with participation from the CSO, Teagasc and the ESRI.
Farm incomes are of central concern to me. My Department operates a range of measures including market supports and direct payments under the Common Agricultural Policy. Direct payments amount to €1.4 billion annually and account for 56% of aggregate farm income. The Agri-food 2010 plan of action sets out the Government's vision for the future of the sector. The plan of action envisages a dynamic agri-food sector in 2010 offering farm families attractive and sustainable livelihood options, thus maintaining the maximum number of families on the land.
I am aware that low income remains a difficulty for some farm families. The revised national anti-poverty strategy launched by the Government in February 2002 includes a specific focus on addressing rural poverty and disadvantage. Its objective is to tackle social exclusion in rural areas in a comprehensive and sustained manner by ensuring the provision of an adequate income, through employment and income support, access to adequate services and infrastructure on a timely basis and co-ordination of responses and empowerment of local people and communities.
Additional informationI am satisfied that the necessary policy framework, underpinned by both national and EU funding, is in place, together with appropriate monitoring and review arrangements, to ensure viability of the maximum number of farm households. I therefore do not consider that the establishment of a commission on farm income is required.
The Minister is welcome back. He certainly is the epitome of ministerial longevity and has won all the shoot-outs at the OK Corral. In any event, today is my last day to shadow the Minister.
Does the Minister agree that farm incomes are under pressure in both the beef and milk sectors and that the price of these commodities has fallen in real terms while farm costs have continued to rise? Would he also agree that between 1996 and 2002 farm incomes declined by approximately 4% in real terms? This is inconsistent with the commitment given in the Programme for Prosperity and Fairness that farm incomes would increase living standards in line with the norm in our economy. Does the Minister agree that this has not happened? Will he also agree that there are a number of factors internally that can be handled at national level but that a number of factors require international examination?
Does the Minister not agree that the ICMSA proposal was fair and accurate? It proposed that the Minister would establish a commission on farm income which would meet with the relevant bodies and examine why average farm income in 2002 was €15,457 as opposed to the average industrial wage of €28,909. Could that differential be examined? Does the Minister not agree that a commission on farm income would ensure that those problems would be addressed in a fair, objective and impartial manner? The commission could report in six months. It would be extremely helpful.
I regret that Deputy Penrose will no longer be able to ask me his usual incisive and searching questions.
Deputy Wall is taking over the brief.
A good Kildare man. I welcome him to that portfolio. Farm incomes are extremely diverse, depending on the size of the holding and the sector in which farmers operate. There is a substantial income, for example, in dairying. The national farm income survey carried out by Teagasc shows the considerable variation in farm income by system of farming, from an average of €27,922 in dairying to an average of only €7,644 in some cattle rearing systems. There is a big gap between the systems.
I take the Deputy's point about looking at the difficulties in a number of farming areas. I have established a steering group on farm household income which comprises senior departmental personnel, the CSO, Teagasc and the ESRI. I hope it will make a positive contribution to ensuring that young people will look on farming as an attractive option.
