Dáil Éireann Debate, Thursday - 18 May 2006
58 Mr. Eamon Ryan asked the Minister for Agriculture and Food her plans to ensure farm gate prices are sufficient to enable people to earn a living from farming; and her views on whether farmers will continue to leave farming unless this lack of economic viability is addressed. [18760/06]
View answerThe issue of farm incomes and viability is dependant on a number of factors. It should be noted that 82% of net aggregate farm income earned by farmers in 2005 was derived from direct payments; these payments totalled €2.3 billion.
Reform of the Common Agriculture Policy since the early 1990's has emphasised supporting farm income through direct payments and reducing market supports (such as intervention, aid for private storage, and export subsidies) which impact on farm gate prices. This policy, which was enhanced in the Agenda 2000 reform of the CAP, helped to achieve better market balance for most commodities while farm incomes were supported by direct payments.
With the implementation of decoupling, farmers are now supported by the substantial income platform of the Single Farm Payment and can base their production decisions on the requirements of the consumer and the returns obtained from the market. This provides the best basis for facilitating the viability of farming households.
