asked the Minister for Agriculture if he will outline the future prospects in Irish agriculture for producers of (a) grain; (b) beef; and (c) milk.
Written Answers. - Future Prospects in Agriculture.
29.
The development of Irish agriculture will be greatly influenced by the decisions taken by the European Community on the future of CAP. The general outlook in the years ahead is one of cautious but not completely restrictive prices based on a Community policy that gives an assurance of reasonable returns to producers and fair prices to consumers for a given level of production but which is less supportive above that level. Thus, there must be a continuous adaption at producer and processor level towards a more market-orientated operation, with particular regard to the development of new and higher quality products and a reduction in our dependence on intervention.
Some of the underlying economic factors are, of course, more favourable now than they were at the start of this decade. Our inflation rate is now down to the average Community level and seems likely to remain relatively low. Interest rates fell during 1985 and it is hoped that the recent rise will be short-lived. I believe that these factors, together with the substantial national and EC financed supports, will help Irish farmers to adjust to domestic and external realities and that there are sound long term prospects for progressive and development orientated farmers in all areas of our agriculture.
It should also be noted that producer prices here for cattle are only about 65 per cent of the guide price and those for milk only about 75 per cent of the target price. This shows that irrespective of price changes at EC level there is very considerable scope for improving farmers' returns for cattle and milk. This is a matter which rests largely in the hands of the industry itself.