Vol. 440 No. 6
9 Proinsias De Rossa asked the Minister for Agriculture, Food and Forestry if he has satisfied himself that the increase in farm income is being fairly shared between all sectors; the proposals, if any, he has to increase the income level of smaller farmers; and if he will make a statement on the matter.
86 Dr. McDaid asked the Minister for Agriculture, Food and Forestry the estimated total income per farm household for 1993 including off farm income.
87 Mr. Moynihan asked the Minister for Agriculture, Food and Forestry the total number of farmers in the country; the total number of full-time farmers in the country; the total number of part-time farmers with other employment; the total number of farmers with other sources of income; the estimated average farm household income; and the percentage of income from non-farm sources.
I propose to take Questions Nos. 9, 86 and 87 together.
The distribution of farm income across the agriculture sector reflects, in part, the relative profitability of differing farm enterprises. My Department operates a series of schemes designed to maintain farm incomes at viable levels, some of which also go in the direction of alleviating income disparities within the agricultural sector and I would draw attention to the following points.
Under CAP reform there has been a shift from market support measures towards direct income payments to farmers. These payments i.e. suckler cow premium, special beef premium, ewe premium, slaughter premium and extensification premium are designed to protect farmers income and to achieve a better balance in the distribution of income support across the farming community.
The bulk of the 0.6 per cent increase in the national milk qouta secured as part of the 1993-94 prices package will be distributed to small scale milk producers who require additional quota to improve the structure of their operations. In deciding on the allocation of the suckler cow quota from the national reserve a number of factors will be taken into account to ensure that farmers on low incomes and small scale milk producers are given priority.
Under the disadvantaged areas schemes, farmers in less favoured areas receive substantial headage payments on cattle, beef cows and sheep. Expenditure under this scheme in 1994 will exceed £125 million. A number of these schemes apply limits on the number of eligible animals of the amount of payment and so have the effect of focusing support towards smaller farmers. For example, cattle headage payments in disadvantaged areas are modulated to allow higher payments in respect of beef cows in more severely handicapped and less severaly handicapped areas. In more severely handicapped areas the modulation of cattle headage is as follows: first eight livestock units — £84 each if beef cow, £40 each if other cattle livestock units; next 22 livestock units — £84 each if beef cows, £33 each if other cattle livestock units; next ten livestock units — £84 each if beef cow, nil if other cattle livestock units; maximum payable is £3.360 on 40 beef cows. Only ten dairy cows may qualify for grants in a herd.
Farmers can avail of farm profile forms which are designed to allow them complete their tax returns without the need for professional assistance. This is of particular benefit to small farmers as it reduces the administrative costs associated with income tax payment.
Extra funding totalling £2 million has been allocated to Teagasc for the provision of a free advisory service to small farmers whose viability is at risk.
The accompanying measures under CAP reform and in particular the agri-environment and forestry schemes will offer additional opportunities for income generation in the coming years. The rural environment protection scheme for Ireland approved by Government earlier this year is expected to involve expenditure of nearly £230 million up to 1997.
The Operational Programme for Rural Development and rural development proposals contained in the National Plan 1994-99 include measures to encourage the production of alternative products to help supplement existing farm income levels.
Estimates of income per farm household are published in the Household Budget Survey which is conducted by the Central Statistics Office at seven yearly intervals. The most recent survey was published in 1987. For this reason, information is not available on the income of farm households in 1993. In 1987 farm household weekly income amounted to £242 and close on 50 per cent of this income was derived from non-farm sources.
According to the Central Statistics Office there were some 170,000 farms in the country in 1991 and the number of persons classified as principal occupation farmer in that same year was 112,900. This means that some 57,000 people who own farms are not principal occupation farmers.
Does the Minister not agree that the disparity between the better off farmer and the poorer farmer is considerable and has been exacerbated over the years by the CAP? The top 25 per cent are eight times better off than the bottom 25 per cent and this has not been addressed. Does the Minister set targets to narrow that disparity? In regard to the agri-environmental scheme and the Leader programme, which the Minister did not mention but referred to as rural development, is it not difficult for people who are poor already to avail of the benefits as they cannot provide the matching funds? Is this not one of the limitations of a fund which presumably is directed towards rural development and poorer rural areas? Does the Minister agree that if it is up to local communities and individuals to come up with matching funds, that prevents people from developing?
It is always difficult to ensure equity under various schemes, the vast bulk of which are based on headage of some kind so that the people with the largest number of livestock get the largest amount of subsidy or income. Nevertheless we are modulating headage grants so that those with smaller numbers get a larger income. I have had some criticism from the southern part of the country because people in the west and north-west got almost double what they got under the milk redistribution scheme. That was a consequence of trying to be helpful to the north-west and western part of the country. Under the Leader programme there is an acute problem for people in isolated areas, especially coastal areas; the larger their grant the greater trouble they are in because they must provide matching finance. What we are trying to do is to put money which was going into intervention for storage of produce into the farmers' pockets and into circulation in rural areas. For example, sheep farmers get about £125 million per annum which is a substantial subsidy, almost equivalent to the value of the sheep. I acknowledge the concerns that have been expressed. We are endeavouring to target the less well off for the greatest benefit under the schemes at our disposal.
I appreciate the lengthy answer the Minister has given. It is strange that he has not referred to either pig farmers or poultry farmers who have not received this massive increase that the Minister suggests is being paid to farmers this year. Pig farmers have had their worst period in years which has lasted since October 1992. The Minister has power to do many things. Will he, at this late stage, agree to withdraw the veterinary levy or at least reduce it to the same level as that in other European countries? Will the Minister also agree to take immediate steps to sort out the problems in the poultry industry? Poultry farmers are having to close their doors because of the reduction in their income? A note sent out to supermarkets by one operator in the poultry industry indicated they were proud to be able to say they have kept poultry prices at 1984 levels. Has any other sector had to live on a 1984 income? Although pigs and poultry are not covered by the CAP there are ways in which the Minister can help. I ask him to help them immediately.
I did not refer to pigs or poultry because they were not mentioned in any of the questions put down.
My question was refused.
There is a question on poultry which I will be glad to answer later. In regard to the pig sector, I am aware that despite the general well being of agriculture and farming, the pig sector had a very difficult year in 1993. At my request a number of measures were taken at European Community level to help the industry. Nevertheless, it is still suffering severe income problems.
What measures has the Minister taken?
I met members of the industry during the past few weeks to seek to improve their position. It is a difficult problem. For example, feedstuff is the main cost in milk production. I was requested by pig farmers to do something about the price of grain, but grain farmers were not happy about that as it would mean a loss of income. I do not want to improve the position of one sector by creating a difficulty for another. Nevertheless, in the next few days I hope to announce the introduction of a package for pig farmers to assist them in overcoming their difficulties. Pig farming works in cycles.
It is a long cycle.
I agree it has been a long one and that is why I am anxious to help that sector.
Eight years ago Teagasc produced figures to show that a farmer with 80 adjusted acres of land received 100 per cent of the then average industrial wage, but a similar farmer today with 80 adjusted acres receives approximately 65 per cent of the average industrial wage. Is the Minister aware Teagasc figures show that there are up to 10,000 farmers with incomes of less than £5,000 per annum. Is he further aware that the Conference of Major Religious Superiors in examining this problem some years ago pointed out that several thousand farmers here were living well below the poverty line and that poverty was more prevalent and growing more rapidly among small farmers than among any other economic group? Is the Minister aware of those figures and, if so, what is he doing to alter them?
I am familiar with the surveys carried out by Teagasc and of the position in areas such as the Beara Peninsula and the Mizen Head and Kilcrohane Peninsulas where farming is very difficult. We are introducing Leader programmes, agri-environment and agri-tourism schemes, operational programmes for rural development and so on in an effort to help in particular the less well off and small farmers. If it was not for the direct incomes from such programmes and schemes very few people would be living in those areas, except perhaps those who recently took up residence. Unemployment assistance and the various subsidies are keeping the structure of society in place in such areas. Many State, semi-State and local authority schemes provide incentives for professional people such as local engineers and Teagasc advisers to reside in those areas in an effort to help the local people. As far as possible we are trying to tilt the balance in favour of the small and less well off farmer.
I thank the Minister for targeting the pig industry. Will consideration be given to making intervention grain available to help pig farmers as that might resolve the problems associated with grain farmers?
Do not forget the chickens.
We may have roosters in Donegal, but we do not have many chickens.
The chickens are coming home to roost.
I am seeking to put a package of measures together to help pig farmers and I hope to be able to announce them in the next few days. I considered releasing grain from intervention, but we cannot do so at a price which would cause problems for grain producers. My aim is to put a package of measures together which will have an immediate impact as far as the producers are concerned.
When can we expect the announcement of that package?
I have a meeting arranged for next week with representatives of pig producers and I intend to have the package available then.
What plans has the Minister for the provision of ewe quotas for new entrants to sheep farming since 1991 to balance the income level?
Each member state is entitled to establish a reserve for ewes and suckler cows. We are processing that at present and targeting priority categories, including young farmers who did not receive a quota for 1991. However, the amount of reserve and the number of applications leave a relatively small quota to distribute. When I suggested reducing the quotas of large quota holders they reacted strongly because they had built up their quotas and felt they were entitled to retain them. In fact they suggested it might not be legal to do so. Nevertheless, I am endeavouring to increase the quota for small holders and to allocate a quota to well-trained young farmers for sheep and suckler cows.
I welcome the Minister's recognition of the problems in the pig industry. In advance of his announcement to representatives of pig farmers next week, will he consider introducing a scheme of low interest or subsidised loans from his Department to help pig producers who need to invest in their pig farms to improve production efficiency? Is he aware that the pig is now the only conventional farm animal for which there is not direct financial assistance from the European Union? Is the Minister considering any European initiatives to assist the pig industry?
I requested the European Community to take a number of measures in respect of special sale schemes to Eastern Europe and prior to Christmas they held three special sales. I accept that the pig does not come under any of the livestock schemes in respect of headage payments and so on, all changes are market led.
Is the Minister ruling out the inclusion of the pig in the headage schemes?
I am not, there are still a number of quadrupeds for which we might seek to extend the headage schemes, but extending those schemes means reducing them in areas which already receive them. I am considering those matters and will consider the Deputy's suggestion to make on-farm grant aid available to improve efficiency at farm level.
I contacted the financial institutions on low interest loans and I was informed that interest rates are relatively low at present. From their experience they did not view the pig industry as a problem sector. The co-ops and factories who purchase pigs experience difficulties with the pig producers. I inquired if low interest finance would be available for that sector. However, I understand from submissions by representatives of the industry that cash incentives per pig or per sow would be more effective than a medium or long term loan facility in resolving their acute cash flow problems. I will seek to obtain such incentives in the package.
