Dáil Éireann díospóireacht -
Thursday, 29 Feb 1996

Vol. 462 No. 4

Written Answers. - Rural Depopulation.

Dan Wallace

Ceist:

36 Mr. D. Wallace asked the Minister for Agriculture, Food and Forestry the decrease in the number of active farming units during 1995; the steps, if any, he is taking to reverse the trend towards increasing rural depopulation and an associated increase in urban unemployment levels. [4657/96]

Minister for Agriculture, Food and Forestry (Mr. Yates)

Figures for the number of farms are not yet available for 1995. The CSO are expected to be in a position to provide this data in May 1996. There were 153,000 family farms in 1994 as compared with 158,900 in 1993, a decline of 5,900 or 3.7 per cent.

One of the key objectives of Irish agricultural policy is to maintain the maximum number of viable farm households. This policy aims both at maximising viability and maintaining the greatest possible number of farms. It must be acknowledged, however, that, in common with the pattern in all other developed countries, increased commercialisation and competition will mean reductions in farm numbers.

The agricultural measures under the Community Support Framework 1994-99 are making a significant contribution to the objective of maintaining the maximum number of viable farm households.

The Operational Programme for Agriculture, Rural Development and Forestry aims to improve the viability of existing farm households by encouraging structural improvement and rural development. It includes: on farm investment measures aimed at assisting farmers with development potential in traditional agricultural sectors to improve production efficiency and comply with environmental and health and safety standards; income maintenance — headage — for farmers with less development potential; encouragement for farmers and other rural dwellers to diversify into new areas with employment creation potential e.g. alternative farm enterprises, production of non-surplus products, agri-tourism and forestry.

Off-farm employment opportunities are also an essential element in the development of sustainable rural communities. The availability of local employment will help to reduce the migration of young people to urban areas in search of work. Under the Industry Operational Programme, the Sub-Programme for the Development of the Food Industry and the measure to encourage forestry processing will contribute significantly to rural job creation. Under the Leader Community Initiative, local community groups encourage both on farm and off farm employment creation schemes.

Payments under the FEOGA guarantee fund are also important in the maintenance of the maximum number of viable farm households. The accompanying measures to CAP reform comprise the following: the early retirement scheme for farmers, which complements the installation aid for young farmers under the OPARDF, will help to improve the age structure of our farming population and the size of Irish farms; the forestry measure encourages farm planting, thus providing an alternative source of income for farmers, and contributing to off farm rural employment creation in the downstream processing sector; the REP scheme supports farmers in their role as guardians of the rural environment, an essential prerequisite to sustainable rural development.

Premia payments make a very substantial contribution towards maintaining farmers' incomes. These payments help farmers who might otherwise abandon farming due to short-term income problems to remain in farming and adjust to a more competitive international environment.

As I pointed out recently when welcoming the record level of farm income last year, direct payments to farmers amounted to about £750 million in 1995 or over one third of farm income. Market support and other payments amounted to over £700 million. These transfers represent a major boost for rural incomes and play an important role in supporting the rural population. For the future development of our rural areas however it is essential that we should concentrate on improving efficiency and competitiveness in our agriculture, food and forestry industries.

In addition to the above policies, which are fully or partly funded by the European Union, the Government has structured the taxation and social welfare regimes to support farmers and rural communities.