Written Answers. - Agricultural Income.
Jim O'Keeffe
Ceist:
41
Mr. J. O'Keeffe
asked the
Minister for Agriculture and Food
his views on whether many farmers and their families are now suffering very serious hardship and a large number of them are living well below the poverty line; and the steps, if any, he proposes to deal with the crisis.
[5197/99]
The national anti-poverty strategy, published in 1997, estimated that in 1994, farm households accounted for 9 per cent of total households in poverty. In a further analysis of those at risk of poverty NAPS estimated that 20 per cent of farm households were at risk of being in poverty, compared to an 18 per cent risk for all households.
According to the latest CSO estimate, aggregate farm income in 1998 fell by 5 per cent to £1,855 million. This aggregate figure masks a much more serious impact on incomes for some sectors of agriculture. The disappointing performance in 1998 was mainly due to poor weather, and the collapse of the Russian market in the middle of the year.
As the weather and market difficulties developed during 1998, a range of actions were taken, including: direct payments to farmers were speeded up and special advances provided these payments reached a record level of £1,038 million, over 10 per cent up on the 1997 level, and now account for 56 per cent of farm income; changes in EU market support arrangements have been negotiated; and a fodder package, costing £21 million, was introduced before Christmas to help those worst affected by the weather.
Two weeks ago I announced a further £20 million in fodder aid for farmers on top of the £21 million paid out before Christmas on fodder related schemes, bringing the total Government contribution to £41 million. The scheme will benefit over 85,000 farmers in disadvantaged areas, and in addition a special hardship fund will be available to help other farmers in severe difficulty, subject to strict qualification criteria.
A revamped farm assist scheme has also been introduced, costing £43 million in a full year, to support low income farmers. In response to the difficulties now being experienced, it has been decided to bring forward the implementation of this scheme to April. In order to allow for the necessary preparatory work, including means testing, the first payments will issue in the first week in June. The scheme will benefit in the region of 13,400 farm families, including the 6,600 already participating in the existing scheme. I regard the farm assist scheme as a very important innovation and a clear expression of this Governments commitment to practical action on rural poverty.
I am satisfied that all possible steps are being taken to alleviate the problems currently faced by farming families.
