Jim O'Keeffe
Ceist:19 Mr. J. O'Keeffe asked the Minister for Agriculture and Food his views on whether many farmers are very badly off at the moment due to poor prices; and the proposals, if any, he has to alleviate the situation. [16526/99]
Written Answers. - Farm Incomes.
Arising out of the poor weather conditions and market difficulties which farmers experienced in 1998, I initiated a range of measures to improve their situation. Included in these were: increases in export refunds for beef and pigmeat; introducing aids to private storage for sheep and pigmeat; improving access to intervention for heavier cattle; increasing the rate of advance payment of suckler cow and special beef premia; speeding up payments to farmers; approval of additional shipping capacity for export of livestock; a special fodder package of over £40 million.
In addition, a farm assist scheme has been put in place for farmers with particular income difficulties.
While cattle prices are down this year on 1998 levels, steer prices have increased by 10 per cent in recent months and are now within 4 per cent of the levels recorded this time last year. Given the expected decline in beef production in the EU this year, I am confident that cattle prices should remain close to or above 1998 levels for the remainder of the year.
After a slow start lamb prices this year have been generally satisfactory with lamb sales up 13 per cent on last year's levels. Following unusually high prices for May prices are now at the more usual level of previous years. Pigmeat prices have increased by 9 per cent over 1998 levels and there are signs of a recovery from the difficulties which the sector experienced.
In addition, direct payments to farmers reached a record level in 1998 with total payments of £1,038 million, which means that the average direct income per farmer was £7,200.
Therefore, that is strong evidence to suggest that an income recovery is well under way.