Dáil Éireann díospóireacht -
Tuesday, 9 Nov 1999

Vol. 510 No. 3

Written Answers. - Farm Incomes.

Michael D. Higgins

Ceist:

36 Mr. M. Higgins asked the Minister for Agriculture, Food and Rural Development the steps, if any, being taken by his Department to facilitate an increase of income on small and medium sized farms, having regard to the figures published by Teagasc in July 1999 showing that 80,000 farms earn under £10,000 per annum; and if he will make a statement on the matter. [22419/99]

Minister for Agriculture, Food and Rural Development (Mr. Walsh)

The Teagasc figures referred to relate to income from farming activities only. When discussing farm incomes it is important to note that, on average, approximately half of farm household income now comes from farming activities. The dependence of farm households on farming income has reduced in recent years as off-farm employment has increased. This trend is likely to continue in the future, and is welcome in the sense that it provides a valuable alternative source of income for farm families.

The main source of information on total farm household income is the household budget survey. The results of the survey in 1994/95, which are the latest published results, show that average farm household income compared reasonably well with those of urban households and exceeded that of other rural households.

Figures produced for the national anti-poverty strategy show that the risk of farm households being in poverty has in fact decreased substantially in recent years. In 1997, 13 per cent of farm households were at risk of poverty, compared to 20 per cent in 1994, and 33 per cent in 1987. This trend is very welcome. Farmers in fact now have a much lower risk of being in poverty than the population in general.

In order to assist particularly vulnerable farm households, the Government introduced the new farm assist scheme in the 1999 budget. To date, more than 6,800 farmers receive payments under the new scheme and decisions are pending in more than 400 further cases. More than 1,000 other farmers continue to receive payments under the previous smallholders assistance scheme and these claimants will be transferred, where appropriate, to the new scheme over the coming months. I am confident this scheme will significantly improve the incomes of farm families most in need.