Vol. 514 No. 6
91 Mr. M. Kitt asked the Minister for Agriculture, Food and Rural Development the trend in family farm household incomes during the 1990s; his views on the trend in incomes over the coming year; and if he will make a statement on the matter. [4971/00]
Aggregate farm income, as measured by the CSO, underwent con siderable fluctuation throughout the 1990s. Between 1990 and 1996, aggregate income increased by almost 23%. However, aggregate income has declined by almost 22% since 1996, as a result of the impact of the BSE crisis, poor weather and the collapse of the Russian economy.
Average family farm income as measured by Teagasc's national farm survey has been much more positive. Family farm income was estimated at £6,682 in 1990 and this had grown to £11,042 in 1998, the latest year for which data is available. This represents an increase in average family farm income of 65% over the period 1990 to 1998.
It is important to note that only around half of farm household income now derives from farming. The household budget survey of 1994-95, the last year in which a survey was conducte, shows that farm household income, including income from both on-farm and off-farm sources, was similar to that of urban households. The results also showed that only 53% of farm household income came from farming, with the balance deriving from other employment 31%, State transfers 12% and other sources 4%. Given the increasing trend in part-time farming since the survey, it seems likely that the contribution of income derived from off-farm sources to total household income is now more than 50%.
It should also be pointed out that farmers' income, as with the rest of the community, benefited substantially throughout the 1990s as a result of reducing inflation and lower interest rates.
It is too early to provide an accurate estimate of the likely outturn in farm income for 2000. I can say, however, that all the indications are positive and that an increase in farm income in 2000 is likely. A number of independent economic commentators have already forecast a substantial increase in farm income for this year.
