Vol. 524 No. 6
97 Mr. O'Shea asked the Minister for Agriculture, Food and Rural Development his views on whether the current inflation rate of 6.2% is adversely affecting Irish farm incomes; and if he will make a statement on the matter. [23401/00]
The Government is concerned about the impact inflation could have on our economic performance, and the Minister for Finance has indicated that tackling inflation is a key priority for the forthcoming budget. While the agricultural sector is affected by inflation along with the rest of the community, the impact on agricultural income is no greater than for many other sectors.
In relation to farm incomes, livestock prices in 2000 are running at levels significantly higher than those obtained last year. In addition, it appears that the crop sector is also likely to fare well, while producers in the dairy sector should also see their incomes increase. The increases in direct payments to farmers, agreed under Agenda 2000, will also impact positively on farm incomes this year, with payments rising to approximately £1 billion.
