Phil Hogan
Ceist:10 Mr. Hogan asked the Minister for Agriculture and Food his plans to establish a commission on farm income; and if he will make a statement on the matter. [20675/02]
Written Answers. - Farm Incomes.
Farm incomes are the subject of ongoing monitoring and analysis. My Department estimates, based on CSO data, that average income per person employed in agriculture increased by 15% in 2001 and 12% in 2000. The national farm survey produced by Teagasc shows average family farm income increased by 17% in 2001 to €15,840. This follows an increase of 22% in 2000. In 2001, the average family farm income on a full-time farm was €30,959, net compared with the average industrial wage of €25,507, gross. EUROSTAT estimates that the average farm income per full-time worker equivalent, adjusted for inflation, increased by 7.8% in Ireland in 2001. This compares to an average increase of 3.3% in the EU as a whole.
The most recent household budget survey, for 1999-2000, showed that almost 60% of farm household income comes from non-farm sources, such as off-farm employment and social welfare. The increased availability of off-farm employment opportunities in rural areas has contributed to the viability of many farm households. I have taken a keen interest in farm household income and this year I established a steering group to assess up-to-date and comprehensive data in this area. My Department chairs the group with participation from the CSO, Teagasc and the ESRI. My Department also commissioned a report from the ESRI, based on the living in Ireland survey which provided additional information on total farm household income in 1994, 1997 and 1998. An ESRI project on farm household income and viability has been funded under my Department's research stimulus fund. The EU Commission is currently preparing a regulation which is replacing the living in Ireland survey with the EU survey on income and living conditions, which is being undertaken by the CSO and which will provide data on total farm household income on an annual basis.
My Department's public expenditure in 2001 amounted to €2.7 billion, a record €1,382 million of which was spent on direct payments to farmers, which accounted for 53% of aggregate farm income. Effective use has been made of mechanisms such as export refunds, intervention and internal aids to support prices and farm incomes at critical times. In the context of the mid-term review proposals I am requesting the EU Commission to carry out an impact analysis on the proposals, especially decoupling. In that regard I expect that the impact of the proposals on farm incomes should be taken into account.