Vol. 567 No. 3
49 Mr. Sherlock asked the Minister for Agriculture and Food his assessment of the way in which the proposed changes to the Common Agricultural Policy will impact on farm incomes; his views on the recent Teagasc-FAPRI Ireland report on this matter; and if he will make a statement on the matter. [13986/03]
I requested FAPRI Ireland to look at the effects of the full mid-term review – MTR – proposals, including not just decoupling, but also degression, modulation and further reforms of the dairy and cereals sectors and to take account of the proposals submitted to World Trade Organisation by the Commission in relation to negotiations on the current world trade round. This independent study confirmed that the MTR and WTO proposals have important implications for Ireland. The analysis is provided at aggregate and farm levels.
In summary FAPRI Ireland found that the Commissions MTR and WTO proposals would result in aggregate farm income at the end of the study period – 2012 – being around 8% higher than would be the case if there were no policy change or changes in the trading environment. There would be a reduction in the output value of agriculture products, but this would be offset by a reduction in input costs, resulting from lower animal numbers and more extensive production.
There are important assumptions attached to the study, as with all economic studies they clearly rely upon the assumptions made, and FAPRI Ireland has clearly outlined the assumptions used.
The FAPRI Ireland study is being referred to a number of consultative groups which I set up for each sector to allow for full consideration of the report and its results.Part-time farmers are also eligible the same direct payment as full-time farmers and have benefited from the increased payments under Agenda 2000. Similarly, other market support measures such as intervention and export refunds which help maintain output prices benefit both full and part-time farmers.
