Ms Alice Doyle:

Our committee is represented by our director of policy, Mr. Tadhg Buckley, Ms Claire McGlynn, and me, the deputy president. I welcome the invitation to address the committee today.

The farm assist scheme plays a crucial role in supporting the livelihoods and well-being of low-income farmers in Ireland. It helps to ensure all farmers have the opportunity to participate in and benefit from agricultural activities, contributing to the sustainable rural development and well-being of rural communities. The farm assist scheme has more often been seen to benefit the western seaboard, but it has become more important for the eastern seaboard in recent times because of falling incomes and increasing inflation. According to Teagasc’s national farm survey of 2022, only 43% of farmers are deemed viable and 25% are vulnerable. For those who are deemed unviable and are struggling to make ends meet amid fluctuating market conditions, unpredictable weather patterns and rising input costs, the farm assist payment provides essential support that extends far beyond mere financial aid.

The farm assist scheme is a means-tested social welfare scheme. Applicants for the farm assist scheme are typically required to provide information about their income from farming activities, off-farm employment, self-employment, rental income and other sources. Farmers may also need to disclose details about their assets such as land, livestock, machinery, savings, investments and property ownership. If the applicant has a spouse or partner, their income is also included. Farming income is assessed as gross income over the past 12 months. Assessing farmers’ income as gross income is a major barrier to farmers being eligible for the farm assist scheme. Assessing the farm assist scheme based on net income provides a more accurate and comprehensive assessment of farmers’ financial needs, profitability and viability. By accounting for business expenses and aligning with taxation principles, net income assessment ensures fairness, equity and effectiveness in targeting support to farmers facing economic challenges and promoting the sustainability of agriculture in rural communities.

Farm income is often seasonal and subject to fluctuations due to factors such as weather conditions, market prices and input costs. Therefore, means-testing may not accurately reflect the cyclical nature of farm income, leading to inconsistencies in eligibility and benefit levels for farmers whose incomes vary throughout the year. Currently, recipients on the farm assist scheme are reviewed yearly, and we suggest this should be increased to a minimum of three-year intervals. Currently, recipients on the farm assist scheme do not receive credited social insurance contributions. This differs from those who are on jobseeker’s allowance and who qualify for social insurance contributions. This should be rectified and recipients on the farm assist scheme must receive social insurance contributions for pension purposes. Strengthening pension provisions for farm assist scheme recipients contributes to the sustainability and resilience of rural communities.

The farm assist scheme and the rural social scheme go hand in hand. The rural social scheme plays a crucial role in supporting rural communities and addressing social and economic challenges in Ireland. The rural social scheme aims to address the provision of certain services of benefit to rural communities by harnessing skills and talents available among our low-income farmers and fisherpersons while continuing to provide income support where eligible persons are in receipt of specified and primarily long-term social welfare payments.

The rural social scheme is considered an income support initiative to provide part-time employment opportunities in the community and voluntary organisations. Communities, in turn, benefit from the skills and talents of local farmers and fishermen as their involvement in local projects and initiatives contributes to the overall well-being of the individual and the development of rural areas.

In recent years, there has been a decline in participation in the rural social scheme. From 2016 to 2019, the rural social scheme had more than 3,000 participants, but since then, participation has been reducing. The reduction in the number of participants in the farm assist scheme is likely to be related to the changes in the means-testing in the budget reforms of 2012 and 2013, which saw the percentage of farm income and off-farm self-employment income which is assessed increased from 70% to 85% and then to 100%. We acknowledge that in 2014, the reintroduction of the 70% assessment came back into effect, but the number of participants on the scheme continued to fall and has not increased.

Together, the farm assist scheme and the rural social scheme play crucial roles in fostering social inclusion, economic sustainability and personal and community resilience in rural Ireland. By supporting farmers, fishers and rural residents who are facing financial hardship and employment challenges, these programmes contribute to the viability and well-being of rural communities, ensuring all residents have the opportunity to thrive and live in their local areas. Despite this, the number of participants on the farm assist scheme has reduced significantly, which points to the need for change. A full reassessment of the means-testing requirement is needed to ensure a fairer approach for people to access the farm assist scheme and help increase the numbers participating in such an important scheme. The requirement and appetite for change in the schemes are apparent and it is important to continue to provide financial security, social inclusion and service provision to the communities into the future. I thank the Chair and we will be happy to engage with any questions and suggestions going forward.