Martin Ferris (Kerry North-West Limerick, Sinn Fein) | Oireachtas source

That is a position which my party is happy to support. Indeed, it is one we pioneered. Since I was elected to the House in 2002, Sinn Féin has consistently stated that the single farm payment should be capped. We have also called for the payment to be changed in order that the maximum limit would be set at €100,000. I would like to hear the opinions of the members of all other parties in the House in respect of this matter. I am of the view that setting a maximum upper limit should be the basis for a common approach on the part of the Minister and his counterpart in the Six Counties, Ms Michelle O'Neill, MLA, during the negotiations.

As I understand it, the European Commission's current proposal for a flat-rate, area-based payment would lead to a substantial increase of over 80% for most farmers but also to a 33% cut for those on the higher rates. Obviously, this proposal will be the subject of a process of negotiation and compromise. I am of the view that there is a strong mood for radical reform that would give rise to a redistribution away from the huge beneficiaries - most of whom are not active farmers in the instance - and towards active small to medium and even relatively large producers. An example of the imbalance that exists in respect of the single farm payment as it currently stands is that in 2007, just over 2,000 of the largest beneficiaries received more than €150 million between them. At the lower end, more than 55,000 farmers received payments of less than €5,000. Details relating to individual payments are no longer available. It is clear, however, from the 2008 list of those who received payments of €100,000, that most of the really large payments went to businesses rather than active farmers. I am glad there is now all-party agreement on the need to end those payments to businesses. I would like all parties in the House to commit themselves to an upper limit of €100,000.

If an upper limit such as that to which I refer were put in place, active farmers would have access to the funds within the national envelope which could be redistributed. In my opinion, an area-based payment has merit and there are some interesting proposals in this regard which are worthy of closer examination. At present, the average per hectare single farm payment for Irish farmers is €275. There are, however, farmers at the upper end whose per hectare payments are much greater than this. At the lower end, there are farmers whose payments, when averaged over the total area of their holdings, are much lower. A great deal of focus, both within and outside farming, has been placed on those who draw down large payments. The reality is, however, that the majority of farmers are on relatively small payments. This reflects the basis on which decoupled payments were introduced as part of the 2003 reform of CAP.

According to figures supplied to me by the Minister two weeks ago, more than 52,000 farmers drew down single farm payments of less than €5,000 in 2011. Not only is this sum very small, it also reflects an overall low income level for such farm households. Such households are struggling, and in many instances failing, to cope with debt and the cost of living. It is, therefore, disingenuous for some observers to claim that all farmers are living the high life on EU handouts. The average farm income in 2011 was just €21,500. That is more than €10,000 lower than the average industrial wage. Even this does not reflect the true picture for farmers at the lower end, including most of those on single farm payments of less than €5,000.

There is also a certain level of dishonesty on the part of some who are sympathetic to farmers. The statistics on average farm incomes are often highlighted, but no differentiation is made between the small number of extremely high earners and the large number of low earners. Nor does there appear to be much recognition of the need to create a fairer system in the context of determining the rate of single farm payments. I am of the view, therefore, that there would be merit in introducing an element of area-based payments to ensure a certain level of income security for small family farms. There are some interesting proposals in respect of this matter within the farming community and I hope these will be taken on board as part of the debate on the proposed reforms.

As stated, the Minister has our full support in his endeavours to obtain the best possible deal for the country. However, there will be a need to consider the adoption of a more equitable approach. In that context, we must examine the position of small income farmers who are struggling to survive and whose continued existence within their communities must be guaranteed. There is a need to maintain farming communities and to keep as many people as possible on the land in order that we might retain a vibrant society within rural areas. If we lose that vibrant society, we will lose our souls. That is why consideration must be given to everything as we move forward.

I commend the IFA on organising a peaceful, dignified protest today during which 20,000 people marched through the streets of Dublin. I am of the view that this protest was in support of the Minister in the context of the forthcoming negotiations in Brussels. In addition, those protesting were informing those of us in this House that we should be working together rather than bickering across the floor and shouting each other down. People want us to work together for the greater common good and for our farming and rural communities. We must be seen to do what is necessary to create the type of vibrant society that is necessary.

This morning, Kerry Group announced that 900 jobs will be created in Kildare. I would prefer it if those jobs were going to be created in Kerry. As a legislator, however, I must see the national picture. An influx of 900 jobs into the economy is a major development and will be of tremendous benefit to everyone concerned. I hope what is envisaged will have a knock-on effect on rural communities.

I advise the Minister to go to Brussels. He said he will not return unless he can stand up and defend a budget that will look after our farming community. He has our support in doing that and I know that by working together we can deliver something for our communities and for our rural communities in particular in order to give them a viable economy in the future.

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