Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

First, I will clarify the statistics regarding farm income. The Deputy is correct. The average farm income last year, as estimated, is directly related to the fact that in the dairy sector the average income has fallen from nearly €68,000 in 2014, which is a very good income for an average farm income, to €47,000. However, there has been better news in all of the other sectors. There has been an increase in the cattle rearing, other cattle, sheep and tillage sectors. Incomes were increasing in all sectors except dairy last year. Farmers will be aware that there was a very significant drop in dairy commodities internationally and the base price for milk prices fell substantially. As a result, the sector that is traditionally the highest income sector is still the highest income sector but the average income has fallen from nearly €70,000 to approximately €47,000, which is still quite a good average compared to the other sectors.

That said, the dairy sector is in transition at present. Many farmers are investing to expand and grow. There has been investment of approximately €1 billion over the past three to five years on Irish dairy farms in preparation for expansion and growth post-quota. That is happening. Last year, despite the dairy price drop, there was a 13% increase in dairy output, so there is still a great deal of belief and confidence in the dairy sector. We introduced a €25 million package to support the dairy and pigmeat sectors. Due to the price drop farmers received a support payment of approximately €1,400 each, with a top-up of €800 for young farmers. We are supporting this sector. The sector understands price volatility and that this is a temporary problem. It also understands that we will help it get through it.

See this speech in context