Michael Creed (Cork North West, Fine Gael) | Oireachtas source

In March this year the Central Statistics Office, CSO, released its preliminary estimate of output, input and income in agriculture and this indicates that aggregate farm income, or operating surplus, increased by 35% to €3.498 billion in 2017. This followed an increase in aggregate farm income of 3.6% in 2016 and 2.3% in 2015. Last week Teagasc released preliminary results of its national farm survey for 2017, which indicated that average family farm income was the highest on record at almost €31,400, a 32% increase on 2016, driven largely by a 65% increase in dairy farm incomes to over €86,000 on average.

It should be noted there are significant differences in family farm income depending on the system of farming and the size of the farm. Average income on cattle rearing farms increased by 1% to €12,700 and on sheep farms it increased by 8% to €16,900. Average income on cattle finishing farms decreased by 1% to €16,700. Dairy farms are consistently the most profitable farms, both on an average per farm and per hectare basis. However, it should be borne in mind that almost all dairy farms are classified as full-time farms in terms of the labour input required. Most cattle farms and the majority of sheep farms are classified as part-time in terms of labour input requirements. Dry stock cattle and sheep farms have a significant dependence on direct payments, which typically account for at least 100% of average farm income on these farms. This has not changed in recent years. Most dry stock farmers have off-farm sources of income, whether from off-farm employment of the farm holder or the spouse, State pensions or other social protection payments.

The Food Wise 2025 strategy includes actions to support farmers in improving the competitiveness and profitability of their enterprises. This includes actions aimed at helping farmers to improve productivity, manage the impact of price volatility and adopt new technologies. CAP direct payments, Ireland's rural development plan and our agri-taxation system include supports to incentivise land mobility, inter-generational transfer and farm restructuring, all of which are intended to improve farm competitiveness and sustainability, and to maximise the contribution of farm families to the local rural economy. I expect specific legislative proposals on CAP shortly.

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