Kathleen Lynch (Cork North Central, Labour)
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Question 122: To ask the Minister for Agriculture and Food the number of farmers who have left full-time farming since 1997; her views on the fall in the numbers of full-time farmers; the steps, she is taking to deal with the drift from the land; and if she will make a statement on the matter. [26455/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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According to Central Statistics Office data there were a total of 147,600 farmers in 1997, of which 98,300 or 67% were classified as full-time or farmers having no other occupation. By 2003, the latest year that such data are available, the total number of farmers had fallen by 8% to 135,300. Of this number, 77,900 or 58% were classified as full-time or having no other occupation.

While the decline in total farmer numbers has been relatively modest at approximately 1% per annum, the decline in the number of full-time farmers is more substantial. This reflects an ongoing trend as increasing number of farmers opt to choose a combination of on-farm and off-farm employment. This trend towards part-time farming reflects a number of both push and pull factors, including low incomes on small farms and the much greater availability of off-farm employment. In recent years many farmers have opted to supplement their incomes from off-farm sources while continuing to farm successfully.

Both full and part-time farmers make important contributions to the rural economy. While the decoupling of direct payments will provide farmers with more flexibility and freedom, a clear focus on production costs and their optimal level of production will be critical to maintaining the viability of all farm holdings.

The Agri-Vision 2015 committee indicated in its report that it believes the trend to part-time farming will continue. Many smaller farmers find that combining farming with off-farm employment is an effective way to ensure the viability of their holdings. At the same time, full-time farmers are looking to the new flexibility offered to them under decoupling to develop and intensify their commercial farm enterprises.

This Government is committed to maintaining the greatest number of family farms through the development of competitive full-time farming, while at the same time providing an economic environment which enables smaller farmers to avail of both on and off-farm opportunities to secure their future.

Mary Upton (Dublin South Central, Labour)
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Is there sufficient input into alternative farm enterprises to encourage farmers who for whatever reason might have given up their previous type of farming and would be looking to some alternatives that would give them the opportunity to stay and earn a viable income on the land? Has the Minister had discussions with the Minister for Enterprise, Trade and Employment on ensuring adequate and appropriate alternative employment in rural areas for part-time farmers?

Mary Coughlan (Donegal South West, Fianna Fail)
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Alternative farming is certainly now an option on the basis of decoupling and I note a slight trend in that direction such as specialisation in the free range area. We are doing all we can to encourage organic farming. This is a difficult task but every effort is being made to encourage it. On the basis of REPS, for example, we were in a position to give opportunities to people who wish to get involved in organic farming and not have their full farm considered as part of the REPS application. Alternatives are certainly being provided.

This is being complemented by work being done by my colleague, the Minister for Community, Rural and Gaeltacht Affairs, Deputy Ó Cuív. He is working with me on Leader, CLÁR and a number of existing options as opposed to those provided by the Department of Enterprise, Trade and Employment. Much work parallel to that under the rural development directive, which has now been signed off, will provide those alternatives and support off-farm income. Growth in farmers' markets has given added impetus to farmers to produce for such markets and other alternative areas. We now need to drive forward the opportunities that are there.

Denis Naughten (Longford-Roscommon, Fine Gael)
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It is evident from the Minister's phrase "many farmers opted to supplement their income" that she spent time with Carr Communications during the summer. As the Minister knows well, the majority of those farmers have been forced to supplement their income because they cannot make a basic living from agriculture. Is the reason Teagasc now puts forward figures on whole household income on farms, rather than farm income, an effort to cook the books in that regard?

What measures are being taken to try to address the situation where retailers dictate the farm gate price farmers receive for their product? At the ploughing championships over the past week, farmers told me that viability is the key issue for them. What are the Minister's plans for the modulation fund and how will these be communicated to farmers?

Mary Coughlan (Donegal South West, Fianna Fail)
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I have no need to go to Carr Communications. I can speak to the Deputy in two languages, and a third if he is stuck.

Denis Naughten (Longford-Roscommon, Fine Gael)
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Deputy Brady knows all about that.

Mary Coughlan (Donegal South West, Fianna Fail)
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It is quite unfair and incorrect to say Teagasc cooked the books. While the household survey will indicate one result, the farm survey will indicate another. If I remember correctly, the farm survey shows a 3% increase in farm incomes. The policies we now pursue recognise the different types of farming taking place. I am delighted the Deputy took the opportunity to attend the ploughing championships. Let him heed the good work done by this Minister such as payment of disadvantage payments, REPS scheme four coming on stream——

Denis Naughten (Longford-Roscommon, Fine Gael)
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What about the beef premium overshoot? The farmers are €70 million out of pocket.

Mary Coughlan (Donegal South West, Fianna Fail)
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The beef premium overshoot is to be paid. The Deputy's facts are incorrect. I am glad he is wakening up to what is happening.

Denis Naughten (Longford-Roscommon, Fine Gael)
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The Minister slipped up there when she went to Brussels. She must have just brought a small basket with her.

Mary Coughlan (Donegal South West, Fianna Fail)
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Beef premium has been paid and the overshoot has been dealt with and passed by a committee in the Deputy's absence. Single farm payment will be paid on time in December and new alternatives are being worked on to try and support farming enterprises. I will continue with this work. Over a short period some 47,000 people have moved into REPS. Farmers are looking at alternatives.