Mary Upton (Dublin South Central, Labour)
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Question 30: To ask the Minister for Agriculture and Food her views on the fact that only 22% of those engaged in farming obtained their full income from farming; and if she will make a statement on the matter. [24641/06]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The Teagasc national farm survey 2004 indicates that on 78% of holdings, the farmer and-or spouse had some source of off-farm income, be it from employment, pensions or social assistance. The survey indicates that 36% of farmers had an off-farm job while 22% of farmers' spouses had off-farm employment. The presence of off-farm employment was most common among cattle and sheep producers where family farm income tended to be low and there was surplus labour on farms.

There is an ongoing trend towards farmers participating in economic activities outside the farm, which reflects both push and pull factors including incomes factors, surplus labour and the much greater availability of off-farm employment. Many farmers now supplement their incomes from off-farm sources while continuing to farm successfully.

Both full-time 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.

This Government is committed to maintaining a core of competitive, full-time farmers, while at the same time providing an economic environment which enables smaller-scale producers to avail of both on-farm and off-farm opportunities to secure their future. Full-time farmers are looking to the new flexibility offered to them under decoupling to develop and intensify their commercial farm enterprises while many small-scale producers find that combining farming with off-farm employment is an effective way to ensure the viability of their holdings.

This trend away from full-time farming towards the part-time option is expected to continue. The recent report of the Agri Vision 2015 Committee states:

Off-farm employment and income are now standard parts of farm family work and income patterns. There seems to be no doubt that present patterns and trends will continue and that farm household income reliance on off-farm employment will increase under the newly reformed CAP.

This Government is focused on ensuring that farming families have the best possible options available for them to stay on the land. That may mean remaining as full-time farmers if their farm size and resources are sufficient and if they choose that option. Alternatively, it may be through the combination of on-farm and off-farm income, which many small-scale producers find the best route to a viable life on the land. This Government is committed to supporting and encouraging our farm families in whichever option they choose.

Mary Upton (Dublin South Central, Labour)
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Does the Minister agree that the fact that only 22% obtain their total income from farming should concern us? Only large-scale ranchers will be viable into the future. What actions can the Government take now and in future to ensure adequate off-farm employment? What if there is a downturn in the economy affecting the availability of such employment and what would be the likely outcome for farmers?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Average family farm income on 38% of farms is classified as derived from full-time farming. This measurement is based on labour input. I have met different farming groups and other people in rural areas and discussed off-farm income options for farmers over recent months. At regional food fora there has been particular interest in small-scale food production from small-scale farmers and others who have not worked on the land for some time but have been involved in other economic activity. Farmers who do not have viable holdings are not confined to farming activities as they would have been in the past. There were no off-farm sources of employment then but, thankfully today, there are such opportunities in substantial numbers. Many primary producers, including small-scale farmers, are also involved in food enterprises. There are approximately 135,000 family farms in addition to 800 industrial units involved in the agrifood industry, which is particularly important. By definition, those enterprises are spread throughout the country.

Mary Upton (Dublin South Central, Labour)
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I have a brief question concerning this country's self-sufficiency in food production, given concerns that have been raised on a number of occasions about imports from third countries. Is the Minister confident that the continued production of foodstuffs here will be adequate to meet local demand?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The Minister, Deputy Coughlan, has emphasised at every fora available to her, at the EU and the World Trade Organisation talks, the absolute necessity for the green box to be protected as regards direct payments. In 2005, €1.6 billion was paid out to the farming community in direct payments. It must be recognised that there was an overlap with some of the payments from the previous year concerning some of the schemes that were being wound up. Direct payments, however, are of crucial importance to farmers. Over the next few days, the Minister will be attending the WTO talks where she will seek the support of other EU members to protect the CAP and European agriculture generally. That is of critical importance to us. The Taoiseach and Ministers, including those present in the Chamber, have raised this matter with other EU Ministers at all available fora. We have emphasised the importance of protecting European agriculture and that policy will be pursued relentlessly by the Government.