Dáil debates

Thursday, 26 April 2018

Other Questions

Farm Household Incomes

11:20 am

Photo of Martin HeydonMartin Heydon (Kildare South, Fine Gael)
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7. To ask the Minister for Agriculture, Food and the Marine the details of farm incomes over the past year; the way in which these figures compare to previous years both nationally and in County Kildare; and if he will make a statement on the matter. [18248/18]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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This question relates to the level of farm incomes in County Kildare and throughout the country.

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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In March this year, the Central Statistics Office, CSO, released its preliminary estimate of output, input and income in agriculture for 2017, and this shows that aggregate farm income, or operating surplus, increased by 35.2% to €3.498 million in 2017. This followed an increase of 3.6% in 2016. The value of goods output for the sector increased by 13.6% to €8.016 million. Teagasc's national farm survey for 2016 showed that average family farm income was €23,848, which is made up of an average of €46,561 for fulltime farmers and €11,086 for part-time farmers. It should also be noted that there are significant differences in family farm income depending on the system of farming and the size of the farm.

Teagasc's detailed national farm survey for 2017 will be published next month. Teagasc estimated last December that average farm income for 2017 could reach almost €32,000, which would represent an average increase of 30% over 2016. Aggregate and average farm income is not calculated at county level, so it is not possible to give details of farm income for County Kildare. 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 manage the impact of price volatility; improving productivity and adapting new technology; and incentivising land mobility and farm restructuring. These supports will make Irish farm enterprises more competitive and sustainable and maximise their contribution to regional and local rural economies.

There are a number of competitiveness recommendations and actions being progressed through the Food Wise 2025 high level implementation committee, HLIC. I chair the committee, which is made up of high level representatives from all the relevant Departments and State agencies. It reviews progress on the detailed actions on a quarterly basis. Stakeholders regularly present to the committee on priorities for particular sectors or themes and competitiveness will be a theme for the June meeting. I will also be publishing Steps to Success 2018, the third progress report of Food Wise 2025, in July and this will include a report on progress on the various competitiveness actions.

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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The Minister will have a further opportunity.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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I thank the Minister for his reply. To what degree does the Minister expect to be able to promote and foster growth in farm incomes in the future having regard to new markets throughout the European Union and in third countries? Will he indicate the extent to which he feels farm incomes need to grow throughout the country to ensure the retention of the next generation on family farms?

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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Before the Minister answers, Deputy Eamon Scanlon wishes to make a comment.

Photo of Eamon ScanlonEamon Scanlon (Sligo-Leitrim, Fianna Fail)
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There is no doubt that this has been the worst year for farm incomes right across the country because of what has happened due to the bad weather. Yesterday, we saw hailstones falling right across the country. The cold weather has slowed down grass growth and that is affecting incomes. Will the Minister consider extending the fodder scheme for another two weeks? In common with other Deputies, I have had quite a number of calls, particularly from the north west where the demand is still great for fodder. There is hay coming in and it is badly needed.

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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Does Deputy McConalogue want to make a quick comment?

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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I endorse Deputy Scanlon's request. Unfortunately, the Minister's response to the fodder crisis has been very poor at all times. Even in response to measures he was asked to take in a Private Members' motion in the Dáil last week, he has still not acted to introduce a hardship scheme or indeed meal vouchers for farmers who still have to feed cattle. I endorse Deputy Scanlon's request. Fodder is still being imported in certain parts of the country and is going to be needed for another week or two. Will the Minister confirm that he will extend the scheme to enable that?

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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In fairness, Deputy Jackie Cahill did ask that in Question No. 3. The Minister might try to address that and take into account the other comments, including Deputy Cahill's.

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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I acknowledged earlier that the recent adverse weather has caused difficulty on some individual farms. Our response has been measured and appropriate in the context of an ongoing developing situation. We will continue to observe and respond accordingly if it is considered that it is required to extend the fodder scheme. The Deputies will be aware that all the indicators of grass growth in the past week have been significantly ahead. That is ultimately the solution to the fodder crisis. However, as I said, it is something we keep under review.

I take Deputy Durkan's point concerning how we protect farm incomes. What is obvious is that 2017 farm incomes will be exceptionally high. However, taken in the round, what is also abundantly clear is that there is exceptional volatility in farm incomes. In the context of the question tabled by Deputy McConalogue on CAP, one of the things we need to look at is how we address volatility in the context of the policy instruments available to us through the CAP. The industry is doing a lot, particularly on the dairy side, on fixed price and fixed margin contracts etc. That is important. However, are there other things we can do? It is no use singing off the rooftops because 2017 dairy farm incomes were high when we all see now that the price of milk, allied with increased costs associated with the weather, is going to show this is a very challenged sector at the moment. It is likewise with livestock, although prices may be strong at the moment. We must address volatility and not take a particular snapshot at a moment in time that can be skewed one way or another.

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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We have gone way over time. The next question is in Deputy Durkan's own name.