Conor McGuinness (Waterford, Sinn Fein)
Link to this: Individually | In context

86. To ask the Minister for Agriculture, Food and the Marine the additional supports he will put in place to support family farms in light of the recent finding that only 42% of medium-sized and large farms are economically viable. [36153/25]

Martin Heydon (Kildare South, Fine Gael)
Link to this: Individually | In context

I thank Deputy McGuinness for raising this point. The statistic referred to by him is from the recently published Teagasc national farm survey, NFS, 2024 preliminary results. By way of context, in 2024, the NFS results were based on a sample of 818 farms with a standard output of €8,000 or more per annum, representing almost 88,000 farms nationally. Some 65% of farms in Ireland are represented in the survey and 96% of the livestock population is held on those farms.

In 2024, average family farm income increased by 87% to almost €36,000. Year-on-year improvements were recorded for all sectors, with particularly strong results for sheep, dairy, tillage and cattle rearing. As the Deputy notes, 42% of farms were categorised as economically viable. This represents a 15% increase on 2023 and is one of the highest annual viability outcomes on record. When considering this categorisation, it is important to recognise that the NFS includes full-time and part-time farms and that the viability of farms varies across farming systems. Just over one third of NFS farms are classified as full-time farms and two thirds as part-time farms. Many of these part-time farms rely on off-farm income. In 2024, in addition to the 42% of farms categorised as economically viable, the NFS categorised a further 34% as sustainable.

The Government continues to provide strong support to the sector, including through €9.8 billion of Common Agricultural Policy, CAP, supports and targeted sectoral payments. In 2024, income growth and, subsequently, viability were driven in part by additional support payments, which had a particularly positive impact on sheep and cattle systems. Across all farm systems, the average value of direct payments represented 60% of family farm income, with CAP support payments typically accounting for a larger share of income on cattle and sheep farms, and Pillar 2 payments a particularly important income source for smaller dry stock farmers.

Conor McGuinness (Waterford, Sinn Fein)
Link to this: Individually | In context

The Teagasc survey might show increases in income, but let us not get carried away. We all know that these increases are coming from rock bottom. A rise on next to nothing is still not enough to live on. We have to be clear and truthful with ourselves. The stark reality is that only 42% of farms are economically viable, even after the so-called rebound. Take dairy out of the mix and things are worse again. Suckler farmers are on €13,500 a year and beef farmers are on €18,000. That is far below the minimum wage. It is no wonder that so many farmers have left. They have given up.

While we are talking about rising incomes, farmers are still waiting on ACRES payments, they are still being squeezed by sky-high input costs, especially fertiliser, and they are being told there is no money left in the TAMS budget. This is the lived reality on family farms. I ask plainly, when will we see real targeted income supports that match the reality on the ground for beef, suckler and sheep farmers?

Martin Heydon (Kildare South, Fine Gael)
Link to this: Individually | In context

I have to disagree with the Deputy, respectfully. I understand the point he makes about the impact on small-to-medium-sized farms. As regards ACRES payments, however, 99% of 2023 farmers have been paid fully, with 97% advance payments in respect of 2024 and 94% of the remainder having received their balancing payments for 2024 as well. It was not good enough when I came in. I put a lot of focus on and energy into it. There were 14,500 farmers unpaid, there are 1,500 left, and we are moving might and main to get their cases resolved. Significant progress has been made in this area.

I did not say - nobody said - that there was no money left for TAMS. It is not factually correct for the Deputy to say that. I have talked about being responsible in my management of that budget because it is a budget of €440 million that has to be managed from 2021 to the end of 2027. I would not be responsible if I did not flag that I may need to introduce ranking and selection in the future.

Conor McGuinness (Waterford, Sinn Fein)
Link to this: Individually | In context

The message is out there that TAMS is running low. Let us be clear: the Government has failed to address the crisis in farm incomes and, by extension, rural Ireland family farming. We can talk about surveys and percentages, but families are struggling to make ends meet. There is a cost-of-living crisis gripping communities, urban and rural, all across this State. When we look at farm incomes and the low floor that is there, they need something they can rely on, something that is sustainable, fair and secure. I refer to those rising input costs and the delayed payments. There has been progress, and fair play to the Minister, but it should never have got to that stage and it put so many family farmers under huge financial pressure. Although the percentage of farmers still waiting may be small, they are still waiting and still stretched because of it.

What we need is a radical shift, with a Government that puts suckler beef and sheep farmers at the heart of rural policy, not at the bottom of the pile. Viability cannot be a luxury or a pipe dream. It is a basic requirement for the future of these rural communities.

Martin Heydon (Kildare South, Fine Gael)
Link to this: Individually | In context

TAMS has been hugely positive, so when the Deputy suggests that the Government is failing, I disagree with that. TAMS has seen a massive ramp-up and uptake and drawdown of money, and I continue to support that. It is important that the message go out there that if a farmer is considering buying equipment beforehand, he or she is not guaranteed that it will be covered if ranking and selection have to come in. We want responsible activity on the part of farmers and no farmer making an investment that does not meet the criteria afterwards. Ranking and selection are responsible things to do and I will absolutely defend that.

Let me be really clear. The Deputy suggests that the Government is somehow failing farmers. When I came into the Dáil in 2011, the value of agrifood exports from this country was €8 billion. Last year, it stood at €19.2 billion.

12 o’clock

Successive Government schemes and programmes, like Food Harvest 2020, Food Wise 2025 and now Food Vision 2030, which are ten-year strategies, have delivered a marked increase in income for our farmers from the value of their produce. I travel the world on trade missions, selling our top-valued produce from the length and breadth of the country. There is a direct link between those extra markets - those increased higher-value markets - that I, along with my Department and An Bord Bia, work with on marketing our food companies around the world. There is a direct link between that and the fact farmers are currently getting record prices for their produce across a whole host of areas. They are not mutually exclusive and we must continue to work to support our smaller and medium-sized farms, but Government is delivering for our farmers not just in terms of supports but in getting the best price for their produce we can.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
Link to this: Individually | In context

Question Nos. 87 and 88 are grouped. There is not sufficient time left in the slot to deal with them so I propose to move to the next item which is Leaders' Questions. Is that agreed? Agreed.