Brendan Howlin (Wexford, Labour)
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Question 52: To ask the Minister for Agriculture and Food her views on the very small increase in farm incomes in 2004 as reported by the CSO which is not keeping pace with inflation; her proposals to improve farm incomes; the proportion of farm incomes which is derived directly from payments from her Department; and if she will make a statement on the matter. [1918/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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In December 2004 the CSO reported a 1.3% increase in aggregate farm income with the livestock sectors having a reasonably positive year and steady milk output and prices. These improvements are based on continuing positive trading conditions on EU markets for beef with consumption exceeding production, good demand for sheepmeat and steady demand on international markets for dairy commodities.

Direct payments paid by my Department to the farming sector in 2004 amounted to over €1.6 billion or 75% of aggregate farm income. The small increase in incomes is reasonably positive when it is taken into account that a substantial amount of the payments on 2004 premia entitlements will be paid this year in conjunction with the single farm payment. This includes a 40% balancing payment due on livestock premia compared with 20% in the previous four years.