Jan O'Sullivan (Limerick East, Labour)
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Question 131: 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. [6967/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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On 24 February 2005 the CSO published the revised output, input and income statement for agriculture, which reports a 3% increase in aggregate farm income in 2004 compared with a 2.2% increase in inflation in the same year. The 3% increase in incomes should be viewed positively when account is taken of the fact that a substantial amount of payments on 2004 premia entitlements will be paid in 2005 in conjunction with the single farm payment. These include a 40% balancing payment due on livestock premia compared with 20% in the previous four years.

In 2004 over €1.6 billion was paid by my Department to the farming sector in direct payments accounting for 74% of aggregate farm income.

The value of the cattle, sheep and pigs sectors increased by 8.3%, 6.1% and 6.2% respectively. These improvements reflect continuing positive trading conditions on EU markets for beef with consumption exceeding production, good national and international demand for sheepmeat and strong pig prices.