Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 459: To ask the Minister for Social and Family Affairs if he will review the means assessment for farmers to allow for revenue returns where available as an alternative to the farm profile means assessment; the reason this is not allowed at present; and if he will make a statement on the matter. [35175/06]

Séamus Brennan (Dublin South, Fianna Fail)
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Farm assist is a means-tested scheme providing weekly income support to low-income farmers. For the purpose of determining the rate of farm assist payable, deductions are allowed from net income in respect of qualified children, with the balance is assessed at 70%. In this regard, the means test is more favourable than the scheme's predecessor, the unemployment assistance scheme for small-holders.

In addition, income from the Rural Environment Protection Scheme is assessed separately, with the first €2,539 and 50% of the balance disregarded. 40% of net pay from insurable employment and €20,000 of capital are also disregarded.

Currently, 7,492 Farm Assist cases are in payment, receiving an average weekly payment of €178.79.

The assessment of means for the purpose of qualifying for farm assist is designed to reflect the actual net income, which is calculated as gross income less any expenses necessarily incurred, from farming. Income and expenditure figures for the preceding year are generally used as an indicator of the expected position in the following year. In computing income account is taken of the value of sales of milk, livestock, crops and subsidy payments such as headage payments. All expenses actually and necessarily incurred are deducted from this. These include the cost of fertilisers, repairs to farm building and fences, the cost of replacing farm machinery, use of hired labour other than family members, the cost of electricity and transport used for farming purposes, veterinary expenses, purchases of fodder and animal feed, rent of land, crop sprays etc.

The aim of the assessment is to use the previous years income to accurately reflect farm income in the following twelve months, having regard to the size and type of farm, the quality of land and taking into account any significant anticipated changes.

In addition, account is taken of any exceptional circumstances so as to ensure that the assessment accurately reflects the current situation.

The farmer is given a copy of the report on the sources of income and expenses and is also given details of how the Deciding Officer has calculated the means and how this determines the rate of Farm Assist payable.

In so far as tax assessments show the factual income position as required under social welfare legislation they could be used by the social welfare inspector in preparing the report. I do not think, however that the use of tax assessments would be a reliable approach in all cases.

Any farmer who is dissatisfied with the rate of means assessed may apply for a review or may appeal the assessment to the Social Welfare Appeals Office.