Eamon Gilmore (Dún Laoghaire, Labour)
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Question 31: To ask the Minister for Agriculture and Food her views on the fact that the reported 5% rise in the prices paid to farmers in 2006 has been all but wiped out by rising energy, fuel and fertilizer costs; and the steps she is taking to address this issue. [9105/07]

Mary Coughlan (Donegal South West, Fianna Fail)
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The Central Statistics Office measures the changes in agricultural prices and inputs. The agricultural output price index was 4.9% higher in 2006 than in 2005, while the input price index increased by 4.3% over the same period. This equates to a positive change of +0.6% for farmers. The increase in the annual output price index for 2006 was largely due to increased prices for cattle and pigs as well as cereals and potatoes, while the annual input indices for 2006 showed higher prices for energy, fertilizers, veterinary expenses, seeds and feeding stuffs.

In addition to these market price developments, account must be taken of the importance to Irish farmers of direct payments as an income platform. Decoupled payments, and in particular the Single Payment scheme, remain the primary mechanism of farm income support. In 2006, direct payments to farmers, excluding Forestry Premia totalled over €1,898 million and accounted for 81% of operating surplus. This very substantial figure includes almost €1.3 billion under the Single Payments Scheme, €246 million on the area based compensatory allowance scheme and €328 million on REPS.