Emmet Stagg (Kildare North, Labour)
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Question 136: To ask the Minister for Agriculture, Fisheries and Food her views on the 26% decline in farm incomes for 2006, compared to 2005, as reported recently by Teagasc; her plans to ensure an increase in farm incomes, particularly in view of the Teagasc finding that average farm income in 2006 was just €16,680 overall and €34,486 for a full time family farm; and if she will make a statement on the matter. [21791/07]

Mary Coughlan (Donegal South West, Fianna Fail)
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The NFS results for 2006 showed a 26% decline in average family farm income following an increase of 44% in 2005. Both these figures were due to exceptional circumstances as the overlap in direct payments paid in 2005, (with the introduction of the Single Payment Scheme and the payment of balance payments on 2004 premia scheme) was not repeated in 2006.

As in previous years farm incomes varied substantially depending on the size and system of farming. The overall average reflects the fact that many farms are operated on a relatively small scale and are suitable to part-time farming. Larger, more commercial units, derive a more substantial return for labour and investment.

In recognition of the contribution farmers make to our economy, not just in providing a source of high quality local food, but also in providing employment and maintaining the countryside, there is a high level of public support of the sector, with direct payments averaging €16,346 per farm in 2006. Since direct payments were decoupled from production in 2005, farmers have the opportunity to focus more clearly on market needs in order to maximize their profits.