Written answers

Wednesday, 8 July 2009

Department of Agriculture and Food

Farm Household Incomes

Photo of Ulick BurkeUlick Burke (Galway East, Fine Gael)
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Question 473: To ask the Minister for Agriculture, Fisheries and Food the average incomes for each of the farming sectors, cereals, dairy, beef, sheep and dry stock for each of the years 2006, 2007, 2008 and to date in 2009; his proposals for these sectors to avoid a collapse in family farm incomes; and if he will make a statement on the matter. [28773/09]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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The most recently published data on average incomes by sector is the National Farm Survey 2008. The table shows average family farm income by sector for the period 2006-2008 (2009 is not yet available).

Average Family Farm Income by System of Farming
â'¬200620072008
Dairying36,22151,07145,732
Dairying/Other24,77431,06823,733
Cattle Rearing8,2917,7027,739
Cattle Other11,29210,71011,200
Mainly Sheep11,90210,6829,593
Mainly Tillage28,53640,61119,380
All Systems16,68019,68716,993
Source: Teagasc, National Farm Survey (various years).

In line with the forecasts of international organisation such as the FAO and OECD, there has been evidence of increased volatility in market prices and farm incomes in recent years. Income rose in 2007 as tighter supplies on international commodity markets led to higher output prices particularly on dairy and cereal markets. While these high output prices were maintained into the early part of 2008, there was a swift decline in the latter part of 2008, which has continued into 2009, most notably for the dairy sector. There is no doubt that certain parts of the industry are facing significant challenges again this year, however, some reduction in input prices should help to soften the impact of these difficulties. I will be also pressing the European Commission to use all possible market management measures to improve demand and prices on EU markets. For the medium term outlook the European Commission forecast a gradual recovery aided by growth in global food demand due to population increase and also a longer-term decline in the growth of food-crop productivity. With this in mind preparatory work has begun on a new development plan for the agri-food sector for the period to 2020. It will focus on the critical issues of competitiveness, the challenges from the global economic downturn, currency fluctuations, climate change and how best to maximise the opportunities arising from a growing international food and energy crop markets.

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