Olivia Mitchell (Dublin South, Fine Gael)
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Question 11: To ask the Minister for Agriculture, Fisheries and Food his views on whether the average income for sheep farmers of €9,000 is an adequate wage; the action he is taking to ensure a viable sheep production industry; and if he will make a statement on the matter. [36293/09]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The Deputy seems to be referring to the Teagasc National Farm Survey 2008, which shows the average Family Farm Income (FFI) for sheep enterprises was €9,593 last year. The Survey also indicates that sheep farms received an average of €15,816 in direct payments in 2008. In addition, account needs to be taken of off-farm income. More than half of all sheep farms in Ireland were shown to have some form of off-farm employment in 2008.

I have acknowledged previously the particular difficulties being experienced by the Irish sheep sector. The downward pressure on production and demand being experienced by this sector is not unique to Ireland. All of the main sheep-producing countries in Europe and indeed worldwide are facing problems, with reducing flocks, pressure on income and producers leaving the sector. The sector benefits significantly from the main Schemes operated by my Department – the Single Farm Payment, the Disadvantaged Areas Scheme and REPS. I also allocated €7 million from this year's Single Farm Payment National Reserve to hill sheep farmers, in the form of an Uplands Sheep Payment. It is estimated that some 12,500 hill sheep farmers will benefit from this once off payment. In addition, Bord Bia will spend up to €1 million this year on the promotion of sheep and lamb at home and abroad and Teagasc has allocated almost €1.5 million for sheep research.

The needs of the sector have also been taken into account in deciding how to use the unspent CAP funds for the next three years. Of the €25 million or so available annually, I have decided to allocate €18 million annually to sheep farmers, in the form of a Grassland Scheme. This Scheme will act as a significant support to incomes in the sheep sector. Also, under proposed amendments to the Rural Development Programme Ireland 2007-2013, which has been forwarded to the EU Commission, an indicative figure of €8 million has been allocated for sheep fencing and mobile handling facilities to assist sheep farmers in reducing labour input. A decision from the EU Commission on the amended Programme, including this measure, is expected later this year.

All of these additional supports will be of significant benefit to the sheep sector. In addition, I believe that the report of the Sheep Industry Development Strategy Group – the "Malone Report" - provides an excellent blueprint for the future development of the sector. While most of the group's recommendations are the responsibility of the industry itself, a number are within the remit of my Department and its state agencies, who have made very good progress in advancing them. Areas of development include:

the establishment of 'Sheep Ireland' to take over the Department's current breed improvement programme and develop a new one;

work on mechanical carcase classification for lamb, which should provide greater price transparency, a pre-requisite for efforts to improve quality and respond to the needs of the market;

the establishment of the Lamb Quality Assurance Scheme in 2007, which is operated by Bord Bia and now has over 7000 participants; and

a programme developed by Teagasc, for Technology Evaluation and Transfer farms, which will provide an opportunity to engage with sheep farmers on the use of the latest management practices and to identify research and development needs.

While the sector is facing significant challenges at present, I am confident that it will benefit appreciably from the combination of financial support and the actions being taken by my Department, its agencies and the industry, on foot of the Malone report.