Pat Breen (Clare, Fine Gael)
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Question 468: To ask the Minister for Agriculture, Fisheries and Food the measures he will introduce to assist farmers here whose incomes have fallen significantly over the past two years; and if he will make a statement on the matter. [25343/10]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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2008 and 2009 were difficult years in terms of farm incomes. The National Farm Survey 2009 reports a decline of 30% in family farm income following a fall of approximately 14% in 2008. In 2009, the decline in income was mainly a result of a decline in output prices, particularly in the dairy sector, while in 2008 the decline was mainly a result of rising input costs. Market support measures taken at EU level, which I had pressed strongly for, assisted in stabilising dairy prices in 2009, albeit initially at very low levels. Since then prices have recovered significantly.

The level of public support for the agri-food sector remains very substantial, with direct payments, which amounted to approximately €2 billion on aggregate, accounting for 143% of average family farm income in 2009. The high proportion of direct payments being used to cover production costs indicates the importance of managing costs as efficiently as possible. It is also important to take account of likely volatility when making production decisions. Of the €2 billion spent on direct payments to farmers in 2009, €1.3 billion was spent on the Single Payment Scheme, €338 million under REPS and €223 billion on less favoured areas. This is a very substantial level of public support which will be largely maintained in 2010.

It should also be borne in mind that a large proportion of farm households have income from other sources be it employment, pensions, social assistance or other income. For farm households that find themselves in income difficulties, the Farm Assist Scheme, which is administered by the Department of Social and Family Affairs, is a specially targeted measure that is available to assist them.