Written answers

Thursday, 18 December 2014

Department of Agriculture, Food and the Marine

Agrifood Sector

Photo of Michael FitzmauriceMichael Fitzmaurice (Roscommon-South Leitrim, Independent)
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27. To ask the Minister for Agriculture, Food and the Marine if he will formulate a policy akin to that implemented by the former Land Commission to help maintain the viability of small family farms and thereby prevent the further depopulation of rural Ireland; and if he will make a statement on the matter. [48391/14]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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The re-introduction of a Land Commission would not be appropriate or practicable in modern Ireland.

My Department, State Agencies, industry and the farming organisations are working together to implement the Food Harvest strategy for the development of the agri-food sector to 2020. Progress to date has been very positive, as shown in the Milestones 2014report published in September. I recently announced the establishment of a new committee, chaired by John Moloney, with responsibility for developing a strategy up to 2025. Background documents and a consultative questionnaire are available on my Department's website, and I would urge any interested parties to make a submission before the consultation deadline of 9 January. The strategic development of the agri-food sector, focusing on value added products in growth markets, underpinned by sustainable and efficient farming and food processing, makes a vital contribution to farm viability.

The finalisation of CAP reform last year provides a huge degree of certainty to farmers in terms of the policy environment in which they operate. Direct payments provide a valuable source of farm income support and act as a hedge against the price volatility which is now a fact of life. The Rural Development Programme under Pillar II of the CAP will contribute directly to sustaining and improving the viability of Irish farms.

With regard to off-farm rural development, implementation of the CEDRA report has commenced and is being directed through the CEDRA Interdepartmental Group established and chaired by Minister Phelan.

The recent Agri-taxation Review was a joint initiative by myself and the Minister for Finance. To increase the mobility and productive use of land the Review included a comprehensive package to enhance the attractiveness of long-term leasing of land. It also included an enhanced provision for income averaging for farmers, which will allow more scope to smooth farm incomes within a commodity price cycle and thus help mitigate income volatility challenges. I was please d that Minister Noonan adopted all of these recommendations, which were part of the twelve new agri-tax measures included in Budget 2015 arising from the findings of the Agri-taxation Review.

Finally, it should be borne in mind that off-farm sources of income provide a vital support to farm households. Teagasc estimate that three quarters of farms have off-farm sources of income, whether from off-farm employment, pensions or other social protection payments. Teagasc's Options programme is actively encouraging and supporting farm families to examine new sources of income, both on-farm through diversification and innovative approaches such as contract rearing, partnerships and share farming, and through off-farm employment opportunities.

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