Written answers

Thursday, 26 April 2018

Department of Agriculture, Food and the Marine

Farm Household Incomes

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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193. To ask the Minister for Agriculture, Food and the Marine the extent to which farming remains a viable option for traditional farm families; and if he will make a statement on the matter. [18513/18]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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In March this year, the Central Statistics Office released its Preliminary Estimate of Output, Input and Income in Agriculture for 2017, and this shows that aggregate farm income, or operating surplus, increased by 35.2% to €3,498 million in 2017. This followed an increase of 3.6% in 2016. The value of goods output for the sector increased by 13.6% to €8,016 million.

There are almost 140,000 farms in Ireland (CSO 2013), but around 50,000 of these are very small farms with off-farm sales (standard output) of less than €8,000 per annum.

The Teagasc National Farm Survey (NFS) provides an overview of the economic situation on Irish farms on an annual basis. The principal metric used is family farm income, which represents the return from farming for the farm family to their labour, land and capital.

In 2016 Teagasc published the National Farm Survey Farm Viability Report which takes account of income earned outside the farm business and represents over 84,000 farms, whose standard output exceeds €8,000 per annum. The survey found that:

- 36% of farms were classified as economically viable. A farm business is deemed to be viable if the farm income can remunerate family labour at the minimum agricultural wage and provide a 5% return on the capital invested in non-land assets.

- 35% of farms were classified as sustainable. A farm household is considered sustainable where the farmer or spouse has an off-farm income.

- 29% of farms were considered to be economically vulnerable. A farm is considered vulnerable if the farm business is not viable and if neither the farmer nor spouse work of the farm.

Teagasc's National Farm Survey for 2016 showed that average family farm income was €23,848, which is made up of an average of €46,561 for full-time farmers and €11,086 for part-time farmers.  It should also be noted that there are significant differences in family farm income depending on the system of farming and the size of the farm. Teagasc's detailed National Farm Survey for 2017 will be published next month. Teagasc estimated last December that average farm income for 2017 could reach almost €32,000, which would represent an average increase of 30% over 2016.

The Food Wise 2025 strategy includes actions to support farmers in improving the competitiveness and profitability of their enterprises.  This includes actions aimed at helping farmers to manage the impact of price volatility; improving productivity; and adapting new technology; and incentivising land mobility and farm restructuring.  These supports will make Irish farm enterprises more competitive and sustainable, and maximise their contribution to regional and local rural economies.

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