Written answers
Thursday, 26 September 2024
Department of Agriculture, Food and the Marine
Farm Costs
Cathal Crowe (Clare, Fianna Fail)
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75. To ask the Minister for Agriculture, Food and the Marine if his Department tracks trends in family farm incomes on a multi-annual basis, taking account of increased inputs, costs and inflation; and if he will make a statement on the matter. [38021/24]
Charlie McConalogue (Donegal, Fianna Fail)
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I am acutely conscious of the difficulties facing family farms as a result of the numerous challenges the sector has faced in recent years. Following the record income levels reached in 2021 and 2022, last year was a challenging year, with increased input prices and decreases in output prices resulting in incomes falling for the first time in five years. It is positive to see that the position is currently improving.
While Government cannot get involved in the market directly, Government funding improves competitiveness, directly supports farmer incomes and also supports the sector’s environmental ambition. My approach has been to support farm families economically, this year delivering payments of €200 per suckler cow and €20 per breeding ewe to farmers, the highest payment ever for the sheep sector.
Teagasc's National Farm Survey provides a detailed annual overview of the economic situation on Irish farms. Family Farm Income (FFI), the return from farming for farm family labour, land and capital, is the principal measure used.
The CSO publish monthly Agricultural Output and Input Price Indices that monitor trends in prices paid to farmers for their produce and prices paid by farmers for purchases of goods and services. In the 12 months to July 2024, the Agricultural Output Price Index rose by 8.8%, while the Agricultural Input Price Index decreased by 6.8%. Therefore, we should see a recovery in incomes for 2024, albeit that weather conditions this year have been challenging and there is still some uncertainty over the outlook.
I have secured the highest ever funding for a CAP programme in Ireland with €10 billion being provided directly to farmers and rural communities up to 2027. Furthermore, this record funding has allowed this Government to provide for the best funded agri-environment scheme ever in ACRES and I ensured that all 55,000 applicants were accepted into the programme.
Looking ahead to 2024, it is good to see reductions in input prices and a recovery in output prices. This should see incomes recover back towards the levels of income seen for a number of years before 2023. The government recognises the vital role that farmers play in sustainable food production and ensuing food security and will continue to support family farm income through the CAP as well as specific sectoral supports.
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