The Minister for Agriculture, Joe Walsh, writes that it is the job of himself and the farm leaders to help prepare and position the farming industry to adapt to the changing circumstances
The year 2002 was a disappointing year for farm incomes and a difficult year for farmers. There is no dispute about that. Neither is there any dispute about the fact that people engaged in agriculture, as in any other sector, are entitled to a decent standard of living. This is at the very core of Government policy on agriculture.
There have been strong arguments about the level of farm income. There are, however, a number of points, which I would like to make without getting bogged down in the detail of a complex statistical debate.
Working on simple averages can be misleading. Aggregate farm income is measured across a range of different situations, some farmers working full-time, some working almost full-time to some on a very part-time basis. If comparisons with other employments are to be made, they should be made on a like-for-like basis. I think the fairest comparison that can be made is that between the income from full-time farming, which is €31,000, and the average industrial wage which is €25,000.
Direct payments make a very large contribution to farm incomes (70 per cent). Without this support many would not be able to continue in farming. I believe, for many reasons, this level of taxpayer support is fully justified.
Production costs affect disposable incomes and there are wide variations in production costs on Irish farms. There is clearly an issue to be addressed in the context of competitiveness. The message is simple: the more competitive we are, the better farm incomes will be, whatever the level of EU and Government support.
Agriculture, in both practical and policy terms, has become much more complex. The external environment within which it operates is subject to rapid change. This phenomenon is not unique to agriculture, it applies to virtually every walk of life. The trend towards part-time farming has been criticised, and while we might wish for things to stay as they were, the reality is that within the EU framework within which we now operate, without the alternative employment many families would not be living in rural Ireland. This is not unique to Ireland, as it applies to all economies. Again, a valid comparison can be made with a young married couple living in a town or city, where both partners are working in order to pay the mortgage.
Agriculture is central to economic and social life in this country. The Common Agricultural Policy has had a large and positive impact on Irish farming. Apart from the support and market opportunities which it has provided, it has encapsulated the vision of agriculture which the Government, the farming sector and society in general share very strongly.
This is centred on sustainable family farming, which protects the rural environment and provides safe food. This is the basis on which the sector merits such strong public support from the European taxpayer.
The CAP has been subject to on-going reform and further change is on the horizon. The negotiations of past reforms have been very beneficial. Currently there are two major proposals on the table - the Mid-Term Review and the WTO (World Trade Organisation) Round. By their nature, these will have profound effects on the future shape of farming in Ireland and Europe.
The main elements of the Mid- Term Review centre on the concepts of decoupling (the transfer of payments from product/animals to land), modulation (a reduction of a proportion of direct payments for use elsewhere) and strengthened rural development. It is my strongly held view that direct support to farmers is the best way of ensuring a vibrant rural economy.
The WTO discussions are focused on market access, domestic supports and export support. Both sets of negotiations are inter-connected, and while it is difficult to be precise as to when they will conclude, it is clear that we are entering into a period of intense negotiating activity in the months ahead.
My negotiating position will be based on protecting the gains of Agenda 2000, ensuring the best possible on-going level of support for Irish agriculture, protecting our production base, especially in the livestock and dairy areas, and ensuring that the European multi-functional model of agriculture is respected.
There are those in a WTO context who feel that support for agriculture should be abolished, or at least drastically reduced. There are some who would sacrifice agriculture interests for gains elsewhere and some who blame the CAP (over-simplistically, I suggest) for Third World hunger. Ireland is fully committed to the relief of world hunger and allowing access by underdeveloped countries to EU markets. However, I am also conscious of the need to protect our interests and I can assure farmers and the industry in general of the Government's, and my own, full commitment.
Against such a changing background, what is our vision for agriculture? It is one where the sector remains our major indigenous industry, which is competitive and sustainable and which provides good safe food from a clean environment. Those involved in the industry must earn a decent income. It is also important that the different elements of policy are coherent and that the sector understands what society expects from it.
THE events of this week have highlighted the role of agriculture - that they have provided the basis for a vigorous debate is positive. I commend the fact that the events have been orderly and well-marshalled. One point has been forgotten this week: primary agriculture is an economic activity. Trends on world markets will have a major bearing on incomes, when world prices are good, farm incomes are good.
Where do we go from here? In my experience as Minister, there has always been a range of issues and challenges to be addressed at any given time.
In an international context we must and will negotiate with our usual sense of focus, determination, and unity of purpose.
As well as negotiating, it is my job and that of the farm leaders to help prepare and position the industry to adapt to the changing circumstances. In many ways this is the most profound challenge for the period ahead.
On the domestic front there are clearly issues and concerns. The farm organisations are no strangers to the negotiating table. They visit my Department on virtually a daily basis on one issue or another and this relationship will continue.
They have also been valued and effective partners in the social partnership process and I believe strongly that they have benefited from the partnership process. Therefore there are fora to which they can bring their current issues and concerns. This has been the way of doing business in the past and there is no reason why this should not be the case for the future.