Provisional figures for `EU farm incomes show 12.2% decline

THE provisional figures for farm incomes per worker in 2009 show a decline of 12.2% across the EU.

Agriculture and Rural Development Commissioner Mariann Fischer Boel said she was very concerned at the figures. “Clearly, the economic crisis has had a very serious effect on our farmers, with lower demand and relatively high production costs,” she said.

Ms Fischer Boel said this situation highlights more clearly than ever the need for a strong, modern and effective Common Agricultural Policy.

Direct payments provide a basic level of income for farmers, cushioning them from price fluctuations. They still have a crucial role to play, representing roughly a third of farm income in the EU.

Ms Fischer Boel said market measures can act as a real safety net in times of difficulty. The rapid actions taken by the Commission in the recent dairy crisis are a perfect illustration of what the CAP can provide when necessary, she said.

Rural development measures can also help, particularly when they are linked to restructuring or promoting services like environmental protection which are not remunerated through the market.

She said the commission will continue to be vigilant and will not hesitate to do all it can to help the farming sector.

“Looking ahead, we will continue to insist on the need for a modern CAP which can meet the multiple challenges faced by our rural areas in the 21st century,” she said.

Fine Gael spokesman Michael Creed said farm incomes in Ireland are dow 30% compared with the 12.2% across the EU.

“While Ireland is not unique in suffering from a decline in farm incomes it is unique in the sense that our Government has insisted on making a bad situation worse,” he said.