McGuinness says uncertainty is delaying development in agriculture

FARM incomes are in a very poor state, in stark contrast with the Government’s high export growth ambitions for the sector, Fine Gael MEP Mairead McGuinness stated at an economic conference in Navan yesterday.

Ms McGuinness told attendees at the Farming in a Changed World seminar at the Lismullin Conference Centre that Ireland’s political and economic uncertainty is holding back development in agriculture.

“While commodity prices are rising, input costs are rising at a faster pace,” she said. “What may surprise many is that a mere 2% of family farm income comes from the marketplace (Teagasc 2006). That is quite simply unsustainable. It points to an urgent need for a realistic policy response.”

The MEP cited an admission by EU Agricultural Commissioner Ciolos that the Common Agricultural Policy (CAP) is failing to deliver decent incomes for farmers and that more needs to be done to tackle the income disparity between farmers and the rest of society.

“The honesty of that admission needs to be matched with a consequent and appropriate policy response. The conflict in policy between higher standards for foods produced within the EU and allowing into the EU food products from third countries produced to a lesser standard and at lower cost, must be addressed. And the current fatalistic attitude in the debate around the budget must be challenged.

“The Commission is expected to deliver its ideas for future budget later this year and publish its CAP reform proposals in June. On competition policy, the Commission is failing to fundamentally review the power of the major multiples and others along the food supply chain. Ireland needs a strong policy response, urgently, and it needs to be single minded in its approach.”

The latest CSO figures put average farm incomes at €17,500 a year, while the average industrial wage is €32,000 per annum.