The EU Cap still fits for Ireland's farmers

ONE MORE THING: MUCH IS being made of the ability of our agriculture sector to help drive a recovery in the economy.

Food and drink exports rose by 11 per cent here last year to €7.9 billion, according to Teagasc’s 2010 annual report, just published. This amounted to a tasty 4.9 per cent of our total exports. Dairy exports were €300 million ahead. With EU milk quotas being axed in 2015, there is much talk of potential expansion opportunities for dairy farmers here.

In his budget speech, Michael Noonan spoke of how people were returning to the land in their droves, having been distracted for years by the property boom.

“Active, energetic and profitable farming is fundamental to the agri-food sector,” he said.

Yet there were other figures that jumped out of Teagasc’s report. Namely, that EU subsidies account for 98 per cent of family farm incomes, through the Common Agricultural Policy.

The average income was a modest €17,771.

Of course, many governments subsidise farming activities to ensure a secure supply of quality food for their citizens.

Farming also offers a good regional spread of investment and employment.

Other industries attract state support, so there’s no reason why farming should not. Still, Teagasc’s figures reminds us that farming is far from a profitable activity in a free market sense. It also highlights the importance of Simon Coveney securing a good deal for Ireland from the ongoing Cap reform talks.