The level of direct payments to farmers has continued to rise and this year will be worth more than last year's total of €1.9 billion, the Minister for Agriculture said yesterday.
Launching the annual review and outlook for 2001/2002, Mr Walsh said direct payments now accounted for 57 per cent of aggregate farm income.
Last year, he said, aggregate farm income rose for the second successive year by 5.8 per cent, while average income per person employed in agriculture rose by 16 per cent.
"More importantly, the potential disaster of a major animal disease outbreak was avoided, thanks to a wonderful response from the general public and the dedication of the staff of my Department," he said.
Mr Walsh said the outlook for 2002 looked positive at this early stage.
The report also finds:
the agri-food sector accounted for 9.2 per cent of GDP, 9.7 per cent of employment and 8.4 per cent of exports. In addition, because of its very low import content, agri-food contributed 27 per cent to total net foreign earnings from exports;
Almost 60 per cent of farm household income now comes from non-farming sources (including off-farm employment, social welfare and other income);
2001 was an excellent year for most commodities. The value of sheep output increased by 38 per cent, while pigs increased by 19 per cent;
Irish agriculture continued to benefit significantly from EU membership. In 2000 the net gain from EU membership through budget transfers and higher EU prices amounted to almost €1.9 billion, or 2 per cent of GDP.