Fears that hard-pressed farmers are leading a flight from the land are unfounded, it was claimed today, as a report showed the industry is reaping the best incomes for years.
In the annual review of the sector, Minister for Agriculture Mary Coughlan insisted that despite the worries about the exit rate from farming, land sales remain at an historically low rate while prices keep on rising.
Farmers last year received the largest amount of funding ever - €2.2 billion - while food exports reached record levels, with beef and dairy products doing well.
"There is no evidence of the so-called flight from the land. Many farmers see a good future in their sector; they are continuing to invest in their farms," the minister said.
Ms Coughlan also noted there had been a significant increase in investment in farm buildings.
The National Farm Survey indicated that in 2004 some 36 per cent of farmers had off-farm employment while 78 per cent of farmers or their spouses had some source of off-farm income be it from employment, pensions or social assistance.
But Ms Coughlan highlighted the vital importance of agriculture to rural development and the national economy.
"Farming provides direct and indirect employment, it still forms the mainstay of rural development, it protects and enhances the environment, and it is central to the country's EU and international policy," she said.
"The Annual Review reflects the level of importance and the broad reach of the sector."
In the Annual Review and Outlook for Agriculture and Food 2005/2006 she noted that 2005 saw the introduction of the single farm payment with direct payments to farmers amounting to €2.2 billion - the highest level ever.
Aggregate farm income hit a record €2.7 billion, it noted. The increase in direct payments was due to a one-off overlap in direct payments as farmers received over €1 billion under the Single Payment Scheme and other funding from older schemes and rural development measures and payments for forestry.
Agricultural food exports were worth €7.5 billion with dairy exports up 8 per cent and beef exports up by 6 per cent. But Ms Coughlan cautioned: "While 2005 was an exceptional year in many respects, the farming sectors will face challenges on certain markets in 2006.
PA