Farming and Living in Rural Ireland: evidence from the 1990s and implications for the future Caroline Crowley

Presentation Outline National trends in Irish farming Spatial trends in Irish farming Evolving CAP - shift towards funding for rural development measures Issues raised in Farmer Surveys commissioned by Rural Development Groups Implications and conclusions

National Farm Trends Between (Census of Agriculture)   Active farms  17% (to 142,000)   Sole occupation farmers  24% (79,000)   Farmers with another job  37% ( 63,000) Growing importance of the non-farm economy to maintaining farms

Importance of Off-farm Income Components of direct income – farm households Source: Commins (2003) Income source 1987 (%) 1994 (%) 2000 (%) Wages/salaries (off-farm) Farming Other (e.g., pensions, investments) 1278

Some Spatial Trends in Irish Farming

Teagasc Walsh Fellow Research Data from Census of Agriculture and DAF 130 detailed maps of farm structure, farming systems and rural development schemes Spatial variation underpinned by   diverse land resources   uneven income opportunities in the non- farm economy   uneven land development pressures   evolving agricultural policies (changing farm income support structures)

Farm Income Support Structure CAP   Pillar 1 (market supports and SFP)   Pillar 2 (sustainable development of rural areas) CAP funding structure is changing – shift from Pillar 1 to Pillar 2

Farm Income Support related to Farm Output (CAP Pillar 1)

Average Farm Business Scale 2000 Darker green = larger av. farm businesses S & E - Dairying and Tillage

Farm Income Support related to Public Goods Delivery (CAP Pillar 2)

REPS 2003CAs 2000

Farm Income Supplementation from Non-farm Economy

Change in % farmers with other job   Pinks and reds = increases   Increasing orientation towards the non- farm economy state-wide

Summary of Farm Income Support Indicators   Farm income supports from:   CAP Pillar 1 – greater in the S & E   CAP Pillar 2 – greater in the N & W   Non-farm Economy – increasing statewide   In light of increasing orientation by farmers towards the broader economy, focus on CAP Pillar 2 measures for rural development

Rural Development

CAP Pillar 2 Close-up €1,711 million €6,028 million €461 million

Implications 1   DAF AgriVision Action Plan retains a commercial farming focus to increase competitiveness, innovation and market orientation   Axis 1 (21% of Pillar 2 funds, )   Ex Ante Evaluation of RDP by AFCon Management Consultants/Jim Dorgan Associates describe it as “primarily a plan to address environmental priorities” (2006: vi) based on the planned expenditure   Axis 2 (73.5% of Pillar 2 funds, )

Implications 2 “Regardless of some very positive aspects of farming life, people of enterprise will tend to pursue non-farming alternatives, where initiative and ability are rewarded pro rata” (UCD Department of Agri-business Extension and Rural Development and Rural Dublin LEADER, 1999) Evidence from 1990s of increasing orientation towards non-farm economy among farmers and other members of farm households Underpinned by rising third-level education rates and greater living standard expectations

Implications 3   Farmer surveys from LEADER groups show young people still interested in farming provided:   Access to off-farm jobs (Axis 3 and Regional Development via National Spatial Strategy)   Availability of necessary services such as childcare, eldercare, and public transport (Social Inclusion and Transport Programmes)   Farmer surveys indicate well-educated successors more interested in diversified farm enterprises (Axis 3 and Regional Development via National Spatial Strategy)   Axis 3 only attracts 5.5% of Pillar 2 funds,

Conclusions   Evidence shows important role for development of broader rural economy in sustaining farm households and encouraging farm succession   Challenges (Rural Foresight, 2006)   attracts small proportion of CAP funding   rural development falls under remit of wide range of government departments   research required to fill gaps in knowledge

Thank you