Relevant Matter
Matters involving public funds
Public Policy Area
Social Protection
Period
1 Jan, 2024 to 30 Apr, 2024
Specific Details
The Impact of Means Testing on Farm Assist and other Social Welfare Schemes
Intended results
To propose that a full reassessment of the means testing requirement to ensure a fairer approach for people to access Farm Assist and to help increase numbers on such an important scheme. The requirement and appetite for change in the schemes are apparent and it is important to continue to provide financial security, social inclusion and service provision to communities into the future.
Farm Assist.
To Highlight that Farm Assist plays a crucial role in supporting the livelihoods and well-being of low-income farmers in Ireland. It helps to ensure that all farmers have the opportunity to participate in and benefit from agricultural activities, contributing to sustainable rural development and well-being of rural communities.
To highlight that although Farm Assist has more often been seen to benefit the western seaboard; it is becoming more important for the eastern seaboard in recent times due to falling incomes and increasing inflation. According to the Teagasc National Farm Survey 2022, only 43% of farmers are deemed viable, 25% are vulnerable.
For those deemed unviable, struggling to make ends meet amidst fluctuating market conditions, unpredictable weather patterns, and rising input costs, Farm Assist provides essential support that extends far beyond mere financial aid.
Means Assessment
To highlight that Farm Assist is a means tested social welfare scheme. Applicants for Farm Assist are typically required to provide information about their income from farming activities, off-farm employment, self-employment, rental income, or other sources. Farmers may also need to disclose details about their assets, such as land, livestock, machinery, savings, investments and property ownership. If the applicant has a spouse or partner, their income will also be included.
To raise the point that farming income is assessed as gross income over the past 12 months. Assessing farmers’ income as gross income is a major barrier to farmers being eligible for Farm Assist. Assessing Farm Assist based on net income provides a more accurate and comprehensive assessment of farmers financial need, profitability, and viability.
By accounting for business expenses and aligning with taxation principles, net income assessment ensures fairness, equity, and effectiveness in targeting support to farmers facing economic challenges and promoting the sustainability of agriculture in rural communities.
To emphasise that farm income is often seasonal and subject to fluctuations due to factors such as weather conditions, market prices, and input costs. Therefore, means testing may not accurately reflect the cyclical nature of farm income, leading to inconsistencies in eligibility and benefit levels for farmers whose income varies throughout the year. Currently, recipients on Farm Assist are reviewed on a yearly basis, this should be increased to a minimum of 3 yearly intervals.
To highlight that recipients on Farm Assist do not receive credit social insurance contributions, this differs to those on Jobseekers allowance who qualify for social insurance contributions. This should be rectified and recipients on Farm Assist must receive social insurance contributions for pension purposes. Strengthening pension provision for Farm Assist recipients contributes to the sustainability and resilience of rural communities.
Rural Social Scheme
To emphasise that the Farm Assist and the Rural Social Scheme (RSS) go hand in hand. The Rural Social Scheme plays a crucial role in supporting rural communities and addressing social and economic challenges in Ireland.
The Rural Social Scheme (RSS) aims to address the provision of certain services of benefit to rural communities, by harnessing skills and talents available among low-income farmers and fisherpersons, while continuing to provide income support where eligible persons are in receipt of specified, primarily, long-term social welfare payments.
To highlight that The Rural Social Scheme (RSS) is considered an income support initiative to provide part-time employment opportunities in the community and voluntary organisations. Communities in turn benefit from the skills and talents of local farmers and fisherpersons as their overall involvement in local projects and initiatives contributes to the overall well being and development of Rural areas.
However, in recent years there has been a decline in participation on the Rural Social Scheme. In the years 2016-2019, the RSS had over 3,000 participants on the scheme. However, since then participation on the scheme has been reducing.
To highlight that the reduction in Farm Assist participants is likely to be related to the changes in the means testing in Budget reforms of 2012 and 2013 which saw the percentage of farm income and off-farm self-employment income which is assessed increased from 70% to 85% and then to 100%. In 2014, the re-introduction of the 70% assessment came back into effect, however the numbers on the scheme continued to fall.
To demonstrate that, together, Farm Assist and the Rural Social Scheme play critical roles in fostering social inclusion, economic sustainability, and community resilience in rural Ireland. By supporting farmers, fishers and rural residents facing financial hardship and employment challenges, these programs contribute to the vitality and well-being of rural communities, ensuring that all residents have the opportunity to thrive in their local areas.
However, participants have reduced significantly on Farm Assist which points to the need for change. A full reassessment of the means testing requirement is needed to ensure a fairer approach for people to access Farm Assist and to help increase numbers on such an important scheme. The requirement and appetite for change in the schemes are apparent and it is important to continue to provide financial security, social inclusion and service provision to communities into the future.
Name of person primarily responsible for lobbying on this activity
Alice Doyle IFA Deputy President, Tadhg Buckley IFA Director of Policy & Chief Economist, Claire McGlynn IFA Social Affairs Policy Executive
Did any Designated Public Official(DPO) or former Designated Public Official(DPO) carry out lobbying activities on your behalf in relation to this return? You must include yourself, and answer Yes, if you are a current DPO or a DPO at any time in the past. (What is a Designated Public Official?)
No
Did you manage or direct a grassroots campaign?
No
Was this lobbying done on behalf of a client?
No
Lobbying activity
The following activities occurred for this specific Subject Matter Area.
Informal communication (2-5)
Designated public officials lobbied
The following DPOs were lobbied during this return period on this specific Subject Matter Area. These DPOs were involved in at least one of the Lobbying Activities listed above, but not necessarily all of them.
As returns are specific to a Subject Matter Area the above Lobbying Activities may be associated with multiple returns.
Denis Naughten
TD (Dáil Éireann, the Oireachtas)
Marc Ó Cathasaigh
TD (Dáil Éireann, the Oireachtas)
Joe Carey
TD (Dáil Éireann, the Oireachtas)
Joan Collins
TD (Dáil Éireann, the Oireachtas)
Paul Donnelly
TD (Dáil Éireann, the Oireachtas)
Éamon Ó Cuív
TD (Dáil Éireann, the Oireachtas)
Donnchadh Ó Laoghaire
TD (Dáil Éireann, the Oireachtas)
Paddy Burke
Senator (Seanad)
Róisín Garvey
Senator (Seanad)
Paul Gavan
Senator (Seanad)
Eugene Murphy
Senator (Seanad)
Mark Wall
Senator (Seanad)