Inclusive of amendments of 30 September 2008, of 15 May 2009


Table 3.1: Rural area typology and profile



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Table 3.1: Rural area typology and profile





Area type

per cent of rural popn

Popn density

persons/km2



Elderly dependency ratio

per cent Labour force at work in manufacturing

Females at work part-time as per cent of total females at work

Peri-urban

29

41

193

19

25

Very strong

26

28

174

22

24

Strong, adjusting

14

15

246

14

24

Structurally weak

16

15

266

20

20

Marginal

8

17

261

21

29

Highly diverse areas and culturally distinct areas

7

16

240

11

27


Analysis of age and gender population structure

The most recent national census of population2 recorded an increase in the national population from 3.6 million in 1996 to 4.2 million in 2006, or an increase of 17 per cent. The rate of growth was greatest in urban areas and along the east coast. This growth was accompanied by a continued concentration of population clusters along newly upgraded transport corridors between major cities and surrounding regional towns.


Table 3.2: 2006 Population by gender and age structure (percentage)


Age group

Under 15 years

15—19 years

20—24 years

25—64 years

65 years and upwards

Total

Male

10.5

3.5

4.1

27.1

4.9

50.1

Female

9.9

3.4

4.0

26.5

6.1

49.9

Total

20.4

6.9

8.1

53.6

11.0

100.0

The demographic profile of the country as a whole is strong when viewed in age terms. However, this profile differs between regions (See Table 1, Appendix 1).


The Central Statistics Office (CSO) has projected a national population of 5.7 million by 2026. This would represent an increase of 35 per cent over the population recorded in 2006. However, regional disparities in this growth are predicted, with above average increases in Dublin and the Mid-East and below average increases elsewhere.

In and out migration and problems arising from peri-urban pressures and remoteness

Based on a recent data set, the CSO estimates that all regions apart from Dublin and the Mid-East will lose population to internal migration. However, all regions will experience gains from external migration. Under the same scenario the natural increase in population will account for 52.5% of the overall population increase in the West compared to 54% in the greater Dublin region and 73% in the Midlands.


External migration plays a significant role in terms of regional population. CSO projections are for an inward migration of 0.6 million people in the 20-year period to 2026. Again, while these numbers will disperse throughout the eight regions, nearly half will concentrate in the Greater Dublin region, with lowest numbers gravitating towards the Mid-West and Midlands (See Table 2, Appendix).
Areas of weak population structure

A further priority is the need to halt population decline in more remote rural areas. In the period 1926–2002 significant rural areas at local administration level in 18 out of 26 counties experienced a population decline in excess of 50 per cent. Recent research into population patterns in Ireland shows that some 30 per cent of rural dwellers can be described as living in areas experiencing weak population structure and a consequent diminishing economic base.3




Rural economy and employment patterns

Ireland’s regions are predominantly rural – characterised by medium-sized and small market towns, villages and open countryside. One of the most fundamental challenges facing rural economies is the impact of restructuring in agriculture and traditional industry and the associated need for diversification and growth in the non-farm rural economy GVA/person in the BMW (Border, Midlands and Western) region was down from about 77% of the state average in 1996 to 72% of the state average in 2006. This compares to 110% of the state average in the S&E (Southern and Eastern) region in 2006. Although the region accounted for a little over 25% of the people at work, it contributed less than 20% of the GVA4. Research by the ESRI (Economic and Social Research Institute) notes that the “difference between the ‘poorest’ and ‘richest’ counties increased over the period 1995 to 2002, suggesting that there was income divergence during the ‘Celtic Tiger’ era”. However it also notes that the operation of the fiscal system reduced income disparities across counties – the gap in income is significantly reduced once subsidies and taxes are taken into account.5


Employment in the secondary sector (e.g. manufacturing and construction), which is predicted to decline in coming years, is particularly important in rural areas – it accounts for 32% of employment in rural areas compared to 28% nationally. The downturn in construction combined with a decline in traditional manufacture impacts significantly in rural areas. These sectors represent considerable proportions of full-time employment and are also important outlets for the growing numbers of part-time farmers. This underscores the need for training and education amongst those in vulnerable sectors.
Rural tourism, which has traditionally been a mainstay of rural employment, also faces serious challenges. The tendency for tourists to concentrate in the greater Dublin and Eastern region highlights the need for regionally balanced tourism6.


Off-farm employment patterns

A growing feature of farming patterns is the increase in the number of ‘part-time’ farmers. In 1991, some 73.4 per cent of farmers described ‘farm work’ as their sole occupation, with the remaining 26.6 per cent having another (either major or subsidiary) occupation. The trend towards what is generically entitled ‘part-time farming’ is illustrated by CSO data for 2007, which indicates that farming was the sole occupation for 66,600 or 52 per cent of holders. 47% of farmers had another either major or subsidiary occupation while 1% were farmholders who did not work on the farm.

The most recent Census of Agriculture, carried out in 2000, showed that just under 5 per cent of farms (6996) were involved in non-agricultural activity on the farm. The breakdown of this figure is outlined below7:


  • Forestry 2,849 farms

  • Farm tourism 1,240 farms

  • Recreational activities 374 farms

  • Home crafts 173 farms

  • Other 2,871 farms

Relevant indicators in relation to the rural social economy include the following:




  • The national take-up of DSL broadband is approximately 5% in rural areas compared to a national average of 13%. National figures are below the EU average.

  • The services sector accounts for 55% of GVA in rural areas compared to 65% nationally.



Agricultural structures

The total land area of Ireland is approximately 6.9 million hectares, of which 4.3 million hectares or 62 per cent is used for agriculture and approximately 710,000 hectares for forestry - about 10 per cent of total land. Seventy nine per cent of agricultural area is devoted to grass, 11 per cent to rough grazing, 7 per cent to cereals and 3 per cent to other crops (potatoes, sugar beet etc).


The principal changes in agricultural area in the 2000 – 2007 period were a decrease in the total amount of land used for agriculture including a 3% decrease in the area devoted to pasture and a 3% decrease in the area devoted to silage production.
As regards the age structure, 7 per cent of Irish farmers are under 35 years of age and 51 per cent of Irish farmers are over 55 years of age. Figure 3.1 provides a detailed description of the age profile in Irish farming in 2007.

Figure 3.1

Given trends in the general economy (to 2007) and the attraction of alternative employment – as evidenced by the growth in part-time farming – there is an ongoing need to promote agriculture to young people. This can be done through a combination of incentive measures and an overall increase in the competitiveness and profitability of farming.


In 2007, the total number of farms was 128,200 (CSO, Farm Structures Survey 2007). Since 2000, there has been a decline in the number of farms in all size categories, but most notably in the smallest size group. Average farm size increased marginally to just over 32 hectares, with one-fifth of farms less than 10 hectares and 63% less than 30 hectares. Overall, the rate of decline over the period is estimated to have been 1.4% per annum, which is a slight reduction on the rate of decline over the previous 7-year period and at a lesser rate than in several other European countries. Figure 3.2 below provides a detailed description of farm size in Ireland in 2007.

Figure 3.2

One of the major obstacles to increasing farm size is the low level of land mobility, with only 6,146 hectares of agricultural land sold in 2004, combined with an average sale price of €16,261 per hectare of land in 2004. Official data on land sales in not available for the last few years however recent reports on land sales suggest that the volume sold remains at very low levels while land prices are contracting. Figure 3.3 shows the decline in sales of agricultural land as land prices have risen.
Figure 3.3

In order to overcome this difficulty, many farmers have turned to leasing, with about one-third of all farmers or 32% of farms having leased approximately 17% of the total agricultural area in 2007. To encourage older farmers (over 40 years of age) to lease out farmland to other farmers, an income tax exemption exists for land leased for longer than five years. The 2000 Census of Agriculture data highlighted a high level of farm fragmentation, with only 28 per cent of farms in a single parcel of land, while 18 per cent of farms consisted of five or more parcels. At farm level, land mobility, consolidation and early transfer of land and flexible quota management are important aspects in facilitating structural change.


3.1.2 Performance of agricultural, forestry and food sectors
The agri-food sector continues to be one of the most important and dynamic indigenous manufacturing elements in the Irish economy. It is estimated that the agri-food sector8 accounted for approximately 6.7% of Gross Value Added (GVA) at factor cost in 2006. The primary agriculture, fisheries and forestry sectors together accounted for approximately 2.5% of GVA. . Due to its very strong export orientation and low import content, it is responsible for a significant proportion of the country’s net foreign earnings. A report completed in May 20089 examined the net inflow of funds to the Irish economy associated with the biosector (Agriculture, forestry and fishing as well as their downstream industries). The net inflows are the net value of exports i.e. the inflows to the economy associated with exports less the associated outflows in importing materials and the repatriation of profits by foreign companies. In 2005, the net foreign earnings of the biosector amounted to 32% of the total earnings from primary and manufacturing industries which was double the sector’s 16% contribution to exports that year.


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