The increase in prices paid to farmers in 2021 should be seen in the context of "historically low" prices paid to producers in 2020, according to the Irish Farmers' Association (IFA).

Tim Cullinan, the association's president, was reacting to the release of data from the Central Statistics Office (CSO) yesterday (Wednesday, December 8), highlighting the stronger performance of prices in some sectors in 2021.

Cullinan warned that these preliminary estimates from the CSO, which show an increase of 18% in farm income, "could be a very different picture in 12 months' time".

"Fertiliser costs in particular are rising at an unsustainable rate. Prices to farmers have increased by over 200% in the last six months [but] they have seen the price of UAN increase by 228% since last year, with urea now quoted at €900/t," he said.

According to Cullinan, the price increases for 2021 in cattle, sheep and tillage "have to be seen in the context of historically low prices to producers and, in the case of tillage, a poor 2020".

"The increase in the livestock sector is well below the average and comes off a very low base. It underlines the importance of direct supports for livestock producers," the IFA president highlighted.

The IFA submitted its final consultation on the Common Agricultural Policy Strategic Plan (CSP) this week, which Cullinan said is based on farm viability.

"Farm businesses need certainty and policymakers cannot introduce desktop solutions that fail to take account of the impact on incomes," he concluded.