Costly court settlements have seen the Irish Farmers’ Association (IFA) announce a €1.5 million operational deficit for its accounts up to March 31 this year.

The IFA accounts to year end March 31, 2018, show a slight increase in income for the year and a slight decrease in expenditure, the organisation revealed, following the approval of the accounts by its national executive.

Income for the year stood at €16.252 million, with an expenditure of €17.527 million, showing an improvement on 2017 figures, which saw a €16.199 million total income and €17.717 million expenditure respectively.

The operational deficit stood at €1.5 million, with the overall deficit after a gain on financial assets and a taxation charge at €471,000.

The farmers’ organisation also recorded a loss of €1.439 million in 2017; it recorded operating surpluses of €962,406 in 2016 and €1.303 million in 2015.

Membership for the year ending March 2018 was at 71,712 – up slightly on 2017’s figure of 71,465.

Income from membership stood at €5.66 million – down slightly from the €5.68 million received the previous year.

IFA national treasurer Tim Cullinan said the year was challenging, but progress has been made in the three-year plan to eliminate the operating deficit.

The expenditure for this year contains exceptional items totalling €1.4 million which relate to the legal action with the former general secretary, which was settled in February.

“Provisions for part of this settlement and ongoing legal fees had been included in previous years’ accounts.

“This matter is now concluded and the costs associated with it are fully through the system,” the treasurer added.

Cullinan said the balance sheet strength of the organisation on March 31 2018 stood at €15.847 million.

Court settlement

The IFA reached a court settlement with its former general secretary Pat Smith in February relating to the action for breach of contract in relation to the terms of his departure from the IFA and a separate defamation action relating to statements and comments made subsequent to his departure from the association.

The IFA confirmed at the time that the settlement is going to cost in the region of €1.9 million.

A settlement of €350,000 was reached for defamation and a €1.55 million severance package was agreed.

Smith was employed by the IFA for more than 26 years and was chief executive for nearly seven years, until his employment terminated by agreement in November 2015.