One in three beef farmers are “unsure if they will still be farming in five years”, with only 41% stating that they have a positive outlook for the sector, Ifac’s Irish Farm Report 2023 has shown.
The report, which was published today (Thursday, February 16), shows that although 2022 finished on a positive note in terms of beef prices, farmers remain concerned about a number of challenges.
80% reported input prices as their main concern, with half of those surveyed stating that high costs are the main obstacle to the introduction of new technology on-farm.
Meanwhile, 50% of participants cited rules and regulations as their main concern, and 27% said farm and family financial pressures were the biggest challenge.
Breaking down the financial pressures that farmers in the beef sector are grappling with, the survey shows that farmers are most worried about meeting transport, fuel, electricity and gas costs.
On a positive note, the report revealed that 62% of farmers in this sector do have a pension plan in place with regular payments.
Beef and suckler prices
According to Ifac’s report, beef prices in early 2022 stood at circa €4.30/kg for prime cattle, which rose to €5.30/kg in June. Although this fell back between July and November, it recovered towards the year end.
Suckler weanling producers also saw a rise in the same year according to the report, which states that “the outlook in the short to medium term” for both cattle and sucklers “appears positive”.
“With the opening of new markets, the demand for cattle supplies is expected to remain strong for at least the first half of 2023.
“While the improved returns in factory prices are welcomed, costs of production have also risen. Record-high fertiliser prices have increased the cost of providing silage and many cut back on fertiliser usage.
“These farmers will need to consider their winter requirements and ensure they can provide enough feed on farm without incurring the additional cost of bought-in feed,” the report states.
CAP 2023-2027
Ifac’s report outlines that as the new Common Agricultural Policy (CAP) comes into effect this year, many farmers will see a slight increase in their basic payment.
“But, there are also a number of farmers who will see their payments fall and [they] should now be budgeting their farm finances,” it stated.
The report recommends that farmers analyse the CAP budget and take the rising inflation rate into account when doing this.
Comparison to last year’s report
The overall figures in this year’s report are less positive than last years, when 44% reported a positive outlook for the beef sector and only 70% said that input prices were their main concern.
In addition, Ifac’s Irish Farm Report for 2022 found that 34% of farmers said that their business was not viable for the next generation, however, that figure has risen to 38% in this year’s report.
On the question of whether or not participants felt they would be farming in five years, last year one in five said they were unsure. This figure has not improved, with one in three feeling unsure this year.