The price farmers get “is not keeping pace with the marked increase in agricultural inputs”, according to the Irish Farmers’ Association (IFA).
The latest figures on agricultural input prices from the Central Statistics Office (CSO) show farmers are “caught in a classic cost-price squeeze”, IFA president Tim Cullinan commented.
Agricultural inputs
On an annual basis, the agricultural input price index increased by 1.8% in February 2021 compared with February 2020.
In the same period, the agricultural output price index increased by 1.3%. Therefore, the resulting terms of trade index was down 0.5% over the last year.
Further analysis of the February 2021 input sub-indices with the same time last year shows that the agricultural input price indices for feeding stuffs increased by 6.7% while straight feeding stuffs increased by 13.8%.
The price index for fertilisers increased by 4% in February 2021 compared with January 2021, while straight fertilisers increased by 5.4% in the same period.
IFA Farm Business chairperson Rose Mary McDonagh said that the rise in input prices without a corresponding increase in output prices means that the difference “is coming out of farmers’ pockets, and impacting on their bottom line”.
Price indices monitor trends
The indices monitor trends in prices paid to farmers for their produce and in prices paid by farmers for purchases of goods and services.
The agricultural output price indices are intended to measure trends in the price of agricultural produce sold by farmers.
The agricultural input price indices are designed to measure trends in the price of farm inputs purchased for current consumption (i.e. non-capital materials and services).