The president of the Irish Farmers’ Association (IFA), Tim Cullinan has said that the outlook for farm incomes this year is “very challenging”.
He said that all sectors are now struggling due to a combination of static or falling prices and the increasing cost of production.
The comments come as the Teagasc National Farm Survey 2022 published today (Monday, June 12) revealed that the average family farm income (FFI) for Irish dairy farmers stood at €150,884 last year.
The survey found that the average income on tillage farms rose by 32% to €76,654.
However, average incomes were down by 13% on cattle rearing farms to €9,408 and fell by 21% on sheep farms to €16,454.
Incomes
IFA president Tim Cullinan said there were “significant and welcome” increases in incomes for some sectors but huge challenges in others.
He said that drystock sectors remain under “massive pressure financially”. 65% of suckler farmers earned less than €10,000 in 2022, while 53% of sheep farmers are in the same position, up from 42% in 2021.
“These results show why we need continued government support for the vulnerable sectors; otherwise, they will disappear in the medium-term with massive consequences for the economic and social fabric of rural Ireland.
“2022 proved to be very much a year of contrasts. Dairy and tillage farmers had a strong year on the back of increased farmgate prices which has driven an increase in overall average incomes.
“However, both sectors have seen massive falls in output prices in the last few months. Milk price is down almost a third and there are similar indications for the grain price for harvest 2023,” Cullinan said.
The IFA president noted that the national farm survey also highlights the ongoing contribution of farmers to the economy through on-farm investments.
“On-farm investment in 2022 amounted to €1.35 billion on aggregate across all sectors. It is worth bearing in mind that this investment takes place across every parish in rural Ireland where there is little else by way of economic activity.
“Members of the government parties should bear this in mind before they consider running down agriculture and its value to the Irish economy,” Cullinan said.