Average farm income was €25,483 last year, Teagasc survey finds

Almost 20 per cent of farms have income less than €5,000, although huge variation across sector

Members of the IFA protesting on Kildare St in October 2012 during their day of action which raised the issue of falling farm incomes. Photograph: Cyril Byrne/The Irish Times
Members of the IFA protesting on Kildare St in October 2012 during their day of action which raised the issue of falling farm incomes. Photograph: Cyril Byrne/The Irish Times

Average farm incomes fell by 15 per cent last year to reach €25,483, Teagasc’s annual farm survey has found.

However, the study identified a large variation of incomes across the sector, with an average dairy farm income of €51,648 compared to an income of €11,743 for cattle-rearing farmers.

This is the 40th year of the national survey, which is conducted on 1,000 farms. The income figure includes direct payments such as the EU’s single farm payment but doesn’t include off-farm income, or the cost of family labour.

Last year, direct payments accounted for 81 per cent of average farm income. The average income received for selling produce was just €4,949, so many farms would not survive without these direct payments. The reliance on direct payments is highest among cattle-rearing farms, where they account for more than 100 per cent of income, showing that farmers would not be able to cover the cost of production without the payments.

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Almost 20 per cent of farms had a farm income of less than €5,000 last year while almost three per cent had incomes of more than €100,000. The lowest farm incomes were found in the Border region where the average income was just over €14,000 while the south east had the most profitable farms, with an average income of just over €37,000.

Teagasc economist Thia Hennessy said dairy farmers suffered the largest fall in incomes last year with a 24 per cent drop. She said the bad weather had particularly affected these farmers. Their spending on animal feed stuffs had increased by more than 30 per cent as cows were housed inside for much longer than normal.

The south-east and south were worst affected by the summer rainfall but overall, farmers spent nine per cent more on production costs last year. Average spending on concentrate feed was up by 30 per cent.

The survey found only 27 per cent of farms were economically viable last year. This means they had the capacity to pay family labour at the average farm wage and produce a five per cent return on non-land assets. Almost one third of farms were judged to be economically vulnerable last year, that is, the business was not viable and neither the farmer nor the spouse worked off the farm.

The number of farmers with off-farm jobs fell for the sixth consecutive year with 27 per cent of farmers employed off-farm last year. When spouses’ jobs are included, almost half of farm households had off farm work last year.

IFA president John Bryan said farm incomes would be hit further this year because of the disastrous weather conditions. "Without an immediate and prolonged improvement in the weather, many farmers will be facing an income crisis later this year," he said.

Farm income - the figures

Average farm income last year: €25,483

Dairy farm income: €51,648

Cattle-rearing farm income: €11,743

Direct payments made up 81 per cent of income

Only one third of farms are economically viable

27 per cent of farmers have an off-farm job

Alison Healy

Alison Healy

Alison Healy is a contributor to The Irish Times