Farm investment could reach €1bn

FARMERS plan to invest €612 million in their farms this year, according to the findings of a Teagasc survey published yesterday.

Based on responses from 1,020 farms participating in the Teagasc National Farm Survey, planned investment by farmers in 2006 was 71% higher than in 2005.

But if the pattern of understating investment plans as farmers did in 2005 is repeated, the actual farm investment could be in the region of €1bn.

Teagasc researcher Anne Kinsella, who is responsible for carrying out the survey, said at individual farm level the average planned investment is €26,240, compared with planned investment of €15,291 a year ago.

The reintroduction of the farm waste management scheme and concerns with compliance regulations have resulted in higher planned expenditure on buildings.

Planned investment in farm buildings increased from €167m for 2005 to €261m in 2006.

Farmers plan to invest €85m on machinery this year. In the past, they have always understated their planned investment in machinery, as they did again last year.

The planned investment was €105m but actual investment was €288m.

Ms Kinsella said the survey showed planned investment in land for 2006 at €242m but again this figure could be exceeded.

Investment in milk quota was €24m in 2005, compared with the projected investment of €29m.

The planned investment is lower this year at €16m.