Economics of agriculture key theme of Teagasc conference

THE economics of agriculture will be the theme for an Outlook 2010 Teagasc Rural Economy Research Centre conference in Portlaoise on January 15.

Teagasc reports that 2009 has been another difficult year for the farming sector.

Inclement weather impacted negatively on grass and forage production, as well as cereal and potato crop harvesting. Many farmers will face forage shortages, resulting in higher concentrate usage.

But on a more positive note it says the input costs of fertilisers, concentrates and energy are down on those of 2008. However, reduced farmgate prices for milk, beef and cereals has reduced farm output, resulting in reduced profit margins for all the major enterprises. Investment in farm buildings and machinery in 2009 declined to below traditional levels following the boom investment years of 2005 to 2008. Teagasc says farmers, farm planners and the agribusiness sector require accurate data on agricultural outputs, inputs and policy changes in planning their business. Income estimates for 2009 will provide a base for production intentions in the coming year.

More importantly, the outlook for the dairy, beef, sheep, pigs and crops sectors in 2010 will be critical to making informed planning decisions for the short to medium term.

Financial analysis will be presented at the Portlaoise conference for each enterprise. There will also be presentations on EU agricultural policy and on Common Agricultural Policy reform post-2013.