Economists predict rise in farm income this year
The average farm income in Ireland in 2009 is estimated to have declined to €12,000 per farm – the lowest since 1999.
However, the 180 delegates at the Teagasc Outlook Conference 2010 in Portlaoise yesterday heard an improvement is likely in 2010.
Teagasc chairman Dr Noel Cawley said farming and the agri- food industry, despite last year’s difficulties, is a long-term sustainable business that is supporting rural communities and can deliver a fair income for those involved in it.
The underlying fundamentals of the sector are sound but farmers will have to do business differently in the future. They will have to be less tolerant and more ruthless about the levels of efficiency on their own farms, he said.
Head of the Teagasc National Farm Survey Liam Connolly said last year’s fall in farm-gate prices resulted in the largest annual decline in farm incomes in decades.
The dairy sector suffered the largest decline in incomes due to the drop in milk prices while cereal farming had another bad year.
“However, Teagasc anticipates that milk prices and dairy farm margins should begin to recover in 2010, but it may be 2011 before the sector returns to normal levels of profitability,” he said.
Mr Connolly said an estimated half of Irish dairy farmers recorded a negative net margin in 2009.
The conference also heard how Irish cattle prices suffered a significant fall in 2009, with finished animal prices down by 10%, store cattle by 11% and weanling prices down by 15%.
Irish cattle prices are forecast to rise by 4% in 2010, but over two thirds of farms are likely to continue making a loss from cattle farming this year.
Teagasc economists also predict an upward movement in cereal prices and a reduction in input costs in 2010, which are likely to result in an increase in cereal crop gross margins.
With declining supplies in the EU, pig prices should also be favourable in 2010.
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