Farming groups pleased as average farm income returns to €17,500

FARM groups have reacted positively to CSO figures showing a 46% rise in 2010 farm incomes versus 2009, but say these figures ignore soaring energy costs.

The IFA and ICMSA both said the return of the average farm income to €17,500 augurs well for the food sector, which will need to retain manpower to meet the state’s increased production and export goals. The income gains over disastrous 2009 figures were matched by production increases.

Minister of Agriculture Brendan Smith, said: ‘‘The increase in income was strong in cereals where improved prices resulted in an 88.8% rise in the output value of the sector to €202 million, the second highest annual figure in 15 years.

“The dairy sector also enjoyed a better year, with output value up €427m or 38.8% on 2009. This was based on an increase in production of 7.2%, which represents a positive first step towards achieving the targets set out in the Food Harvest 2020 report.”

The livestock sector also showed strong increases in output value. The beef sector increased 12.2% (€177.6m). Pigmeat was up 7.8% (€24m) while sheepmeat increased by 7.6% (€12.1m).

ICMSA general secretary Ciaran Dolan noted: “The value of milk output in 2010 has not recovered to the 2008 figure, while energy costs increased by 8.5%, and yet the country still awaits any action on reducing the costs of electricity that goes past yet another empty review.

“In fact, the only actual Government decision has been to increase energy costs in the form of the increased carbon tax.

“There was a welcome decrease in interest payments of 17% brought about, primarily, by lower interest rates because the capital amounts outstanding only decreased by 10%.”

IFA president John Bryan said: “This improvement is very much needed by farm families whose livelihoods were badly affected by a range of factors in 2008 and 2009. The recovery augurs well for the sector’s planned expansion.”