Farmers can expect small drop in income next year

DECLINING output and rising costs could add up to a small fall in Irish farm incomes in 2004, according to Teagasc economist, Liam Connolly.

He was addressing the Teagasc Situation and Outlook in Agriculture conference in Dublin, where his colleague, Billy Fingleton, predicted that milk prices will fall by about 4% in 2004.

EU compensatory payments will offset this price drop, but lower calf prices and cost increases will put continuing pressure on profits, he said.