Farmers drop 33% of their annual incomes
The Dairygold milk supplier, who is a married father-of-three from Knockarourke, Donoughmore, Co, Cork, farms 86 acres and has a 54,000 gallon quota.
He says the cut in milk price plus inflation and the atrocious weather have led to severe hardship. For the peak milk-producing months, he was getting 13.27c less per gallon for his milk while the average drop for the whole of the year was 12.9c per gallon, he says.
On the basis of his quota size, that worked out at an income drop of 6,966, with inflation of 5% on costs of €30,000 adding another €1,500 to the figure, making a total non-weather related income drop of €8,466.
Then the weather effects created associated increased costs. He spent €1,600 extra on meal and fertiliser from the start of April to the end of October: "A lot of farmers also found veterinary costs higher because of increased animal health problems, related mainly to the poor weather."
Jerry said buying meal because of decreased silage quality was also going to cost him €1,500 over the winter. The total weather-related costs came to 3,500. "We have a total income drop of €11,966. Our 2001 income would have been €36,000 before interest. We have, therefore, lost 33% of our income before interest."
Jerry said everybody has tried to improve their situation and he got some part-time work during the year from the Farm Relief Services. Looking forward, he hopes the weather improves but says the prospects for milk prices don't look good. If the milk price stays as it is the most optimistic prospect at this stage and there is an anticipated 5% inflation, he said he will be lucky to hold farm income at 2002 levels for the coming year.
"It appears at this stage that we will have taken a 33% cut in income and that it will be permanent," he said.
He said spending cutbacks, increased charges and other changes in the book of estimates and budget including a doubling of animal disease levies on farmers had crippling effects on incomes. He said he hoped the nationwide protests will bring about a reversal of some of the provisions that affected farmers. "There is huge frustration and despair among farmers and this is manifesting itself by the large number of farmers exiting dairying and farming in general.
"The situation is more serious for farmers where there is only one income," he said, explaining that his wife, Siobhan, works as a primary school teacher.
