Farmers take to the streets in protest at the drop in farm incomes
A combination of bad weather, reduced yields and difficult world markets contributed to lower prices for products in 2002. The wet summer also increased costs.
Government cutbacks, increased charges and the proposed major changes to the Common Agricultural Policy added to a growing sense of crisis and gloom among farmers.
As the year ended, the IFA was founded as the National Farmers Association. Farmers on tractors will move out from counties furthest away from Dublin and head for the capital, with others joining them along the route during the course of the week. A major rally is to be held outside Government Buildings on January 10.
The aim is to protest at the slide in farm incomes.
These will be down by 8.5% this year, according to the Central Statistics Office preliminary estimates, although the IFA maintains the figure in real terms, allowing for inflation adjustment, is about 13%.
Public expenditure cutbacks of €117 million in agriculture, increased animal disease levies and taxation changes in the budget all added to the worries of the sector in 2002.
On the positive side, there was a major increase in EU direct payments to farmers, to a record €1.61 billion. The overall spend by the Department of Agriculture and Food in 2003 including direct payments will be around €2.8 billion. While the IFA said it recognised the Government needed to get the public finances back under control, it described agriculture cuts in the estimates and budget as disproportionate.
John Dillon, in his first year as IFA leader, said the decline in farm incomes meant 2002 was by far the worst year in farming in the past decade.
Average farm incomes at €14,200 have fallen to 54% of average industrial earnings at €26,370.
While the bad weather contributed to the problem this year, the greatest cause of the decline was low prices in 2002 for the main products, cattle, milk, pigmeat and cereals.
Irish farmers were now in the unacceptable situation that product prices have been pushed down to levels far below the cost of production.
"This means that a substantial part of the CAP direct payments are being transferred either to input suppliers, processors or consumers. The figures for 2002 show this very clearly.
"Despite a €237 million increase in direct payments to farmers this year, total farm income including these direct payments has fallen by €223 million," he said. Mr Dillon accused Minister Joe Walsh of indifference to the mounting problems in farming and claimed this is alienating everybody in the industry and forcing people to stand up and fight for their families' incomes.
ICMSA president Pat O'Rourke said 2002 was disastrous for farming and that the budget and the book of estimates have created major obstacles to a new national agreement.
The level of dissatisfaction and militancy among farmers was now at a level not seen for over 30 years.
Farmers were rapidly losing confidence in the Government and particularly in the Minister. "I have no doubt that if the Government does not address the farm income crisis, there will be widespread action by farmers in the New Year," he said, urging all farmers and co-ops to support it.
The ICSA, which is to row in fully behind the New Year income demonstrations, called on Minister Walsh to make a public statement accepting that there is a major problem in relation to farm incomes.
Charlie Reilly, president, said the minister has yet to acknowledge that farming is in crisis and continues to offer a glib mantra about the millions and billions farmers receive in EU receipts.
In earlier comments, Minister Walsh said it was a difficult year for many reasons, including markets and the weather. But action he had taken at national and EU levels had alleviated the impact of the adverse conditions on farm income during the year.
The fact that very pessimistic predictions by farm organisations in the middle of the year did not come to pass was a testimony to the efficacy of these measures.
Farming in his experience has always been cyclical and one has to take a number of years at a time. This year's 8.5% decline in farm incomes, while disappointing, followed two years of growth totalling 39%.
Minister Walsh said he is resolute in his commitment to the development of the industry. His Department's projected expenditure in 2003 of around 2.8 billion, comprising exchequer and EU funding, underlined the Government's continuing strong commitment to the sector.
