Big rise in investment and farm income for dairy and tillage income

A “PHENOMENAL” level of on-farm investment, at €1.4 billion, and the sizeable increase in dairy and tillage farm incomes were the main highlights of 2007, said Liam Connolly, head of the Teagasc National Farm Survey team, which released results this week of the analysis of accounts kept on 1,151 farms.

Higher milk and cereal prices lifted average farm income, but income on cattle and sheep farms declined. Direct payments averaged €16,346, contributing 31% of farm output and 84% of average farm income.

The highest annual level of investment ever recorded on Irish farms occurred in 2007. A 76% increase took average gross investment (on farms that did invest in 2007) to €21,000, equal to 80% of their farm income. Dairy farms accounted for almost half of this investment.