Mixed year so far for Irish farmers while sector incomes were varied
Volatility continues to be the outstanding characteristic of international commodity markets, according to the banking group.
While reflecting on a number of the farm sectors, it notes that this volatility, in real terms, is at higher price levels than at any other time in the last half century, except during the oil crisis.
The bank reviews what has been a mixed year so far for Irish farming and reflects on how farm incomes varied between sectors in 2013.
While incomes on dairy farms rose substantially last year, incomes on all other farms declined significantly.
Last year again highlighted the importance of direct payments to maintaining farm incomes in all sectors, especially in the livestock and tillage sectors.
AIB’s agri strategy consultant, Michael Dowling, said: “While the outlook is somewhat mixed for individual farm sectors, the medium- to long-term outlook for the farming sector as a whole remains positive.”
Fintan Conway, executive secretary, IFA Grain Committee, said the recent good weather has boosted crop development, but yields are expected to come in below last season’s levels.
Irish cereal harvest production forecasts for the current season are for 2.1 million tonnes (mt) compared to 2.2mt last year.
Meanwhile, Liam Phelan, AIB agri advisor, urges a planned and prudent approach to on-farm investment. AIB recently launched a €500m Agri Fund from which farmers can secure finance for farm development, working capital and asset finance.
