70% of dairy farmers view loss of derogation as a challenge to farm viability

A recent ‘Farmer Trends and Insights Survey’ has listed the loss of derogation and EU-funded farm schemes as a major source of worry for farmers

Half of the farmers surveyed said EU-funded farm schemes were critical or essential to maintaining their farms.

In a recent study, 70% of dairy farmers said the loss of derogation was now the main challenge for farm business viability.

The annual ‘Farmer Trends and Insights Survey’ was conducted by the FRS Co-op over the summer amid ongoing uncertainty over Ireland’s ability to retain its nitrates derogation from the European Commission.

The survey of more than 500 farmers found more than half of all farmers (52%) cited the loss of the nitrates derogation and increased fertiliser regulations as one of the biggest challenges facing farm business.

This figure increased to 70% when solely looking at dairy farmer feedback.

Also identified were unpredictable weather conditions, with 55% of respondents reporting it was a significant challenge. Meanwhile, 35% of farmers admitted to facing financial pressures in their business.

Indicative of the high prices for milk and meat so far in 2025, less than a third of farmers (30%) identified market prices as an issue this year, while almost 35% of farmers said they were struggling to find labour support.

Following the recent proposals from the European Commission that would see a 22% reduction in ringfenced funding for agriculture under the next Common Agricultural Policy (CAP), the survey found exactly half of Irish farmers said they could not survive without the support of farm schemes.

The FRS Co-op survey found exactly 50% of farmer respondents said EU-funded farm schemes were either “critical” or “essential” to maintaining the viability and economic sustainability of their farm business.

This figure rose to 68% when filtered for responses from non-dairy farmer respondents, which is reflective of the fact more than half of all beef or sheep farmer respondents said they were part of the ACRES scheme, 46% said they farmed in an Area of Natural Constraint (ANC), and 33% were participating in the SCEP scheme.

Commenting on the survey results, group chief executive of FRS Co-Op Colin Donnery said: “The 2025 FRS Farmer Trends and Insights Survey sends a clear message: farm support schemes are not just helpful, they are essential. 

With half of Irish farmers stating they could not survive without these schemes, it’s evident that EU-funded supports like CAP are the backbone of rural sustainability and critical to maintaining employment in what remains Ireland’s largest incumbent industry.

Faced with the twin threat of reduced EU support and the potential loss of the nitrates derogation, almost 44% of Irish farmers said their main priority was to reduce costs, while 35% said they planned to reduce the environmental impact of their farm.

Only 20% of farmers said they planned to expand their farm business over the coming year, while almost 12% said they would seek to diversify their farm income.

Almost a quarter (24%) of respondents admitted succession planning was a challenge for their farm business, while a third of farmers said they aim to prepare a succession plan over the next year.

Finally, the FRS Co-Op survey also found 44% of dairy farmers cited labour shortages as a challenge for their business, with almost half (47%) of dairy farmers saying they employ additional labour on a weekly basis.