Farm machinery sector worth €4.8bn to Irish economy, report finds
(Left to right) Karol Kissane, head of Public Sector Services and Economics at ifac; Maurice Kelly, president of FTMTA; and Michael Farrelly, chief executive of FTMTA. Picture: Gareth Chaney
The farm machinery sector is worth €4.8bn to Ireland's economy, a new report has revealed as the industry calls for an overhaul of Enterprise Ireland and local supports, and CSO recognition.
The report, which was commissioned by the Farm Tractor & Machinery Trade Association (FTMTA) in partnership with ifac, is the first-ever in-depth economic review of the value of the farm machinery industry in Ireland. It reveals that the sector is worth almost €4.8bn annually to the Irish economy, a figure comparable to the €6.2bn brought in by international tourism in 2024.
The study highlights the industry’s strategic importance to rural Ireland, positioning it as one of Ireland’s most valuable, yet often overlooked, indigenous sectors.
Key findings included a direct annual output of €2.6bn, a figure made up of new and second-hand machinery sales, components, parts, servicing, exports, and more than €700m in exports, with Irish firms also supplying machines to over 60 countries, including Europe, the US, Australia.
The report estimated that, in total, the direct farm machinery sector contributes almost a quarter of a billion euros each year in taxes alone, and that every €1 of output generates an additional €0.85 in the economy.
It also revealed that the machinery trade is a major rural employer, sustaining 25,000 jobs across the country, with 14,926 direct jobs supported by the sector, as well as an additional 9,703 indirect roles totalling 24,629 jobs.
The report underlines how the industry has transformed in recent years with indigenous companies now offering precision farming tools, such as GPS, yield mapping, auto-steering, variable-rate fertiliser spreading, and harnessing AI in design and diagnostics.
Investment is another hurdle. While more than two-thirds of businesses plan to invest over the next 12 months, often spending upwards of €300,000 on equipment, premises, technology, and staff training, 94% report doing so without any grant support. FTMTA leaders say reforms to Enterprise Ireland and local grant schemes are urgently needed.
Skills shortages also remain a key constraint, with many firms reporting difficulty recruiting welders and technicians, and some turning to Southeast Asia to fill gaps. Rising accommodation costs are making it harder to attract and retain skilled labour — linking the industry’s future to Ireland’s wider housing and workforce challenges.
FTMTA president Maurice Kelly said: “Our industry is ready for growth, but achieving it will require partnership. We need recognition at enterprise level, support to promote the opportunities this sector offers, and investment in training the next generation who will design, build and service the technologies driving Irish agriculture forward.”
The report also highlighted challenges with manufacturing costs. High machinery prices have also driven a surge in leasing, however, lenders warn that red tape is slowing approvals. Leasing sector analysis shows strong demand, but lenders warn that red tape is slowing approvals as they now find themselves requiring “deep sectoral knowledge” to keep pace with technology.
The report calls for contractors to be included in Targeted Agricultural Modernisation Schemes (TAMS), warning that the current rules have now become "outdated" as contractors now carry out an increasing amount of slurry work and therefore face the biggest machinery cost burden, yet find themselves blocked from receiving TAMS support.
As a result, the report warns that contractors must be added to TAMS and reference costs must be urgently revised, or slurry emissions targets could stall.
FTMTA chief executive Michael Farrelly added: “At a time when reliance on foreign direct investment is being questioned, this report proves that the farm machinery industry is a secure, indigenous success story powering rural communities and Ireland’s low-carbon future."
