Farmers endure 28% income drop

NEW figures have shown how farmers have endured a 28% drop in income this year.

The latest drop, revealed in figures released by the Irish Farmers’ Association yesterday, come on top of a 13% fall last year.

The IFA have claimed government cuts, greedy retailers and uncompetitive costs were all contributing to the worst farm income crisis in a generation.

IFA President Padraig Walshe said despite many farm families facing desperate financial problems the Government remained in denial and were pressing ahead with severe cuts across vital farm schemes this year.

“It is long past time that Agriculture Minister Brendan Smith stood up and was counted around the cabinet table,” he said.

Mr Walshe said the minister must publicly address the income crisis facing farmers, and reassure hard-pressed farm families that rural environment protection, disadvantaged areas and suckler cow welfare schemes would be maintained and fully-funded going into 2010.

“These schemes are essential to maintain productive agriculture through this crisis, and 270,000 jobs in the economy that depend on farming,” he said.

Mr Walshe said the income reductions in the past two years have left the average farm income at only €13,000 in 2009, with the income of full-time farmers at €16,000.

“This income must provide for family living costs, pension payments and bank repayments, and includes all of direct payments received by farmers,” he said.

The IFA leader said average farm income is now one quarter of the average salary in the public sector, which was on strike yesterday.

Mr Walshe accused some political and union leaders of living in cloud cuckoo land and misleading the public into believing that there is some crock of gold in the private sector that can be tapped to meet the shortfall in the public finances.

“The facts are that most farmers and small businesses are hanging on by their fingernails and the Government must come forward with immediate action that improves our competitiveness by reducing energy, labour, waste disposal and bureaucracy costs,” he said.

Mr Walshe also accused the Government and state agencies, including the Competition Authority and the National Consumer Agency, of being complicit in allowing the dominant retail multiples to “cannibalise farm incomes” and undermine the livelihoods of farm families.

He also said it was not good enough for processors to use the excuse of retailers and disastrous returns from the marketplace.

“Dairy and meat processors must stand up for primary producers and stop giving away our produce to greedy retailers,” he said.

Mr Walshe warned retail bosses that farm incomes are on the brink, and unless the prices they pay start to reflect the cost of production and a margin for farmers, they will be held directly responsible for the destruction of food production here.