ALTHOUGH AVERAGE farm income increased last year by 48 per cent, researchers have found 37,000 Irish farms are classified by it as being “economically vulnerable”.
The figures from the Teagasc National Farm Survey found the average income figure for the farming sector was €18,000 last year after two years when income declined on Irish farms. These figures are broadly in line with those produced by the Central Statistics Office earlier in the year.
“While the increase in farm incomes of 48 per cent from 2009 to 2010 is substantial, it should be borne in mind that this simply represents a recovery in the sector, bringing incomes back in line with those recorded in 2008,” said Dr Thia Hennessy, head of the Teagasc survey.
As in previous years, she said not all farmers had experienced such a significant jump in income. Dairy and tillage farmers had benefited significantly from the recovery of their markets globally and income on these farms had doubled from 2009 to 2010.
There was little improvement in cattle and sheep incomes in 2010. These drystock farms, which represent the majority of Ireland’s farming population, experienced an increase in income of about 6 per cent, she said.
The average figure conceals a large variation in income across the different farm sectors and enterprises and the survey showed average farm income on the 30,000 more commercial full-time farms was in the region of €43,000.
The survey, which involves over 1,000 farming families supplying information to Teagasc, found last year’s increase in income meant 26 per cent of farms were now viable businesses. This is up from 18 per cent the previous year but contraction in off-farm opportunities meant the proportion of farms in the “sustainable” category had decreased, with 37,000 farms which could now be described as “economically vulnerable”.
The number of farm households where the farmer and/or the spouse had work off the farm declined to less than 50 per cent.
It found the number of farmers or spouses with off-farm employment last year had dropped from a high of 58 per cent to 49 per cent last year.
The number of farm holders with off-farm jobs decreased from a high of 42 per cent to 30 per cent.
This decline in off-farm employment has serious implications for farm households. Despite the substantial recovery in farm incomes in 2010, almost 40 per cent of farm households remain in an economically vulnerable position, meaning the farm business is not economically viable and neither the farmer nor the spouse works outside of the farm.
The survey showed the average income on dairy farms increased by 92 per cent last year to approximately €47,000, driven by a 30 per cent increase in dairy prices.
Tillage farms more than doubled their income to an average of €33,500, as a result of higher grain prices globally.