Agricultural output this year fell by 4 per cent, and the value of agricultural goods fell by some 3.5 per cent, new figures show.
But the Central Statistics Office's (CSO) first estimate for 2005 shows that the operating surplus in agriculture increased by 19.8 per cent before deductions for interest payments and land rental.
In total, the value of cattle output decreased by €10 million or 0.8 per cent this year. The CSO said the price increase for cattle was offset by fewer slaughterings.
Sheep output decreased by 10 per cent or €20 million s a result of a decline in sheep prices, and the value of milk output decreased by 5.7 per cent or €81 million due to a drop in both price and volume.
Cereal output was also down, showing a drop in value of some €47 million or 26 per cent due to a drop in production.
The CSO said energy costs were up this year by €22 million, or 9.1 per cent, mainly due to price increases.
The structure of agricultural subsidies changed significantly this year due to reforms in agricultural policy and the introduction of the Single Payment Scheme for farmers to replace headage payments.
According to the CSO, the net value of subsidies on production increased from €594.3 million in 2004 to €1,689.4 million this year due to the changes in the system. The net value of subsidies on products fell from €878.5 million in 2004 to €405.8 million in 2005 - but this figure relates to output from previous years.
The CSO said it is likely the gross value of subsidies on products will be "negligible" next year.
Updated figures will be published in February and June 2006, the CSO said.