Irish farm profits increased by 32.5 per cent last year, the Central Statistics Office has said.
Goods output increased by €913 million as the price of milk, cattle, pigs, sheep and cereals increased.
Expenses including feeding stuffs, fertilisers, contract work and forage plants cost farmers some €4.8 million last year, an increase of 11.8 per cent on 2010.
The operating surplus across the farming sector, comprising profits earned by farmers and agricultural contractors, increased by 32.5 per cent from €1.86 million to €2.47 million during the period.
The number is calculated “before deductions for interest payments on borrowed capital and before deductions for land annuities and for rent paid by farmers to landowners for the use of their land,” the CSO stated. Depreciation factors and farming subsidies are also taken into account.
Irish Farmers’ Association president John Bryan said the figures highlighted a buoyancy in the sector which was “making a significant contribution” to maintaining jobs and small businesses across the rural and wider economy.
“However, it must be remembered that Average Farm Incomes in 2011 will still be around €21,500. The cost of doing business remains a concern.”
Mr Bryan said increased economic volatility, downward pressure on some commodity prices and higher production costs could result in pressure on farm incomes in 2012.
The data is from the second of three reports that the CSO releases on agricultural estimates each year. The final estimates for 2011 will be released in June of this year.