Severe Decline in Dairy and Tillage Farm Incomes in Ireland During 2023
Source: The DairyNews
The latest report from the Teagasc National Farm Survey presents a grim picture for Irish agriculture, revealing the lowest average incomes for all farm systems in several years.
Notably, dairy farm incomes plummeted by 69%, and tillage farm incomes decreased by 71% compared to 2022. The significant reduction in income is attributed to the sharp decline in milk and cereal prices, coupled with lower production volumes amid persistently high input costs.
According to Teagasc Director Frank O’Mara, the year 2023 has been notably dismal for the sector. The average income for dairy farms dropped to just under €49,500, reflecting a decrease of more than €105,000 fr om the previous year. Similarly, tillage farms saw their average income reduce to €21,400, a fall of over €52,000.
The survey, which represents almost 85,000 farms across Ireland, points to a downturn in global dairy commodity prices and an increase in cereal production globally, which have contributed to the pressing challenges faced by Irish farmers. Moreover, adverse weather conditions in Ireland during the second half of the year exacerbated the situation, affecting tillage yields, grazing conditions, and silage production.
Emma Dillon, Senior Research Officer at Teagasc, noted that the steep income drops were anticipated due to the drastic reduction in milk and cereal market prices and overall lower production levels. She highlighted the difficult environment of high input costs and the impact of poor weather on production costs, particularly in dairy and grassland systems.
The Department of Agriculture acknowledged the challenging year, pointing to geopolitical events and market volatility as contributing factors to the decline in Family Farm Incomes—the first such drop in five years. In response, the government promises continued support through the €10 billion CAP Strategic Plan and specific aids wh ere necessary.
However, the reaction from the farming community has been one of dismay and frustration. Denis Drennan, President of the Irish Creamery Milk Suppliers Association, criticized the government for its lack of action in addressing the collapse in farmer incomes, deeming it a deliberate policy failure. Similarly, the Irish Farmers' Association highlighted the fragility of farming, emphasizing the unsustainable conditions under which food production is expected to continue.
As the sector faces these unprecedented challenges, calls for increased support and a reevaluation of agricultural policies are growing louder, underscoring the urgent need for actionable solutions to stabilize and sustain Ireland's farming industry.
According to Teagasc Director Frank O’Mara, the year 2023 has been notably dismal for the sector. The average income for dairy farms dropped to just under €49,500, reflecting a decrease of more than €105,000 fr om the previous year. Similarly, tillage farms saw their average income reduce to €21,400, a fall of over €52,000.
The survey, which represents almost 85,000 farms across Ireland, points to a downturn in global dairy commodity prices and an increase in cereal production globally, which have contributed to the pressing challenges faced by Irish farmers. Moreover, adverse weather conditions in Ireland during the second half of the year exacerbated the situation, affecting tillage yields, grazing conditions, and silage production.
Emma Dillon, Senior Research Officer at Teagasc, noted that the steep income drops were anticipated due to the drastic reduction in milk and cereal market prices and overall lower production levels. She highlighted the difficult environment of high input costs and the impact of poor weather on production costs, particularly in dairy and grassland systems.
The Department of Agriculture acknowledged the challenging year, pointing to geopolitical events and market volatility as contributing factors to the decline in Family Farm Incomes—the first such drop in five years. In response, the government promises continued support through the €10 billion CAP Strategic Plan and specific aids wh ere necessary.
However, the reaction from the farming community has been one of dismay and frustration. Denis Drennan, President of the Irish Creamery Milk Suppliers Association, criticized the government for its lack of action in addressing the collapse in farmer incomes, deeming it a deliberate policy failure. Similarly, the Irish Farmers' Association highlighted the fragility of farming, emphasizing the unsustainable conditions under which food production is expected to continue.
As the sector faces these unprecedented challenges, calls for increased support and a reevaluation of agricultural policies are growing louder, underscoring the urgent need for actionable solutions to stabilize and sustain Ireland's farming industry.
