Farm Investment in 2001 Higher than Planned - Teagasc Survey
Issued 11thDecember 2001
Farmers invested £372m in machinery, buildings, land and quota purchase during the past year, according to the results of a Teagasc survey published today.
The survey, conducted among 1,100 farmers, shows that investment in machinery was more than three times greater than indicated by farmers in a similar survey 12 months ago.
Teagasc economist, Liam Connolly, said that in the past farmers have always understated planned investment and 2001 was no exception with an actual investment of £156, compared to a planned investment of just £48m. He said the actual investment in buildings, quota and land purchase in 2001 was close to that planned in the autumn of 2000.
The survey shows that farmers plan to invest a further £270m in 2002. This includes £55m in machinery. Based on past trends, Mr Connolly stated that actual machinery investment in 2002 could be well over £100m. Also, the reintroduction of grant-aid for farm buildings could see the actual investment in 2002 exceeding the figure of £140m planned by farmers.
The Teagasc survey, which was conducted in recent weeks, also shows that in spite of the increased profitability of sheep production in 2001, farmers intend to reduce the sheep breeding flock by a further 3% in 2002. If these intentions are implemented, it will be the ninth consecutive year of decline in the sheep breeding flock.
The survey shows that dairy farmers intend to increase cow numbers by around 2% while there will be a small increase in beef cow numbers, particularly on farms in western counties.
Of the 29,000 farmers currently involved in dairy farming, 40% have indicated that they plan to increase their milk quota next year. Just 4% intend to reduce quota or cease milk production.
The survey shows an increase of over 25% in the area planted to winter wheat, reflecting the exceptionally good sowing conditions of recent months. Winter barley sowings are also up by 20%. The big casualty is likely to be spring wheat with a likely reduction of almost 25% in acreage while the major tillage crop, spring barley, is likely to be back by around 7%. Total tillage acreage is expected to increase by 3%.
Following the very favourable performance of potato production last year, the survey shows an increase of 4% in acreage in 2002.
