Age Structure of Irish Farming Better Than EU Average

10 April, 2003

The age structure of Irish farmers has improved during the past decade, a Teagasc economist has stated.

Liam Connolly, Head of the Teagasc National Farm Survey, told a conference in Cork that Irish farmers are now younger than their EU counterparts.

"The 2000 Census of Agriculture shows that 13% of Irish farmers are under 35 years compared to an EU average of 11%. Twenty per cent of Irish farmers are over 65 years compared to 28% for the EU as a whole"

"While the proportion of Irish farmers under 35 has not changed since 1991, the number over 65 has declined from 23% to 20%", said Liam Connolly.

Mr Connolly also said that the contribution of agriculture to the Irish economy, at 3.5% of GDP, is twice that of the EU average. Agri-food exports account for over 8% of total foreign earnings.

"While farmer numbers declined by 17% during the 1990s they still account for 6.5% of the total workforce. When employment in the services, processing and marketing sectors is included, the agri-food industry now accounts for 10% of total employment", he said.

He said that projected average farm income for 2002, at just over €14,000, is similar to the figure achieved in 1995. When inflation is taken into account, average farm incomes have declined by almost 20% since 1995.

"However, because of the huge variation in incomes and the growing contribution of non-farm income sources, average incomes can give a misleading impression of the current state of farming."

"In 2001, the average income of dairy and tillage farmers was on a par with the average industrial wage of €24,500. In contrast, sheep and beef farmers had an average income of only one-third of industrial workers," said Mr Connolly.

"An indication of the low income problem on beef and sheep farmers can be seen from the Teagasc Farm Survey for 2001. It showed that these farmers, while accounting for 66% of all farms nationally, earned just 36% of total farm income. Dairy farmers, which make up 27% of all farms accounted for 54% of income," he added.

The Teagasc National Farm Survey shows a total of 47,000 full-time farms – with a minimum of 0.75 labour units. These had an average income of €31,000. Sixty per cent of these farms are in dairying, 32% in beef/sheep and 8% in tillage.

"The average income of the remaining 73,000 part-time farms was €5,900 in 2001. Almost 90% are involved in beef/sheep and on 80% of these farms the farmer and/or partner had another source of income either from off-farm employment, pension or social assistance."

"On 45% of all farms, the farmer and/or partner now have an off-farm job, compared to a figure of 32% a decade ago. When income from pension or social assistance is included, farming is now the sole source of income on just 36% of all farms," said Liam Connolly.

The full report, An Analysis of Farm Structures and Incomes can be downloaded here.