Teagasc Survey Shows Decline in Farm Income in 2002
28 July, 2003
The Teagasc National Farm Survey for 2002 shows a decline of 5.8% in farm income, bringing average income per farm to €14,925. Average income in 2001 was €15,840.
The income decline resulted from a drop of over 2% in the value of output.
Farm production costs increased by 3.5%. However, the level of direct payments received by farmers in 2002 increased by 17%, which partially compensated for the decline in returns from the marketplace.
The survey is based on an analysis of accounts kept on almost 1,200 farms. The total numbers of farmers represented is 116,400. Around 20,000 small farmers are excluded as are pig and poultry producers.
Variation
The survey shows an enormous variation in incomes between the larger dynamic full-time farmers and the smaller part-time group, who are highly dependent on direct payments and off-farm employment.
It shows a total of 44,500 full-time farms – with a minimum of 0.75 labour units. The average income of these farms in 2002 was €27,758, a decline of 10% on their income in 2001.
According to Liam Connolly, Head of the Teagasc National Farm Survey, these full-time farms, which account for 40% of all farms, represent the more dynamic, commercial sector of farming. About 60% are involved in dairying, with the balance involved in tillage, beef and sheep production.
The remaining 60% of farmers had an income from farming of just €6,590 in 2002. The majority are part-time beef/sheep farms and 82% had another source of income.
Off-farm Income
The survey shows that, on 48% of farms, the farmer and/or spouse had an off-farm income. On 35% of farms, the job was held by the farmer, an increase of 2% on 2001.
Farm Systems
The largest income decline took place on dairy farms. Average dairy income was €28,100, a drop of 18% on 2001.
Income in tillage farming, declined by 9%, to an average of €21,900. Larger tillage farmers suffered an income decline of up to 23%.
Average income from beef increased in 2002, albeit from a very low base. Incomes from cattle rearing systems increased by 7% to an average of €7,750, while incomes from other beef systems increased by 22%, to an average of €9,520. Incomes in sheep farming, at €12,350, were 2% up on 2001.
Direct Payments
The survey shows a big increase in the contribution of direct payments to farm income. Direct payments made up 90% of average income on all farms represented by the survey, compared with 72% in 2001. The final increases in direct payments under the EU Agenda 2000 agreement were paid in 2002.
Direct payments accounted for over 100% of income on beef and sheep farms. In tillage farming, they accounted for 110% of income, reflecting lower yields and reduced prices. In dairy farms, direct payments accounted for 33% of income, up from 22% in 2001.
Click here for the summary of the National Farm Survey 2002.
