Teagasc Publishes Farm Income Figures for 2003
4 August, 2004
The Teagasc National Farm Survey for 2003 shows an increase of just 0.9% in average farm incomes. Average family farm income in 2003 was €15,054 per farm, compared to €14,917 in 2002.
However, the survey shows that income on full-time farms increased by almost 5% in 2003. A total of 44,000 farms are classified as full-time and they earned an average income of €29,000 in 2003, compared to €27,700 in 2002.
Just under 10% of farms, or a total of 10,300, had an income from farming in excess of €40,000. Three out of four of these farms were involved in dairy farming.
The survey is based on an analysis of accounts kept on a representative sample of 1,210 farms selected by the CSO. The total number of farms represented in 2003 was 114,500. Very small farms are excluded from the survey, as are pig and poultry farms.
The increase of 0.9% in average incomes resulted from a decline of 0.4% in output combined with a 1% decline in total costs.
Commenting on the results, Liam Connolly, Head of the Teagasc National Farm Survey team, said the 2003 figures again highlight the enormous variation in farm incomes, which creates major difficulties in using one overall average figure to represent the sector.
“The 2003 results again show two distinct groups in Irish agriculture. The first group are small, part-time farms engaged in extensive beef and sheep production, yielding low profit margins and highly dependent on direct payments and off-farm employment. In 2003, almost 40% of farms earned an average income of less than €6,500 and 86% of these were part-time, beef and sheep farms with another source of income”.
“The second group are the more dynamic full-time farms, which represent the commercial or viable sector of Irish agriculture and are mainly involved in dairy and tillage farming. In 2003, these full-time farms accounted for just under 40% of all farms and had an average farm income of €29,000,” said Liam Connolly
Farm Systems
As in previous years, dairy farming generated the highest returns, with an average income of €30,100, an increase of 7% on 2002. Income from tillage farming averaged €26,282, an increase of 22% on 2002, which was a very difficult year for the tillage sector.
Incomes from sheep farming increased by 4%, to an average of €12,900. This was the fourth consecutive annual increase in sheep incomes. Beef farming again generated the lowest average incomes. Incomes from beef rearing systems declined by 5%, to an average of €7,300 while income from other beef systems declined by 15%, to an average of €8,100.
Direct Payments
Direct payments showed a minimal increase of 0.3% in 2003 to an average of €13,500 per farm. As a percentage of farm income, direct payments remained at 90% in 2003, identical to that of 2002.
Direct payments as a percentage of farm income ranged from 28% on specialist dairy farms to 121% on sheep farms and 178% on farms with other beef systems. Therefore, on beef and sheep farms market returns were not sufficient to cover production costs. As in previous years, the Rural Environment Protection Scheme (REPS) made a sizeable contribution to incomes on both beef and sheep farms.
Off-Farm Income
The survey shows that on 50% of all farms, the farmer and/or spouse had an off-farm job, compared to 48% in 2002. On 34% of farms, the farmer held the off-farm job, compared to 35% in 2002. The highest incidence of off-farm employment was on beef and sheep farms. Overall, on almost 80% of farms the farmer and/or the spouse had some other source of income resulting in only 20% of farms being dependent on farming solely for their livelihood.
Contribution of Women
For the first time, the 2003 Teagasc survey contains information on the contribution of women to labour on the farm. It shows that, on average, women contribute 13% to total labour input in farming. This ranges from 5% on tillage farms to 14% on dairy farms.
