With the Recent Teagasc National Farm survey results flooding the newsstands, the ICSA gave their verdict on the results.
The survey found that dairy farmers still receive an approximate income of about €52,000 a year. This in comparison to the €24,000 received by beef farmers.
In a year where dairy farming was said to be undergoing a decline, and with farmers said to be struggling, they still fared almost twice as good as tillage and beef farmers who earned significantly less.
The president of ICSA, Patrick Kent, said “On a per hectare basis, the income of €924 for dairying was twice the income for tillage and beef farmers, two and half times better than suckling and three times the sheep income per hectare.”
He also questioned as to why there was an emphasis put on the dairy sectors in their times of struggle while the tillage, sheep and cattle farmers were left to struggle, he said “The figures call into question the prioritisation of dairying by Brussels who jumped hoops to provide crisis funding for dairying while remaining laid back about the struggles faced by cattle, sheep and tillage farmers. At least the Minister for Agriculture here used the funds for a loan scheme available for all farming sectors but it is clear that dairying is the only sector where income supports are not vital. In fact, the results demonstrate loud and clear that the focus of CAP supports for both pillars will have to be re-focused to a much greater extent on low income sectors.”
Mr. Kent also spoke of his optimism for the future of the dairy industry, suggesting 2017 will be a good year for dairy farmers with prices set to increase. He said “With the recovery in milk price, it is likely that income figures for dairying will power ahead in 2017 again”.
He also said that although the dairy sector will thrive, other sectors look set to suffer, “The cattle, sheep and tillage sectors have no prospect of significant improvement. Annual incomes averaging as low as €16,011 for sheep farmers and a paltry €12,908 for suckler farmers offer evidence of the stark reality for the majority of our cattle and sheep farmers.”
Mr. Kent said that farmers are not getting their fair share of profit margins and warned that there is no room for processors and retailers to squeeze out better prices for themselves,“The evidence is clear that farmers are getting far too little share of the margins from the food chain. Now, more than ever, there is simply no room for processors and retailers to keep squeezing cattle and sheep producers on price when the stark reality is the vast majority of such farms would generate no income without direct EU supports.”
He concluded by calling for the implementation of a new strategy within the EU to help tillage farmers especially in their time of great need, “We also need a strategy at EU level to improve the position of tillage farmers at a time when global cereal inventories are at an all-time high. This is not just about CAP supports but also about a sensible strategy on increasing rather than decreasing demand for crop based biofuels grown in Europe.”
Source: That’s Farmers
Link: http://www.thatsfarming.com/news/icsa-teagasc-national-farm-survey-dairy
