Farming Sectors Outlook

Posted on: 25/07/2012

Good and Bad News
Teagasc predict Farm incomes to fall but not all

LAST YEAR’S 30 per cent increase in farm incomes will be largely wiped out this year because of difficult weather conditions, according to a Teagasc mid-year outlook presented yesterday.

Dairy farmers will be hardest hit with a 30 per cent drop in income forecast. Teagasc economist Dr Thia Hennessy said she expected farm incomes would fall back to 2010 levels because of the high summer rainfall in Europe combined with the US drought. The bad weather at home would result in farmers buying more feed for cattle and the US drought was resulting in an increase in grain and animal feed prices internationally.
Tillage farmer incomes were expected to remain more or less the same this year while beef farmers could expect to see an increase. When combined with the 30 per cent drop in dairy farmers’ incomes last years gains would be mostly eroded.

Fellow economist, Dr Fiona Thorne, said feed prices for the livestock sector were expected to increase by 15 per cent. Tillage farmers would see a drop in spring barley yields of 10-22 per cent, while the winter wheat yield was expected to fall 15-27 per cent. Both fuel and electricity prices were expected to increase by 8 per cent this year.
Research officer Trevor Donnellan said milk prices would fall by 15 per cent this year, but the outlook for beef farmers was more optimistic with gross margins expected to increase by 15-30 per cent.

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