The CSO has revised its estimate of farm income for 2013.

In December, the advance estimate predicted a 1% drop in operating surplus, effectively its measure of farm income, for 2014. The preliminary estimate has now been issued, and has upwardly revised income by almost €150m. This transforms the slight drop in farm income to a 5% increase. Total income is now estimated at €2.362bn.

Almost all of the increase is due to higher subsidies being reported. Initially, subsidies, which include all direct payments to farmers, were predicted to drop by almost 10% in 2014 over the previous year. The latest indication is for payments to reach €1.46bn, an increase of €117m. This is most likely due to a number of direct payments being approved.

The other key change sees output value from the livestock sector rise by almost €50m, mainly due to the increase in beef prices following the IFA protests in November. Sheep prices also increased late last year.

Dairy output

The fall in grain prices saw the value of the cereals sector down by €56m, a near 20% drop.

Input costs fell last year, particularly feed and fertilizer. It must be borne in mind that feed and fertilizer usage was very high in 2013 due to the fodder crisis. Feed prices, both forage and meal, also spiked. Feed costs were down a whopping €280m, a 17% drop. Feed still cost farmers €1.32bn last year. Fertilizer costs fell almost 8% to €565m, largely due to a 5% drop in the volume purchased, with a price reduction further trimming the overall bill. Farmers are still spending over half a billion euro on fertilizer annually.