The short-term benefit to NI farmers of sterling weakening against the euro following the Brexit vote was evident on Tuesday, with DAERA publishing provisional figures indicating that total income from farming (TIFF) in NI increased by 22% last year to £244m.

The most significant factor in TIFF is the 18% increase in EU direct subsidies (Basic Payment, Greening and Young Farmers’ Topup) in 2016. The £39m subsidy boost is down to payments being converted in September 2016 at €1 = £0.85228, compared with €1 = £0.73129 the year before.

Noteworthy is that TIFF is £32m below total direct subsidies, although the gap has narrowed slightly from £37m last year. Final figures published on Tuesday show that TIFF fell by 36% in 2015 to a six-year low of £199m, meaning increases in 2016 are from a low base.

Output

Total gross output from NI agriculture remained unchanged in 2016 at £1.76bn. Within this, dairy output fell by 6% to £452m on the back of milk output and prices both falling by 3% last year to 2.2bn litres and 20.2ppl respectively.

Value output from cattle rose by 6% to £425m, predominantly due to a 7% increase in the number of cattle killed last year. Sheep sector output increased by 15% to £73m on the back of a 14% increase in the average producer price to £3.91/kg and a 2% increase in the number of lambs slaughtered.

Reduced volumes of cereals saw output value for field crops decrease by 2% in 2016 to £57m. The pig sector value output increased by 6% to £122m, the egg sector grew by 9% to £97m and the value of poultry output reduced by 1% to £246m.

Incomes

Estimates for 2016/17 forecast an increase in average farm incomes across sectors. The pig sector is forecast to see the largest increase in average income at 36% to £25,165. Dairying should see the smallest increase in average incomes by 16% to £13,863, having had the sharpest average income drop in 2015/16 at 74%.

Total value of gross inputs in NI agriculture decreased by 2% in 2016 to £1.35bn. Feedstuff costs accounted for 53% of inputs and reduced by 2% due to a 3% reduction in volumes and 1% reduction in cost per tonne.

A 16% reduction in the average price paid per tonne for fertilisers partly offset an 11% increase in the volume purchased, meaning total fertiliser cost fell by 7% in 2016.

Further analysis of 2016 agricultural incomes will feature in this week’s edition of the Irish Farmers Journal and on www.farmersjournal.ie.

Read more

Teagasc sees 5% ROI farm income growth next year

Income crisis must be addressed