Input costs look set to increase by more than one third on Irish farms this year.

Preliminary estimates from the Central Statistics Office (CSO) indicate a 34.7% rise in the agricultural input price index for 2022.

And while price increases for milk and cereals will insulate dairy and tillage enterprises from the impact of the higher costs, drystock farmers and pig producers will see their incomes significantly eroded.

The projected increase in the input index is due mainly to rises in fertiliser prices (121.3%), energy costs (42.9%) and feed (28.8%).

A 20% hike in the price of plant protection products and an 11.8% increase in the charge for seed have also contributed to overall hike in input costs.

Lowest rise

The lowest rise in preliminary estimates was observed in veterinary expenses, which increased by just 2.8%.

On a positive note for farmers, preliminary estimates indicate that the agricultural output price index will be 26.4% higher in 2022.

This is being driven mainly by a 43.3% lift in returns for milk and a 40.7% increase in cereal prices.

However, price increases for cattle, sheep, pigs and poultry are running well behind the hike in input costs.

The preliminary figures indicate that cattle will increase by 17.6%, pigs by 15.4%, poultry by 4.4% and sheep by 2.4%.

The preliminary annual indices are compiled by using the published monthly indices from January to August, and forecast estimates for September to December.

A wide variety of sources are used to compile the figures, including direct CSO surveys and administrative data from the Department of Agriculture.