The cost of doing business for farmers has increased over the last 12 months as inputs such as feed and fertiliser have increased in price.

Between June 2018 and June 2019 there was a 7% rise in fertiliser prices and a 4.6% rise in feed stuff prices. The latest CSO figures show that there has been a 3.1% rise in input prices over the last year.

While the prices paid to farmers as a whole have increased by 1.8% from June 2018 to June 2019, some sectors have performed stronger than others. The price paid for cattle fell by 7.8% while sheep prices dropped by 9.2%.

Wool prices have also dropped by 17.9%, the most significant decline for any category measured by the CSO.

Increases

In contrast pig prices have surged by 22.5% on the back of an outbreak of African swine fever in China. Pig farmers had endured a tough period prior to recent increases in price.

Tillage farmers have also seen an improvement in the prices paid for crops. Cereals are up 43.1% over the last year and potatoes have more than doubled, up 126.5% over the same period.

Margins squeezed by falling farmgate prices and rising fertiliser and feed costs

Crops area decline appears to have ceased

Farmers’ costs climb as returns worsen for cattle and sheep

The tillage and pig sectors have seen rises in prices paid to farmers, while sheep and cattle returns have fallen over the last 12 months.