The IFA made an operating loss of just under €2m for its financial year which runs to the end of March 2020, according to accounts presented to the IFA council on Tuesday morning.

This is the fourth consecutive year that the IFA has reported an operating loss, as annual expenditure continues to outstrip income.

The IFA’s accounts show the organisation’s income for the year was down 5% to €15.2m, while expenditure remained the same as previous years at €16.3m.

The IFA also took an exceptional charge of just over €1.1m in 2019 that was related to once-off restructuring of staff costs.

Excluding this once-off charge, the IFA made a underlying operating loss of just under €840,000.

Income and expenditure

The IFA’s accounts show income generated from membership fees was generally steady last year at €5.7m. However, income from farmer levies dropped 11% last year to less than €2.8m.

On the expenditure side, staff costs at the IFA increased 4% last year to €5.6m. Staff costs account for over one third of spending by the IFA.

Expenses and costs to IFA volunteers was down 14% in the year to €1.1m.

Overall, the accounts show the value of net assets on the IFA’s balance sheet fell 24% last year to €11.4m.

Confident

Despite the heavy losses last year, IFA’s national treasurer Martin Stapleton said he was confident the association had taken measures this year that would address the imbalance between income and expenditure.

Stapleton said increased membership and an early retirement programme rolled out this year would result in the IFA returning to profitability in future years.

He said the IFA balance sheet remains strong, with assets of €11.4m.

“The National Council is confident that with the measures taken, the Association will be in a position to achieve modest growth in these reserves over the coming years,” said Stapleton.