Two-thirds of the 250 farmers that took part in April's Agri Pulse survey said they had seen input costs rise over the past year. Some 32% said their profitability had improved, 42% saw no change and 25% said it had deteriorated. This last figure is twice as high as in the previous survey in August 2017.

Looking to the next three years, 38% said they were planning to expand their business – down from 55% last year. One in four indicated they wanted to scale down, compared with only 14% last August. These were mostly older farmers.

Brexit is clearly weighing heavily

“The mood was subdued in April, with farmers downgrading their assessment of the current situation," said Loretta O’Sullivan, group chief economist at Bank of Ireland.

"Sentiment has dropped across a number of fronts, which isn’t surprising given the recent environment. Brexit is clearly weighing heavily, with seven in 10 respondents feeling that it will negatively impact their business."

Most farmers surveyed think farmgate prices will remain stable in the coming year, though a higher proportion of dairy farmers said they expected milk price drops.

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One in four farmers looking to scale down – survey

Higher costs, a difficult winter and the threat of Brexit mean fewer farmers have improved their income or made plans to expand, according to a Bank of Ireland survey.