Farm incomes economy boost

Editorial Department • Published 2 Feb 2012 13:00 0 Comments

The agricultural industry has the potential to contribute to the Northern Ireland economy following the publication of farm incomes which shows an increase of 20.8 per cent of the total income from farming in 2011.

Welcoming the rise in farm incomes, UFU President John Thompson said; "This vindicates our message to the Northern Ireland Executive that agriculture is a solid performer at the heart of our economy and it has enormous potential to grow even further. This is a very difficult time for our regional economy but the agri-food sector has been one of the few sectors to perform strongly. It is encouraging to see farm incomes on the rise and no doubt farmers will re-invest in their businesses if possible".

"However obvious challenges remain for farmers. The Single Farm Payment remains a very significant element of farm incomes and without this support, it is clear that the marketplace would not deliver proper returns for producers.

"The high cost of production is also undermining profitability and the recent drop in the value of the Euro is another concern. Also, while some individual sectors of the industry enjoyed a successful year in 2011, others did not. So while the figures are positive, and there is a lot to be optimistic about in the industry, we will nevertheless continue to advocate better regulation for the industry and a fairer distribution of returns in the food chain so that the recovery in the agri-food sector can be truly felt at farm level".

Agriculture Minister, Michelle O'Neill also welcomed the increase in agricultural income for 2011.

The Minister said: "It is encouraging to see a rise in overall farm income, which shows that the agricultural industry is continuing to do well in these difficult economic times."

She added: "However, the continuing high costs of inputs, such as feed, fertilizer and fuels, and weakening euro will continue to challenge the industry."

The Minister continued: "It is also encouraging that in 2011 farm income was greater than Single Farm Payment (SFP). However, SFP still represents 87% of farm income which underlines the importance of the forthcoming negotiations on the reform of the Common Agricultural Policy (CAP). There is no doubt that we need a strong, well funded CAP that provides support and fosters improved competitiveness without overburdening us all with red tape and I am committed to fighting for these outcomes in the ongoing CAP reform negotiations."

Provisional figures indicate that the 'Total Income from Farming' (TIFF) in Northern Ireland increased by 20.8% (14.8% in real terms) from £255 million in 2010 to £308 million in 2011. TIFF represents the return on own labour, management input and own capital invested for all those with an entrepreneurial involvement in farming.

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This article appeared in Impartial Reporter 02 Feb 12

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