The Central Statistic Office (CSO)’s regional accounts for agriculture in 2015 show that 87.9% of agricultural operating surplus came from net subsidies in the midland region grouping counties Laois, Longford, Offaly and Westmeath. By contrast, 36.6% of operating surplus came from subsidies in the mid-east (Kildare, Meath and Wicklow) and Dublin.

At the national level, just over half of agricultural income came from subsidies, with a clear divide between the border, midland and western regions – where they account for over 70% of operating surplus – and the south and east – where they represent just over 40%.

Share of payments down

The figures for 2015 reflect the fact that farm payments diminished last year as a result of the new CAP. In previous years, net subsidies represented more than 100% of farm income in the midlands, meaning that farmers in the region operated at a loss and compensated it with payments before they could draw an income.

The CSO calculates the agricultural operating surplus as the income left after inputs, employees and investment amortisation are paid for. Net subsidies consist of farm payments net of taxes paid by farmers.

The regional accounts for agriculture also show that while farm incomes grew in 2015 compared with 2014, as previously reported, this was not the case everywhere. The farming operating surplus actually fell last year in the mid-west and south-west.

The regional accounts published this week do not reflect the worst of the commodity price crash recorded in 2016.

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