Teagasc national farm survey data for 2021 again shows the serious income challenges within the suckler, beef finishing and sheep sectors, and their reliance on direct payments. These payments account for almost 100% of family farm income on beef and sheep farms, while on suckler farms they accounted for 150% of income and almost 50% of gross output.

In this context, it is incredulous to think that no economic modelling was carried out to assess the impact of new CAP policies on the income of these farmers. Clearly this is something that the Teagasc beef open day in July must fully address. The figures further reinforce why many of these low-income farmers will have little choice but to follow the direct supports into organic farming and Teagasc advice must reflect this.

While not to the same extent, tillage farmers are also heavily exposed to any shift in direct payments. Despite incomes increasing by 77%, supports still accounted for almost 50% of this.

Delivering an average family farm income of €100,000, dairy continues to provide a solid income base. There is a natural temptation to play down the performance of the sector but this should be avoided. Key to sustaining this sector will be its ability to attract vibrant young people on to dairy farms. In this regard, we should amplify the potential of the sector to provide an excellent career. The figures also reinforce why this sector cannot be shut off to further generations of farmers.

At the same time, it must be recognised that in the context of developing a future vision for agriculture, the income divide between sectors and the extent to which they rely on direct supports should shape the debate on future distribution of CAP payments.

Farmers deserve full clarity on nitrates

Minister for Agriculture Charlie McConalogue announced in March that the nitrates derogation was secured up to 2025. / Finbarr O’Rourke

When Minister for Agriculture Charlie McConalogue announced in March that the nitrates derogation was secured up to 2025, many dairy and beef farmers breathed a collective sigh of relief. However, it now transpires that they need to hold their breath until after the mid-term review in 2023.

The fact that the conditions attached to the derogation – namely that water quality trends need to be improving for the full derogation to remain for the term – were not published at the same time reflects poorly on all concerned.

If the derogation drops to 220kg organic nitrogen per hectare, dairy farmers can no longer implement the Teagasc blueprint, which is a stocking rate of 2.7 cows/ha.

The nitrate excretion rates per cow have already been increased to 92kg/cow for the majority of herds and 106kg/cow for high-yielding herds.

If, on top of this, the 250kg/ha limit is reduced to 220kg/ha, it will have massive repercussions for the majority of dairy farmers.

Farmers deserve full clarity on future policy direction.