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A reduction in on-farm investment on suckler farms reflects a feeling of “pessimism” in the sector.
The Teagasc National Farm Survey showed a 19% reduction in investment to €3,889 last year.
“The survey showed a level of pessimism among suckler farms,” Brian Moran from Teagasc’s Rural Economy and Development Centre said.
This pessimism was also shared on sheep farms, where investment was down 26% to €4,652.
Suckler and sheep farmers had the lowest incomes of any sector in the survey, making €8,318 and €13,769, respectively, last year.
Poor weather conditions had a knock-on effect on some farms due to increased costs but in contrast investment on dairy and tillage farms was still strong.
Teagasc’s Brian Moran said this showed a level of “positivity” for the long-term viability of the future of those sectors, in comparison to sucklers and sheep.
Survey data indicated that 43% (22,000) of suckler farms were financially vulnerable in comparison to just 13% of dairy farms.
Investment
Overall, gross new investment on farms increased by 9% to €947m. This figure was mainly driven by dairy, which accounted for over half of total investment.
Investment on dairy farms increased by 19% to an average of €31,671/farm. Investment on tillage farms increased by over 40% to an average of €12,083/farm.
Teagasc also reported that debt levels “crept up” on farms. Debt on dairy farms represented the highest figure, with a 10% increase to €118,446.
Debt on suckler farms represented a smaller figure at €25,735 but the rate of increase was higher at 24% – potentially indicating the tough year many farmers had in 2018, with higher feed and fertiliser prices exacerbated by a longer housing period.
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