Farm costs dropped by 0.2% in May this year but are still 3.8% higher than last year, according to the latest figures from the Central Statistics Office (CSO).

Overall prices paid to farmers rose by 3.2% in May and are now 2.4% higher than a year ago. This is due to a 37.1% rise in crop prices compared to the previous May. Animal output prices were down 2.1% in the same period.

Increased fertiliser and feed prices

Prices of fertiliser and feedstuffs were up by 5.3% and 8.2% respectively in May this year compared to the same month last year.

Energy prices were up almost 2% in May compared to the previous month, mostly due to a rise in diesel prices.

Farmgate prices

Sheep prices in May stood at 14.3% lower than last year and cattle 6.6% lower, with a slight improvement for May on the cattle side.

Pigs saw the biggest lift in terms of livestock, with prices up 18.4% in May this year compared to the same month last year.

Milk prices were up 0.3% during the month, ending up 0.3% lower than last year.

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Margins squeezed by falling farmgate prices and rising fertiliser and feed costs

Higher fertiliser and feed costs, combined with lower farmgate prices for cattle and sheep, had an impact on farmers in May this year.