NI farm size holding back efficiency

The current farm structure of NI agriculture is a barrier to improving productivity and efficiency and keeping pace with other sectors of the economy.

Making the point at a lunch briefing organised by Alltech at the end of last week, DAERA economist Dr Paul Caskie emphasised that the industry must do better if it is to be competitive, and particularly if future direct payments to farmers are cut.

During his presentation, he highlighted a number of issues, including farm size, which are limiting improvements in efficiency. At an average of 41ha, farms in NI are about half the UK average (80ha). “Around 75% of farms in NI are part-time and aren’t operating at the scale to justify a full-time basis. These part-time farms are extremely resilient because they are not dependent on agriculture for a full-time income,” said Caskie. That leaves around 6,000 farms (out of a total of 24,500) that produce over 70% of the agricultural output, and which are crucial to the wider agri-food industry.

Another weakness, according to Caskie, is that over half of NI farm operators have no formal qualifications. A recent consultation from DAERA has proposed that, by 2025, anyone taking over a farm should have at least a level III qualification in agriculture (“A” level equivalent). “Education is important. We need to develop higher-level technical and business management skills in particular,” highlighted Caskie.

He also maintained that to improve technical efficiency farmers must increasingly employ specialist knowledge, whether it is in animal health, nutrition, or financial advice. Research shows that those who take time to plan and manage, and employ specialist help, run more productive businesses.