The vast majority of cattle and sheep farmers blockading meat factories this week would be out of business long ago were it not for taxpayer subsidies.

In 2018, almost 30 per cent of farms had an income of less than €5,000 while a further 15 per cent had an income of between €5,000 and €10,000. This means that almost 45 per cent of farms had an income (including direct payments) of less than €10,000 in 2018.

Without the direct payments, these uneconomical enterprises would have no future. So-called direct payments to Ireland’s farmers totalled c.€1.7 billion in 2018. Though much of this cash is paid through the EU, Brussels gets it all back and more from Ireland’s annual payment to the EU budget.

The total direct payment received per farm in 2018 averaged €17,240, corresponding to three quarters of average farm income (FFI). For beef and sheep farms, the direct payment accounted for over 100 per cent of FFI. Direct payments as a percentage of income on cattle rearing farms was 158 per cent in 2018. Where the direct payment exceeds 100 per cent of income, this indicates that these farms do not make a profit and are heavily reliant on support from CAP and other payments and supports.

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The dependence of beef and sheep farms on direct payments has been consistently evident over a long period. For cattle rearing and other cattle farms (over two thirds of the total), direct payments have accounted for close to or above 100 per cent of FFI in each of the past five years. The same result holds for sheep farming.

According to Central Bank economist Thomas Coffey, this indicates that, on average, the market income (before direct payments) is less than zero on these three farm systems, which account for over 75 per cent of all farm enterprises.

Coffey’s analysis shows that beef and sheep farms, which make up around seven out of every ten farms, face significant viability challenges. Coffey remarked: “In relation to Brexit, the research suggests that the negative impact on Irish farming will not be evenly distributed. With a greater dependence on low-margin beef farming, the West, Mid-West and Midland regions are both less resilient and more exposed than the South and East.”

The south-east and south-west have the highest proportion of specialist dairy farms. Almost one in four farms in the south west are dairy farms, compared to around one in forty in the west. The midlands, mid-west and west are the areas with the highest proportion of beef farms — close to 70%, well above the national average of 57%.

Meanwhile, the From Farm to Fork Report was launched at the National Ploughing Championships by trade minister Pat Breen. It examines the future of the agri-business sector through the lens of innovation, competitiveness and success in winning business in new and emerging markets, with profiles of 18 significant businesses in the sector.

Photo (l-r): Orla Battersby, Enterprise Ireland; minister Pat Breen TD; Paddy Halton of True North Technologies, and James Maloney, Enterprise Ireland. (Pic: Orla Muray/ SON Photo)