Teagasc Naonal F arm Survey Preliminary Results 2019 Trevor - - PowerPoint PPT Presentation

Teagasc Naonal F arm Survey Preliminary Results 2019

Trevor Donnellan, Brian Moran, John Lennon & Emma Dillon

Rural Economy Development Programme, Teagasc, Athenry, Co. Galway.

Outline

• 1. 2019 Summar

y & F amily F arm Income Definition

• 2. Overview o

f Farm Income Results 2019

• Farm Systems Analysis
• Income Distribution
• Regional Results
• 3. Receipt o

f Direct Payments 2019

• 4. Investment & Borr
• wings
• 5. Farm Demographics
• 6. Farm Viability
• 7. Conclusion

Interpreting Boxplots

The green shaded bo xes are representative o f between 25% and 75% o f the population. The line within the bo x represents the median (middle) data point, i.e. half o f all far ms lie below this with half above. The tails at either end corr espond to the minimum and maximum data points with extreme outlier s removed.

Family Farm Income Definition

Calculated by deducting all farm costs from total gross output. Family labour is not included as a cost so FFI is the return to family labour, management and investment. Growth Curve from Pasture Base Ireland 2019

Avg Concentrate usage on Dairy Farms by NUTS II Region 2017 - 2019

Farm Population 2019

28.6K 25.5K 16.1K 1.1K Sheep 14.3K Tillage 6.9K Cattle Other Cattle Rearing Dairying Mixed Liv…

Family Farm Income by System 2019

Farm System Family Farm Income

ALL Systems Cattle Other Cattle Rearing Dairying Mixed Livestock Sheep Tillage € 23,934 € 13,893 € 9,188 € 66,570 € 54,765 € 14,604 € 34,437

Aggregated FFI % 2019 49% 18% 11% 11% Sheep 9% Dairying Cattle Other Tillage Cattle R… Family Farm Income 2010 - 2019 € per farm

€ 20,000 € 40,000 € 60,000 € 80,000 Family Farm Income 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Farm System ALL Systems Cattle Other Cattle Rearing Dairying Sheep Tillage

Average Family Farm Income 2019

€ 23,934

Unpaid Labour units per farm Dairying ALL Systems Sheep Tillage Cattle Rearing Cattle Other 1.38 1.03 1.03 0.98 0.96 0.91 FFI & FFI per AWU 2019 € per farm

€ 0 € 20,000 € 40,000 € 60,000 € 80,000 € 100,000 Family Farm Income and Inco… Cattle Other Cattle Rearing Dairying Sheep Tillage € 13.9K € 9.2K € 66.6K € 14.6K € 34.4K 15.9K 11.5K 51.3K 14.7K 39.9K Family Farm Income Income_per_unpaid_lab_unit

FFI Distribution by Farm System 2019 FFI per AWU by Farm System 2019

Distribution of Family Farm Income % of farms by FFI Bracket

10-20K 20-30K 30-50K 50-7… 70-100K >100K 0-10K

20 12 10 5 5 4 44 Distribution of FFI - Dairy Farms 2019 10-20K 7% 20-30K 11% 30-50K 20% 50-70K 16% 70-100K 20% >100K 19% 0-10K 6% Distribution of FFI - Cattle Rearing Farms 2019 10-20K 23% 20-30K 8% 30-50K 4% 70-100K 1% 0-10K 63%

Family Farm Income Distribution 2019

44% earn less than €10,000 4% of farms earn in excess of €100,000 Major differences accross Farming Systems

Eastern & Midland

Farm System No Of Farms



UAA

ALL Systems Cattle Other Cattle Rearing Tillage Sheep Dairying 17,950 6,987 3,538 2,691 2,417 2,014 47.5 38.8 36.1 66.8 41.1 72.0 Northern & Western

Farm System



No Of Farms UAA

ALL Systems Cattle Other Cattle Rearing Dairying Sheep Tillage 33,946 10,111 13,249 2,352 8,061 173 33.7 29.5 30.3 51.0 39.1 40.7 Southern

Farm System



No Of Farms UAA

ALL Systems Cattle Other Cattle Rearing Dairying Sheep Tillage 39,600 10,749 9,386 11,708 3,844 3,747 48.4 41.2 32.2 58.3 62.6 59.5

Farm System

All 

Farm Population by Region

No of Dairy Cows & Total Livestock Units per farm

60 70 80 90 100 110 120 130 2010 2012 2014 2016 2018

65 79 63 71 66 78 64 99 120 120 119 108 103 117

Dairy Cows Total Livestock Units

Milk Production & Milk Sales per hectare

9K 10K 11K 12K 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

9.8K 11.8K 9.4K 11.4K 11.4K 9.8K 11.0K 10.5K 11.1K 10.3K 11.4K 8.9K 10.5K 10.0K 11.0K 9.3K 9.8K 10.5K 10.9K Milk Produced per ha Milk Sales per ha Dairy Stocking Rate - Cows per ha

1.85 1.90 1.95 2.00 2.05 2.10 2010 2012 2014 2016 2018

1.90 2.09 1.88 2.09 2.07 2.03 2.03

Milk Yield per cow (litres) - Cows per ha

5,000 5,200 5,400 5,600 2010 2012 2014 2016 2018

5,099 5,588 4,968 5,440 5,318 5,170 5,150

Dairy UAA & Dairy Forage Area

30 40 50 60 2010 2012 2014 2016 2018

34 38 33 34 33 37 36 54.7 58.8 58.9 56.1 56.2 58.7 57.6

Dairy Forage Area ha UAA ha

Dair y Trends 2010 - 2019

FFI 2019 - € per farm

€ 66,570

Dairy Farm Income 2015-2019

€ 0K € 20K € 40K € 60K € 80K € 100K 2015 2016 2017 2018 2019 € 64K € 67K € 89K € 54K € 61K

Output & Margins cents per litre of milk 2015-2019

Year



Milk price cpl Total Production Costs cpl Net Margin cpl 2015 2016 2017 2018 2019 31.1 28.2 37.0 35.7 34.7 22.7 22.0 23.4 27.1 25.1 9.8 6.6 15.0 9.5 10.1

Farm Characteristics 2015-2019

Year



Family Labour Total Area_Owned UAA FFI per ha FFI per cow

2015 2016 2017 2018 2019

1.39 1.38 1.39 1.36 1.38 1.60 1.62 1.64 1.62 1.64 47.2 47.3 47.3 46.6 47.2 57.6 58.8 58.9 58.7 58.8 € 1,109 € 919 € 1,508 € 1,046 € 1,132 € 904 € 717 € 1,152 € 789 € 839 Soil Types 57 4 38 Soil Group 1 Soil Group 3 Soil Group 2

Dair ying S ystem Results National

Region

National 

Region

National 

Financial Performance per hectare 2017-2019

€ 0K € 1K € 2K € 3K € 4K

2017 2018 2019 € 3.7K € 3.7K € 3.6K € 1.3K € 1.5K € 1.6K € 2.4K € 2.2K € 2.1K € 0.9K € 1.0K € 1.0K € 1.5K € 1.1K € 1.0K

Gross Output Direct Costs Gross Margin Overhead Costs FFI Selected Dairy technical performace Indicators 2017 - 2019

Year



Stocking Rate (Cows /ha) Conc Feed Kg per cow SCC Yield per cow (lt) Milk Produced per ha (lt)

2017 2018 2019 2.09 2.07 2.09 1,037 1,378 1,122 163 178 164 5,417 5,457 5,588 11,396 11,383 11,799

Dair ying S ystem Results National

Concentrates Fed per Cow by Stocking Rate 2018-2019

Region

National 

Average Farm Costs per hectare 2015 - 2019

€ 800 € 900 € 1,000 € 1,100 € 1,200 € 1,300 € 1,400 € 1,500 € 1,600 2015 2016 2017 2018 2019

€ 1,231 € 1,499 € 1,595 € 1,228 € 1,289 € 864 € 1,028 € 850 € 1,006 € 917 Direct_Costs_ha Overhead_Costs_ha

Farm System

Dairying 

Average Total Farm Costs 2015 -2019

€ 0K € 20K € 40K € 60K € 80K € 100K € 120K € 140K € 160K 2015 2016 2017 2018 2019

€ 70,937 € 88,209 € 93,556 € 75,924 € 72,205 € 49,793 € 60,500 € 53,983 € 50,016 € 59,019 Direct_Costs Overhead_Costs

Dair ying S ystem Results National

Region

National 

Selected Costs per farm 2015 - 2019

2015 2016 2017 2018 2019

€ 9.3K € 10.8K € 10.7K € 10.7K € 10.0K € 4.9K € 7.5K € 6.8K € 6.6K € 7.1K € 10.1K € 8.8K € 8.2K € 9.3K € 9.0K € 5.4K € 6.2K € 5.9K € 5.6K € 6.1K 9.0K 9.1K 8.5K 8.8K 8.8K € 5.5K € 5.0K € 4.1K € 5.3K € 4.8K € 5.9K € 6.0K € 5.8K € 5.4K € 8.7K € 11.4K € 9.3K € 8.8K € 11.2K € 13.5K € 14.4K € 12.1K € 12.4K € 13.8K € 14.3K € 19.1K € 13.3K € 17.5K € 14.1K € 4.8K € 6.0K € 25.5K € 36.5K € 42.3K € 29.5K € 26.8K € 3.6K

Casual_Labour Livestock_AI_Vet Interest_Charges Buildings_Maintenance Car_Electricity_Phone Machinery_Operating Other_OC Other_DC Current_Hired_Labour Land Rental Hire_of_Machinery Fertiliser Farm Depreciation Bulky Feed Concentrates

Farm System

Dairying 

Costs of Pr oduction by S ystem

FFI per hectare 2019

€ 0 € 500 € 1,000 € 1,500 € 2,000 2017 2018 2019 € 1,517 € 1,116 € 992 € 1,275 € 857 € 871 € 1,550 € 1,196 € 1,099 Region Eastern & Midland Northern & We… Southern

Selected Dairy technical performace Indicators 2019

Region Conc Feed per cow kg Conc feed cent per litre Milk Price Net Margin FFI per cow Gross_Margin_cow Gross_Margin_ha

Eastern & Midland Northern & Western Southern 1,124 1,505 1,017 5.56 7.52 5.38 34.7 33.7 34.9 9.6 6.9 11.0 € 760 € 679 € 907 € 1,605 € 1,499 € 1,629 € 2,356 € 1,893 € 2,148

Farm Characteristics 2019

Region Dairy Cows Area Owned ha UAA ha Stocking Rate cows per ha Family Labour Total Labour



Eastern & Midland Northern & Western Southern 105.7 64.4 76.9 53.7 41.9 47.8 72.0 51.0 58.3 2.26 1.88 2.11 1.28 1.41 1.40 1.78 1.66 1.60

Dairy Population 2019

Southern 73% 15% 13% Northern … Eastern & Midland

Dairy Cows per farm 2019

60 80 100

2015 2020

Dair ying S ystem Results Regional

FFI 2019 - € per farm

€ 9,188

Income Drivers

• Gross Output up 2%
• Increase in Direct Payments up 12%
• Direct Costs down 8%
• Feed down 20%
• Fertiliser down 8%
• FFI up 11%

Cattle Farm Income 2017 - 2019

€ 0K € 5K € 10K € 15K 2017 2018 2019 € 10.6K € 9.2K € 8.2K € 13.1K € 14.7K € 13.1K Family Farm Income Total Direct Payments

Farm Characteristics 2017 - 2019 Year



Farmer Age Family Labour Area_Own ed UAA FFI per ha Suckler Cows Livestock Units Gross_Margin_ha 2017 2018 2019 54.9 58.8 59.3 0.95 0.92 0.96 29.3 28.7 29.3 32.6 30.8 31.9 € 326 € 268 € 288 24.0 22.6 23.5 36.82 35.15 36.65 € 758 € 732 € 763

Cattle R earing System Results National

Region

National 

Population Represented by Farming System 2019

13.2K Southern 9.4K 3.5K Northern & Western Eastern & Midland

Cattle Farm Income 2019

€ 0K € 5K € 10K € 15K € 20K Eastern & Midland Northern & Western Southern

€ 12.6K € 8.8K € 8.0K € 16.7K € 14.3K € 14.4K

Family Farm Income Direct_Payments_Subs

Farm Characteristics 2019

Region Farmer Age UAA Suckler Cows Livestock Units Gross Output per ha



Direct Payments per ha FFI per ha Off farm employment Holder % Eastern & Midland Northern & Western Southern 65.4 56.1 60.3 36.1 30.3 32.2 29.9 21.2 23.0 46.68 33.59 35.21 € 1,254 € 1,121 € 1,114 € 462 € 471 € 447 € 349 € 290 € 249 27.9 48.1 34.7

Cattle R earing System Results Regional

FFI 2019 - € per farm

€ 13,893

Income Drivers 2019

• Gross Output down 4%
• Direct Payments up 10%
• Direct Costs down 6%
• Feed down 12%
• Fertiliser down 8%
• FFI down 5%

Cattle Farm Income 2017 - 2019

€ 0K € 5K € 10K € 15K € 20K 2017 2018 2019 € 16.1K € 13.9K € 14.8K € 15.4K € 17.9K € 16.3K Family Farm Income Total Direct Payments

Farm Characteristics 2017 - 2019 Year Farmer Age Family Labour Area_Own ed UAA FFI per ha Livestock Units 2017 2018 2019 56.6 59.2 59.5 0.88 0.90 0.91 33.4 35.3 33.9 35.0 37.2 36.2 € 460 € 397 € 384 47.20 50.38 47.61

Cattle Other System Results National

Region

National 

Population Represented by Farming System 2019

Southern 10.7K 10.1K 7.0K Northern & Western Eastern & Midland

Cattle Farm Income 2019

€ 0K € 5K € 10K € 15K € 20K € 25K Southern Eastern & Midland Northern & Western

€ 16.6K € 13.0K € 12.1K € 20.1K € 18.3K € 15.5K

Family Farm Income Direct_Payments_Subs

Farm Characteristics 2019

Region Farmer Age UAA Suckler Cows Livestock Units Gross Output per ha Direct Payments per ha FFI per ha Off farm job Holder %



Northern & Western Eastern & Midland Southern 55.2 60.3 62.4 29.5 38.8 41.2 9.0 11.1 9.8 38.09 53.54 51.91 € 1,376 € 1,404 € 1,363 € 524 € 471 € 487 € 411 € 334 € 403 52.0 36.0 30.6 Gross New Investment 2019

€ 0K € 2K € 4K € 6K Southern Eastern & Midland Northern & Western Gross_New_Investmnt Net_New_Investmnt

Cattle Other System Results Regional

FFI 2019 - € per farm

€ 14,604

Income Drivers 2019

• Market output is down
• Direct payments +2%
• Overall Costs down 6 %
• Feed down 18%
• Fertiliser expenditur

e down 10%

• FFI up 9%

Sheep Farm Income 2017 - 2019

€ 0K € 5K € 10K € 15K € 20K 2017 2018 2019 € 17.4K € 14.6K € 13.3K € 18.6K € 19.3K € 19.0K Family Farm Income Total Direct Payments

Farm Characteristics 2017 - 2019 Year Farmer Age Family Labour Area_Own ed UAA FFI per ha Livestock Units Ewes 2017 2018 2019 58.4 59.6 58.9 1.08 1.06 1.03 41.6 42.7 42.0 47.3 48.2 47.0 € 367 € 277 € 311 54.64 52.94 52.11 133.0 127.2 132.7

Sheep System Results National

Region

National 

Income Drivers

• Yields up
• Prices down
• Input costs up
• FFI down 15%

FFI 2019 - € per farm

€ 34,437

Tillage Farm Income 2017 - 2019

€ 0K € 10K € 20K € 30K € 40K € 50K 2017 2018 2019 € 36,048 € 34,437 € 40,601 € 22,900 € 25,349 € 22,404 Family Farm Income Direct_Payments_Subs

Farm Characteristics 2017 - 2019

Year



Farmer Age Area_Own ed UAA FFI per ha Tillage Area Cereal Area Total Livestock Units Gross_Margin_ha 2017 2018 2019 59.3 60.2 58.2 52.1 49.5 51.2 59.5 60.0 60.6 € 605 € 677 € 568 36.49 36.85 37.05 31.57 32.47 33.06 31.61 32.40 34.29 € 1,176 € 1,285 € 1,235

Tillage S ystem Results National

Direct Payments per ha by Year and Farm System 2010 - 2019

€ 300 € 350 € 400 € 450 € 500 € 550 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Farm System ALL Systems Cattle Other Cattle Rearing Dairying Sheep Tillage

Direct Payments by Year and Farm System 2010 - 2019

€ 10K € 15K € 20K € 25K € 30K 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Farm System ALL Systems Cattle Other Cattle Rearing Dairying Sheep Tillage

Pillar_1 and Pillar_II Payments by Farm System 2019

0% 20% 40% 60% 80% 100%

ALL Systems Cattle Other Cattle Rearing Dairying Sheep

70% 69% 58% 81% 63% 30% 31% 42% 19% 37%

M_Pillar_1 M_Pillar_II

Pillar II Payment Dissagregation by Farm System 2019

0K 1K 2K 3K 4K 5K 6K 7K

ALL Systems Cattle Other Cattle Rearing Dairying Sheep

2017 1984 2071 2060 2571 1713 1928 1835 678 2213 785 639 1603 545 232 1164 266 363 257 183 280 177

ANC GLAS BDGP & BEEP Sheep Welfare Forestry Organics

Region

National 

BEAM Scheme Participatio…

0% 100%

42%

Select Farm System

 ALL Systems  Cattle Other  Cattle Rearing  Dairying  Sheep  Tillage

BEEP Average payment €

0K 1K 2K 3K 4K 5K ALL Systems

BEEP Scheme Participatio…

0% 100%

23%

GLAS Scheme Participatio…

0% 100%

38%

GLAS Average payment €

0K 1K 2K 3K 4K 5K ALL Systems

BDGP Scheme Participati…

0% 100%

32%

BDGP Average payment €

0K 1K 2K 3K 4K 5K ALL Systems

2019 Selected Schemes - % par ticipation & A verage P ayments for par ticipating far mers

BEAM Average payment €

0K 1K 2K 3K 4K 5K ALL Systems

Scheme Participation by Farm System 2019

0% 20% 40% 60% 80% 100% ALL Systems Cattle Other Cattle Rearing Dairying Sheep Tillage % Yes ANC % Yes FORESTRY % Yes KT_SCHEME % Yes ORGANIC_SCHEME % Yes Sheep Welfare % Yes Tams

Average payment per farm by scheme participation 2019

0K 5K 10K 15K 20K ALL Systems Cattle Other Cattle Rearing Dairying Sheep Tillage

Avg EU ANC Avg EU FORESTRY Avg EU KT_SCHEME Avg EU ORGANIC_SCHEME Avg EU Sheep Welfare Avg EU Tams

Gross Farm Investment by Farm System € per farm 2019

€ 0 € 10,000 € 20,000 € 30,000 Gross_New_Investmnt 2017 2018 2019

Farm System ALL Systems Cattle Other Cattle Rearing Dairying Sheep Tillage

Type of Farm Investment € per farm 2019

10,000 20,000 30,000 Land Improvements, Buildin…

ALL Systems Cattle Other Cattle Rearing Dairying Sheep Tillage 4.0K 15.5K 6.6K 5.8K 2.9K 2.4K 15.7K 13.1K 2.2K Land Improvements Buildings Machinery

Investment Subsidies Recieved € per farm 2019

Farm System



Capital Grants TAMS

ALL Systems Cattle Other Cattle Rearing Dairying Mixed Livestock Sheep Tillage 692 89 23 2796 1405 273 1493 Investment 2019

On-farm investment up 2% to €983 million. Over half this invested on Dairy farms Average Investment €33,091 per Dairy farm in 2019

Farm Debt by Farm System € per farm 2019

€ 0 € 20,000 € 40,000 € 60,000 € 80,000 Borrowings 2017 2018 2019 € 21.0K € 22.4K € 22.4K € 12.7K € 11.9K € 12.5K € 5.6K € 8.2K € 7.3K € 68.5K € 72.1K € 74.6K € 8.5K € 6.8K € 8.9K € 21.8K € 22.4K € 19.3K

Farm System ALL Systems Cattle Other Cattle Rearing Dairying Sheep Tillage

Average Farm Debt € per ha 2019

€ 0 € 500 € 1,000

Dairying ALL Systems Tillage Cattle Other Cattle Rearing Sheep

€ 1,226 € 520 € 369 € 329 € 258 € 144 € 1,132 € 554 € 568 € 384 € 288 € 311

Loan Amount FFI Farm Related Debt 2019

Average Debt level unchanged €22,444 2/3rds of Farms have no farm related debt Large variation within Farm Systems

Farm Debt Type 2019

0% 50% 100% Tillage Cattle Other Sheep Dairying Cattle Rearing

29% 11% 9% 6% 6% 40% 14% 16% 14% 13% 30% 75% 75% 79% 81%

Short Term Finance Company Long Medium Term Loans

Farm With Debt % Population 2019

Dairying ALL Systems Tillage Cattle Other Cattle Rearing Sheep

64.17% 37.66% 35.15% 34.34% 30.87% 26.10% Farms With Debt € per farm & FFI 2019

€ 0K € 50K € 100K Dairying Tillage Cattle Other Cattle Rearing Sheep € 112.4K € 63.7K € 34.6K € 26.6K € 25.9K € 74.5K € 48.6K € 15.3K € 10.5K € 22.0K Loan Amount FFI Loan

Farms With Debt - Average Borrowings € per farm (2014-2019)

€ 0K € 20K € 40K € 60K € 80K € 100K € 120K € 140K

Dairying Tillage Sheep Cattle Other Cattle Rearing

Year 2014 2015 2016 2017 2018 2019

Selected Farm Demographics Household Size 2019

2 4 Cattle Other Cattle Rearing Dairying Sheep Tillage 2.5 2.6 3.3 2.3 2.8

% Farms Holder/Spouse in receipt of pension 2019

10 20 30 40 Cattle Other Cattle Rearing Dairying Sheep Tillage

% Holder that are Married 2019

50 100 Cattle Other Cattle Rearing Dairying Sheep Tillage

Average Farmer Age 2012 - 2019

50 60 2012 2013 2014 2015 2016 2017 2018 2019

Farm System ALL Systems Dairying

% Off-Farm employment 2012 - 2019

20 40 60 2012 2013 2014 2015 2016 2017 2018 2019

Holder Spouse Holder &/or Spouse

Viable A farm business is viable if the farm income can remunerate family labour at the minimum agricultural wage and provide a 5% return on the capital invested in non-land assets. Sustainable If the farm business is not viable the household is still considered sustainable if the farmer or spouse has an off-farm income. Vulnerable A farm household is considered to be economically vulnerable if the farm business is not viable and if neither the farmer nor spouse work off the farm.

Viability over time 2010 - 2019

30 35 40 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Vulnerable Viable Sustainable

Farm Viability 2019 32.9% Viable 34.0% 33.0% Sustainable Vulnerable Viability by Farm System 2019

0% 20% 40% 60% 80% 100% Cattle Rearing Cattle Other Sheep Dairying Tillage

44.6% 37.5% 33.9% 13.2% 20.9% 12.9% 24.5% 26.3% 74.9% 62.5% 42.5% 38.0% 39.8% 11.9% 16.6%

Sustainable Viable Vulnerable

Region

National 