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

Teagasc Na�onal 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 owings 5. Farm Demographics 6. Farm Viability 7. Conclusion

Family Farm Income Definition Growth Curve from Pasture Base Ireland 2019 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. Avg Concentrate usage on Dairy Farms by NUTS II Region 2017 - 2019 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.

Farm Population 2019 Family Farm Income by System 2019 Aggregated FFI % 2019 Farm System Family Farm Income Tillage 6.9K ALL Systems € 23,934 Sheep 9% Dairying Cattle Other € 13,893 Cattle R… Cattle Other 49% Sheep 14.3K 11% 28.6K Cattle Rearing € 9,188 Mixed Liv… Dairying € 66,570 1.1K Mixed Livestock € 54,765 Tillage 11% Sheep € 14,604 Dairying Tillage € 34,437 16.1K Cattle Other Cattle Rearing 18% 25.5K Family Farm Income 2010 - 2019 € per farm Average Family Farm System ALL Systems Cattle Other Cattle Rearing Dairying Sheep Tillage Farm Income 2019 € 80,000 Family Farm Income € 60,000 € 23,934 € 40,000 € 20,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

FFI Distribution by Farm System 2019 FFI per AWU by Farm System 2019 FFI & FFI per AWU 2019 € per farm Unpaid Labour units per farm Family Farm Income Income_per_unpaid_lab_unit Dairying 1.38 € 100,000 Family Farm Income and Inco… ALL Systems 1.03 € 80,000 € 66.6K Sheep 1.03 € 60,000 51.3K 39.9K € 40,000 Tillage 0.98 € 34.4K € 20,000 15.9K € 14.6K 14.7K Cattle Rearing € 13.9K 0.96 11.5K € 9.2K € 0 Cattle Other 0.91 Cattle Other Cattle Rearing Dairying Sheep Tillage

Distribution of Family Farm Income % of farms by FFI Bracket Family Farm Income Distribution 2019 0-10K 10-20K 30-50K 50-7… 44% earn less than €10,000 4% of farms earn in excess of €100,000 Major differences accross Farming 20 10 5 Systems 20-30K 70-100K >100K 44 12 5 4 Distribution of FFI - Cattle Rearing Farms 2019 Distribution of FFI - Dairy Farms 2019 0-10K 6% 10-20K 7% 10-20K 23% 20-30K 11% >100K 19% 20-30K 8% 30-50K 20% 0-10K 63% 30-50K 4% 70-100K 20% 70-100K 1% 50-70K 16%

Farm Population Farm System Northern & Western All  by Region Farm System No Of Farms UAA  ALL Systems 33,946 33.7 Cattle Other 10,111 29.5 Cattle Rearing 13,249 30.3 Dairying 2,352 51.0 Sheep 8,061 39.1 Eastern & Midland Tillage 173 40.7 Farm System No Of Farms UAA  ALL Systems 17,950 47.5 Cattle Other 6,987 38.8 Cattle Rearing 3,538 36.1 Tillage 2,691 66.8 Sheep 2,417 41.1 Dairying 2,014 72.0 Southern Farm System No Of Farms UAA  ALL Systems 39,600 48.4 Cattle Other 10,749 41.2 Cattle Rearing 9,386 32.2 Dairying 11,708 58.3 Sheep 3,844 62.6 Tillage 3,747 59.5

Dair y Trends 2010 - 2019 No of Dairy Cows & Total Livestock Units per farm Milk Production & Milk Sales per hectare Milk Produced per ha Milk Sales per ha Dairy Cows Total Livestock Units 130 12K 11.8K 120 120 120 117 11.4K 11.4K 119 11.1K 11.0K 11.4K 110 108 10.9K 11K 103 11.0K 10.5K 10.5K 10.5K 100 10.3K 99 10.0K 90 10K 9.8K 9.8K 79 80 9.8K 78 9.3K 9.4K 71 70 9K 66 65 64 63 8.9K 60 2010 2012 2014 2016 2018 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Milk Yield per cow (litres) - Cows per ha Dairy UAA & Dairy Forage Area Dairy Stocking Rate - Cows per ha 5,600 2.10 Dairy Forage Area ha UAA ha 5,588 2.09 60 2.09 58.8 2.05 2.07 5,440 56.2 2.03 2.03 58.9 58.7 5,400 57.6 56.1 54.7 2.00 50 5,318 5,200 5,170 1.95 5,150 40 38 37 1.90 36 1.90 5,099 5,000 34 34 1.88 30 1.85 33 4,968 33 2010 2012 2014 2016 2018 2010 2012 2014 2016 2018 2010 2012 2014 2016 2018

FFI 2019 - € per farm Dair ying S ystem Region National Results  € 66,570 National Dairy Farm Income 2015-2019 Output & Margins cents per litre of milk 2015-2019 € 100K Year Milk price Total Net Margin € 89K cpl Production cpl Costs cpl € 80K  € 67K € 64K 2015 31.1 22.7 9.8 € 61K € 60K € 54K 2016 28.2 22.0 6.6 2017 37.0 23.4 15.0 € 40K 2018 35.7 27.1 9.5 2019 34.7 25.1 10.1 € 20K € 0K 2015 2016 2017 2018 2019 Soil Types Farm Characteristics 2015-2019 Year Family Labour Total Area_Owned UAA FFI per ha FFI per cow  1.39 1.60 47.2 57.6 € 1,109 € 904 2015 Soil Group 2 38 2016 1.38 1.62 47.3 58.8 € 919 € 717 Soil Group 1 1.39 1.64 47.3 58.9 € 1,508 € 1,152 2017 57 1.36 1.62 46.6 58.7 € 1,046 € 789 2018 Soil Group 3 2019 1.38 1.64 47.2 58.8 € 1,132 € 839 4

Dair ying S ystem Results National Region National  Financial Performance per hectare 2017-2019 Gross Output Direct Costs Gross Margin Overhead Costs FFI € 4K € 3.7K € 3.7K € 3.6K € 3K Concentrates Fed per Cow by Stocking Rate 2018-2019 € 2.4K € 2.2K € 2.1K € 2K € 1.6K € 1.5K € 1.5K € 1.3K € 1.0K € 1.0K € 1K € 0.9K € 1.1K € 1.0K € 0K 2017 2018 2019 Selected Dairy technical performace Indicators 2017 - 2019 Year Stocking Rate Conc Feed SCC Yield per Milk Produced (Cows /ha) Kg per cow cow (lt) per ha (lt)  2017 2.09 1,037 163 5,417 11,396 2018 2.07 1,378 178 5,457 11,383 2019 2.09 1,122 164 5,588 11,799

Farm System Region Dair ying S ystem Dairying National   Results National Average Farm Costs per hectare 2015 - 2019 Average Total Farm Costs 2015 -2019 Direct_Costs_ha Overhead_Costs_ha Direct_Costs Overhead_Costs € 1,600 € 160K € 1,595 € 1,500 € 140K € 1,499 € 120K € 59,019 € 1,400 € 60,500 € 100K € 53,983 € 1,289 € 1,300 € 50,016 € 49,793 € 1,231 € 80K € 1,200 € 1,228 € 60K € 1,100 € 1,028 € 93,556 € 88,209 € 40K € 1,006 € 1,000 € 75,924 € 72,205 € 70,937 € 917 € 20K € 900 € 864 € 0K € 850 2015 2016 2017 2018 2019 € 800 2015 2016 2017 2018 2019

Farm System Region Costs of Pr oduction by S ystem Dairying National   Selected Costs per farm 2015 - 2019 Casual_Labour Livestock_AI_Vet Interest_Charges € 42.3K Buildings_Maintenance € 36.5K Car_Electricity_Phone € 29.5K Machinery_Operating € 26.8K € 25.5K € 19.1K € 17.5K Other_OC € 14.1K Other_DC € 13.3K € 14.3K € 13.8K € 14.4K € 12.1K Current_Hired_Labour € 12.4K € 11.2K € 13.5K € 11.4K € 10.7K Land Rental € 10.0K € 10.7K € 10.8K € 10.1K € 9.3K Hire_of_Machinery € 8.8K € 9.3K 9.1K € 9.3K € 9.0K Fertiliser 8.5K 8.8K € 8.8K 9.0K 8.8K € 8.2K € 7.1K Farm Depreciation € 7.5K € 8.7K € 6.8K € 6.6K € 6.1K € 6.2K € 5.4K € 5.9K Bulky Feed € 5.6K € 6.0K € 5.9K € 4.9K € 5.8K € 5.4K € 6.0K € 4.8K € 5.5K € 5.0K Concentrates € 4.1K € 3.6K € 5.3K € 4.8K 2015 2016 2017 2018 2019

Farm Characteristics 2019 Dair ying S ystem Region Dairy Area Owned UAA ha Stocking Rate Family Total Results Cows ha cows per ha Labour Labour Regional  Eastern & Midland 105.7 53.7 72.0 2.26 1.28 1.78 Northern & Western 64.4 41.9 51.0 1.88 1.41 1.66 Southern 76.9 47.8 58.3 2.11 1.40 1.60 FFI per hectare 2019 Dairy Cows per farm 2019 Dairy Population 2019 Region Eastern & Midland Northern & We… Southern Eastern & Midland € 2,000 100 13% Northern … € 1,517 € 1,500 15% € 1,275 € 1,116 € 1,099 80 € 992 € 1,000 € 871 € 857 € 1,550 € 500 60 € 1,196 € 0 Southern 73% 2017 2018 2019 2015 2020 Selected Dairy technical performace Indicators 2019 Region Conc Feed per Conc feed Milk Price Net Margin FFI per cow Gross_Margin_cow Gross_Margin_ha cow kg cent per litre Eastern & Midland 1,124 5.56 34.7 9.6 € 760 € 1,605 € 2,356 Northern & Western 1,505 7.52 33.7 6.9 € 679 € 1,499 € 1,893 Southern 1,017 5.38 34.9 11.0 € 907 € 1,629 € 2,148