Bottom line for Offaly and Midlands farmers plunged by €146 million last year

FARMING income in Offaly and other Midland counties took a huge hit in 2023 according to the latest set of figures from the Central Statistics Office (CSO).

The newly published Regional Agricultural Accounts feature a section about the Midland region which includes Laois, Longford, Offaly and Westmeath.

The CSO says the region is the second smallest agricultural-producing region, generating just 10% of the State’s output.

The statisticians add that it has the second highest dependency on cattle and pigs for its output, with cattle generating a third of its agricultural output at basic prices and pigs a further 10%.

The CSO calculates that just 19% of the value of its output comes from crops, with cereals generating 3%.

Milk was the source of a further 27% of this value.

The new figures show that agricultural output at basic prices fell by 11% (-€141m) to €1.2 bn in the twelve months to December 2023. 

Livestock, which generated 47% of the region’s agricultural output at basic prices, dropped by 1% (-€5m) to €559m. 

Pigs were the only category of livestock that saw any growth, with their value up 2% (+€2m) to €118m. 

The value of cattle decreased by 1% (-€3m) to €388m while sheep fell 13% (-€3m) to €20m. 

The CSO says milk contracted by 30% (-€137m) to €323m. 

The value of crops remained relatively static despite a 53% (-€40m) drop in cereal values. Potato values grew by 34% (+€1m) to €4m while fresh vegetables were up 5% (+€1m) to €15m.

The CSO say intermediate consumption costs decreased by 4% (-€35m) to €819m. Expenditure on fertilisers was down 41% (-€56m) to €79m and feeding stuffs fell by 4% (-€9m) to €235m. Energy and lubricants declined by 7% (-€5m) to €71m and the cost of other goods and services dropped 7% (-€6m) to €71m. Veterinary expenses were up 10% (+€4m) to €44m and seeds increased by €3m to €12m. 

The contribution of other subsidies less taxes on production to income contracted 17% (-€30m) to €148m. The CSO has found that the region’s operating surplus fell by 39% (-€128m) to €202m, and when the costs of interest and land rental are accounted for, entrepreneurial income, regarded as the bottom line,  fell by 54% (-€146m) to €123m. More below graphic on the national picture.

Commenting on national picture, Mairead Griffin, Statistician in the Agricultural Accounts & Production Section, said: “At a national level, there were significant contractions in the value of Agricultural Output at Basic Prices which was down by €1.6bn (-13%), Intermediate Consumption costs by €127m (-2%) , Operating Surplus by €1.9bn (-39%), and Entrepreneurial Income, which factors in the cost of net interest and land rental, by €2.0bn (-49%).

"To fully understand the performance of agriculture in 2023, it is worth comparing it with 2019, the last year before the upheaval to world markets caused by the COVID-19 pandemic and the war in Ukraine. Compared with 2019, which was not a particularly good year for the sector, the value of Agricultural Output at Basic Prices in 2023 was up by €2.8bn (+33%), Intermediate Consumption costs were €2.2bn (+39%) higher, Operating Surplus grew by just €45m (+2%), while Entrepreneurial Income was €316m (-13%) lower," she said.