Farm margins sliding as input prices up 36.9% year-on-year
For the ninth month in succession, on-farm margins continue to slide as rising input prices overshadow any growth in aggregate output prices, according to IFA President Tim Cullinan.
Data published by the CSO shows aggregate input prices in September rose 36.9% year-on-year, with aggregate output prices rising 29.2%.
“Relatively strong output prices have helped somewhat in mitigating against the input price rise, but worryingly aggregate prices in our most vulnerable sectors are under pressure and below what the market might be expected to deliver. Cattle prices are back 1.9% on August levels, and sheep back 2.7%. These are traditionally low-income sectors and need support. Many simply won’t have the capacity to continue operations at existing input/output prices,” he said.
“The Government has provided some targeted interventions in Budget 2023, which are to be acknowledged. But more will be needed in the months ahead to support farm families through this challenging period,” he said.
“The two-week extension to the ACRES deadline isn’t sufficient to meet farmer demand. A further extension and/or simplification of the application process is needed to maximise farmer uptake. Greater flexibility is also required around the tranche-based design of ACRES to prevent thousands of farm families currently in GLAS/REAP missing out on a key income support in 2023,” he said.