A new report, by economists at Teagasc, warns of continued financial concerns for Irish farmers over the coming months, as high costs, largely, but not exclusively, relating to Russia’s illegal invasion of Ukraine, exert pressure on farm profitability.
While the average family farm income (FFI) in Ireland is estimated to have increased by 20 percent in 2021, a decline in the average income in 2022 is now highly likely, as output price increases will fail to offset the rise in production costs.
Even before Russia’s illegal invasion of Ukraine, agricultural prospects for 2022 were dominated by concerns relating to cost pressures, which began to build up over the second half of 2021. However, the war in Ukraine has led to a sharper and more widespread increase in farm input prices in 2022 than had been anticipated at the end of 2021.
However, the greatest concern on the cost side for 2022 is the price of fertilizer. Extremely high prices for 2022 had been expected, on foot of rising European gas prices. The war in Ukraine has seen price increases accelerate further, with fertilizer prices in 2022 up in excess of 200% to 250% on their 2021 level. Fertilizer prices and fertilizer availability continue to represent the key twin concerns for farmers this year. However, reports indicate that there are now adequate supplies of fertilizer in Ireland. It is expected that there will be some reduction in fertilizer usage as a result of the very high fertilizer price levels.
Read the complete article at www.teagasc.ie.
Teagasc, Oak Park, Carlow R93 XE12
Tel: +353 59 917 0200
Fax: +353 59 918 2097