Irish farmers have identified product price as the key issue that will impact on their farm enterprise in 2017, according to the Irish Farmers Association (IFA) barometer of farmer sentiment which is part of the Farm Income Review. Fifty three per cent of those who responded said it was most important to them, with a quarter of farmers saying Brexit would be the key issue.
This year’s IFA Farm Income Review and Outlook contains a barometer of farmer sentiment for the first time. Approximately, 425 farmers across all farming sectors and in all parts of the country were surveyed in early December 2016, through a combination of online and phone.
To gauge the mood of farmers as they headed into 2017, respondents were asked whether they were positive about the outlook for Irish farming in 2017 compared with 2016. Forty seven per cent of respondents were negative about the outlook, 40% were positive with 13% of respondents stating that they did not know or had no opinion.
When asked about the outlook for their own farming enterprise in 2017, however, respondents were more positive, with 53% positive, compared with 37% negative, and 10% who did not know/had no opinion.
The outlook by sector shows a significant variation depending on the enterprise. Those sectors most concerned about 2017 are tillage, beef and horticulture. Eighty three per cent of tillage farmers have a negative outlook for Irish farming for the next 12 months, while only one-third of beef farmers are positive about the outlook for 2017.
By contrast, the dairy, pigmeat and poultry sectors displayed strong positivity for 2017. After a difficult 12 months in 2016, 85% of dairy farmers are positive and seven out of ten pig farmers are positive about farming.
National Farm Income last year is estimated to have increased by 2% on 2015. While market returns fell across almost all sectors, a significant increase in direct payments contributed to the slightly positive outcome at national level. The picture at individual farm level would have varied significantly, depending on participation in farm schemes and the redistribution of the Basic Payment that is ongoing.
Commenting on the research, IFA Chief Economist, Rowena Dwyer said, "The findings show that farmers are more positive about their ability to influence the outcome on their own farming enterprise than they are for the general outlook for Irish farming."
She added, "Exchange rate volatility between sterling and the euro is certain to continue throughout 2017, as political events, such as the commencement of UK exit negotiations in Spring, and elections across the EU, will impact on investor confidence. While there was a slightly more positive outlook for sterling as we entered 2017, the potential for it to fluctuate significantly on the back of political statements and events, as we have already seen in recent days, remains a concern."
Source: www.businessworld.ie
