Irish farm income drops 28 percent in 2009

Government cuts, greedy retailers and uncompetitive costs in the economy have slashed Ireland's farm income by 28 percent for 2009, according to the Irish Farmers' Association (IFA).

The 28-percent drop comes on top of a 13-percent decline in 2008.

While many farm families languish in painful financial problems, the government has sharply reduced farm schemes this year.

IFA President Padraig Walshe said the farm minister must publicly address the farm income crisis, and reassure farm families that REPS, Disadvantaged Areas and the Suckler Cow Welfare Scheme would be maintained and fully-funded into 2010.

The schemes are crucial in maintaining productivity in the agriculture sector.

Walshe said income reductions in the past two years have left the average farm income at only EUR13,000 (US$19,600) in 2009, with the income of full-time farmers at EUR16,000 (US$24,100). Average farm income is now one quarter of the average salary in the public sector.

Most farmers and small businesses are on the fringe and the government must act immediately to improve competitiveness by reducing costs in energy, labour, waste disposal and bureaucracy, he said.

Walshe also accused the government and state agencies of allowing retailers to erode farm incomes.

Unless prices retailers pay to farmers start to reflect the cost of production and a margin, they will be held directly responsible for the destruction of Ireland's food production, said Walshe.