Weather to decimate incomes

FARM incomes are set to plummet for 2018 due to the confluence of unusual weather conditions that have seriously impacted on grass growth since early Spring, according to the latest Teagasc analysis.

Dairy farmers – because of their more intensive enterprises and high stocking rates – look set to take the biggest hit in incomes as they’ve had to buy in huge amounts of expensive meals over the Summer period.

Teagasc point out that while much will depend on grass growing conditions over the rest of the season, it is likely that dairy incomes will be down to about half of what they were in 2017.

They also state that while drystock farmers are generally not as badly impacted upon as the dairy sector, they will also experience an income reduction, again due to higher feed expenditure.

The news is no better for the cereal/tillage sector, according to Teagasc, despite an increase in cereal prices and an increase in the price of straw.

“A steep reduction in cereal yields and associated reduction in straw yields will mean that tillage farm incomes in 2018 will be down and could return to the low levels in 2016.

“For tillage farms, the full extent of the financial impact this year will depend on weather conditions at harvest time.

“For dairy and drystock farms, the financial impact will depend on how quickly normal grass growth is restored and the window of opportunity this creates for further silage production over the next three months, before Winter conditions set in,” Teagasc state in a report produced by their specialist team of economists.

They also point out that while the Summer drought has caused major problems, this has also been a follow-on from a very long Winter and then an abnormal Spring rainfall pattern.

For more, read this week’s Connacht Tribune.

Get the Connacht Tribune Live app
The Connacht Tribune Live app is the home of everything that is happening in Galway City and county. It’s completely FREE and features all the latest news, sport and information on what’s on in your area. Click HERE to download it for iPhone and iPad from Apple’s App Store, or HERE to get the Android Version from Google Play.