The Ulster Farmers’ union says the farm income figures for 2015 are a stark reminder of how tough times were, and continue to be, for farming families across Northern Ireland.
UFU president, Ian Marshall said the figures will come as no surprise to farmers struggling with the fallout for their businesses. But he said equal cause for concern was the fact that at this early stage in the year there was no evidence that 2016 would bring about the dramatic improvement needed.
The plunge in incomes was so great in 2015 that farm incomes were £53 million below what was received in Common Agricultural Policy payments. This meant farmers invested in their businesses and worked all year for less than they would have had for pocketing the CAP payment and doing nothing else.
“These grim income figures are a body blow for farming families – but they are also a body blow for the entire Northern Ireland economy. Almost £130 million was taken out of the rural economy. That is money that would have been spent locally, meaning towns and villages across Northern Ireland will have felt the impact of hard times hitting the farming community.” said Mr Marshall.
The UFU president said the figures underlined why they had fought so hard locally, in London and in Brussels for politicians, retailers, and the wider public to recognise the financial pressure on the farming industry.
“This moved the plight of farming up the political agenda – and we appreciate the support that came from the wider public, who took on board messages about the importance of local sourcing. All those we lobbied can now see that, if anything, things are even worse than we said. This certainly wasn't a case of farmers crying wolf – this is a real financial crisis, and it is still there in 2016,” said Mr Marshall.
The UFU says the reasons for the price and income collapse are well understood. These include the weakness of the euro, loss of markets in Russia, supermarket price pressure and weak global markets.
“These are the explanations for what happened – but understanding a problem doesn't make it go away, and it certainly won't pay the bills farming families are facing,” said Mr Marshall, adding that it was a salutary thought that most farmers were now working for well below the minimum wage. “This is a battle we will continue fighting on various fronts.
“Serious cash flow difficulties on farms is our immediate concern and with market volatility becoming an increasingly frequent and important issue for our industry it is essential that we not only look at the possible introduction of mitigation measures but also new ways in which our lending institutions deal with debt management on farms,” he said.
