The drop in Northern Ireland farm incomes in 2018 is 'disappointing' and shows a need for better decision making, farmers have said.
The provisional income figures show a total income drop of £107 million, down 24 per cent, to £360 million.
The Ulster Farmers' Union (UFU) said that with weeks to go until Brexit the figures underline the continuing dependence of direct support for agriculture.
UFU President, Ivor Ferguson said: “Despite the lack of firm decisions on future support arrangements these figures must be a wake up call that these cannot be indefinitely delayed.”
The UFU said the figures need to be seen in the context of there being less money available for farmers to invest or spend in their local community.
“Even with all the changes we have seen in rural areas their financial fortunes still ebb and flow with the success or otherwise of agriculture,” said the UFU president.
The figures confirm that despite continuing general growth in both quantity and price of outputs, farmers are being hit by rising costs for all inputs. Feed makes up 55 per cent of the bill as costs there rose by 13 per cent.
Mr Ferguson said: “This is the other side of the coin of price gains from the weakening of sterling. Most inputs such as feed, chemicals, fuel and fertilisers link back to euro or US dollar prices.
“These increases and higher labour costs are putting a squeeze on margins when incomes are just about static.”
There has also been a reduction in forecast in average farm business incomes for 2018/2019, but the UFU said it is particularly concerned about the plunge in incomes in both hill and lowland beef and sheep production.
“This is a threat to the very backbone of agriculture, if farmers are unable to cover rising input costs its future is in doubt. That would be a massive blow to the industry. Tacking this issue must be central to whatever new farm support structures are put in place after Brexit,” said the UFU president.
