Agricultural Operating Surplus fell by 39% (-€1.9bn) to €2.9bn. However, when the impact of higher Net Interest payments (+97%) and Land Rental costs (+15%) are factored in, the fall in Entrepreneurial Income was 49% (-€2.0bn) to €2.1bn in 2023.
With the value of many agricultural outputs down, most notably milk and cereals, the value of Agricultural Output at Basic Prices fell by 13%, or by €1.6bn, to €11.3bn in 2023.
The value of Milk decreased by 30% (-€1.5bn) to €3.5bn driven by prices being 26% lower and volumes contracting by 5%.
While there was little change in the overall value of Livestock (+€7m), Sheep farmers saw the value of their output fall by 9% (-€33m) to €345m, with lower output volumes accounting for 6% of this decline. Despite volumes contracting by 10%, stronger prices (+19%) resulted in the value of Pig production increasing by €46m to €668m.
The area planted under Cereals contracted by 6% in 2023. Taken together with reduced yields, and prices decreasing by an average of 30%, the value of Cereals reduced by 52% to €344m in 2023.
The cost of most farm inputs grew, but despite this, Intermediate Consumption costs decreased by €127m to €7.8bn in 2023. This drop was mainly due to the cost of Fertilisers falling by a third (-€400m) due to both lower volumes (-13%) and prices (-22%).
The cost of Seeds increased by 28% (+€28m), while Forage Plant costs rose by 12% (+€162m). Veterinary Expenses went up by 11% (+€38m) and expenditure on Crop Protection Products grew by 10% (+€11m).
In the beginning of 2024, Agriculture Prices switched to a new base year. When a rebase takes place, it gives rise to some element of discontinuity in the existing series. This release also incorporates a change in the methodology used to calculate Potato values. The results for years 2020 - 2023 contained in this release were revised to reflect all these changes.
This release also updates the Preliminary Estimate of Output, Input and Income in Agriculture published by the CSO in March 2024.
Table 1.1 presents analysis of Selected Income Indicators for Agriculture from 2020 to 2023. Figure 1.1 shows trends in Selected Income Indicators for Agriculture from 2020 to 2023.
| Table 1.1: Output, Input and Income in Agriculture, 2020-2023 | ||||||||
| € million | Annual Change (%) | |||||||
| 2020 | 2021 | 2022 | 2023 | 2021 | 2022 | 2023 | ||
| Goods Output | 8,403 | 9,629 | 12,312 | 10,670 | 14.6 | 27.9 | -13.3 | |
| Intermediate Consumption | 5,583 | 6,203 | 7,880 | 7,754 | 11.1 | 27.0 | -1.6 | |
| Net Subsidies | 1,766 | 1,720 | 1,952 | 1,640 | -2.6 | 13.5 | -16.0 | |
| Operating Surplus | 3,225 | 3,647 | 4,795 | 2,907 | 13.1 | 31.5 | -39.4 | |
| Entrepreneurial Income | 2,723 | 3,082 | 4,178 | 2,143 | 13.2 | 35.6 | -48.7 | |
| X-axis label | Goods Output | Intermediate Consumption | Net Subsidies | Operating Surplus | Entrepreneurial Income |
|---|---|---|---|---|---|
| 2020 | 8.40286661967086 | 5.58306350941573 | 1.76561124801348 | 3.2253638412227 | 2.72271147411371 |
| 2021 | 9.6289269318574 | 6.20268136287402 | 1.72042056189303 | 3.64723524545186 | 3.08152459940679 |
| 2022 | 12.3120681145153 | 7.88025666115013 | 1.95196967834861 | 4.79528595796202 | 4.17782272856417 |
| 2023 | 10.6704735672008 | 7.75358542079395 | 1.63972469473862 | 2.90749061039276 | 2.14252355337446 |
At the beginning of 2024 and following EU recommendations, Agricultural Prices switched to a new base year of 2020. A rebase is done every five years and can lead to some discontinuity to existing series.
This release incorporates changes to some agricultural prices arising from a switch to the new base year, changes to the methodology used to calculate potato prices (see Background Notes) and routine updates that occur when estimated or provisional values are replaced with finalised data from our data providers.
The CSO’s final estimate for 2023 is that the value of Agricultural Output at Basic Prices fell by €1.6bn (-13%) to €11.3bn. The two main drivers of this reduction were Milk and Cereals, which between them decreased in value by almost €1.9bn. Intermediate Consumption costs contracted by €127m (-2%) to €7.8bn (See Table 1.2).
Agricultural Operating Surplus fell by €1.9bn (-39%) to €2.9bn. With the cost of Net Interest almost doubling (+97%) and Land Rental costs increasing by 15%, Entrepreneurial Income fell by 49% to €2.1bn in 2023 (See Table 1.2).
There was little change in the value of cattle in 2023. While the volume produced fell by 4%, with prices up by 3% the overall impact on Cattle values was a reduction of €13m to €3.0bn. The volume of Pigs produced contracted by 10%, but stronger prices (+19%) saw their value increase by €46m (+7%) to €668m. Sheep farmers saw a significant decline in the value of their output, which fell by €33m due to weaker prices (-3%) and lower volumes (-6%). With prices down by 4%, the value of Horses fell by €10m (-3%) to €305m. Higher prices (+4%) and output volumes (+4%) saw the value of Poultry production increase by €17m to €222m.
There was a steep drop in the value of milk. Prices contracted by 26% and with volumes down by 5%, the value of Milk fell by €1.5bn to €3.5bn.
The overall value of Crops decreased by €165m (-6%) to €2.5bn, but this figure masks some very significant reductions in individual crop values. Cereal producers experienced the largest reduction in their output values, which fell by €377m (-52%) to €344m. Both the price and volume of all three cereals fell in 2023. While the area sown with Cereals dropped by 6%, more significant were the lower yields, which combined resulted in the volume of Barley, Wheat, and Oats contracting by 31%, 40%, and 18% respectively. This sharp drop in volumes was exacerbated by lower prices, which averaged a 30% reduction across the three cereal types.
Other crops fared better. While volumes were down by 9%, stronger prices (+43%) led to the value of Potato production growing by €50m (+30%) to €220m. The value of Fresh Vegetables grew by €13m (+5%) due to prices rising by an average of 7%. Although there was almost no change in the volume of Forage Plants produced in 2023, higher prices (+12%) added an additional €160m to their value, which rose to €1.5bn.
When the value of Contract Work (€597m), Subsidies on Products (€85m), and Taxes on Products (€53m) are accounted for, the value of Agricultural Output at Basic Prices fell by €1.6bn (-13%) to €11.3bn.
Intermediate Consumption costs fell by €127m (-2%) to €7.8bn, as the cost of fertilisers, FISIM and feeding stuffs dropped. Fertiliser prices contracted by 22% and with volumes down by 13%, their cost fell by €400m (-33%) to €817m. FISIM charges decreased by €43m (-57%) but this drop should be considered in conjunction with the large rise in Net Interest payments (+€66m, +97%). The price of Feeding Stuffs rose by 1% but with the volume used on Irish farms down by 2%, expenditure on this item fell by €24m (-1%) to €2.3bn.
The cost of all other farm inputs rose in 2023. The cost of Forage Plants grew by €162m (+12%) to €1.5bn due to higher prices. Veterinary Expenses increased by €38m (+11%) to €390m due to the combined impact of higher prices (+6%) and volumes (+4%). Expenditure on Other Goods & Services rose by €38m (+6%) to €651m due mainly to higher prices (+5%).
The price of Maintenance & Repairs was up by 4%, and with volumes marginally higher, the result was an increase of €31m (+5%) to €634m in their cost. With regard to Seeds, while prices were up by just 2%, volumes rose sharply (+26%) and as a result, expenditure grew by €28m to €126m. The cost of Contract Work increased by €23m (+4%) to €597m, with higher prices accounting for 3% of this rise. Despite prices contracting by 3%, the cost of Energy & Lubricants increased by €10m (+2%) to €644m.
As the value of Agricultural Output at Basic Prices decreased by €1.6bn, Intermediate Consumption costs contracted by €127m, Fixed Capital Consumption increased by €45m, Other Subsidies less Taxes on Production decreased by €308m and Compensation of Employees costs grew by €39m, combined, these resulted in a drop of €1.9bn (-39%) to €2.9bn in the value of Operating Surplus. With Net Interest charges increasing by €66m and Land Rental costs growing by €81m, Entrepreneurial Income contracted by €2.0bn (-49%) to €2.1bn in 2023.
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Statistician's Comment
The Central Statistics Office (CSO) has today (29 August 2024) released Output, Input and Income Agriculture – Final Estimate 2023.
Commenting on the release, Mairead Griffin, Statistician in the Agriculture Accounts & Production Section, said: "This release is our final estimate of the value of agricultural outputs, inputs, and income for 2023. In addition to the usual updates resulting from the receipt of more accurate information on farm outputs and inputs, this release also incorporates changes resulting from using 2020 as the base year for agricultural prices, and a methodological change to how the value of potato production is estimated.
This final estimate shows a steeper drop in agricultural income than was previously estimated. While a fall of €1.6bn in the value of Agricultural Output at Basic Prices was less than our earlier calculation, at €127m so too was the decrease in Intermediate Consumption costs. Our final estimate for 2023 is that Agricultural Operating Surplus fell by 39% to €2.9bn while Entrepreneurial Income, which factors in the cost of interest payments and land rent on agricultural income, fell by 49% to €2.1bn.
Outputs
The two most notable points in relation to output values are the large drop in the value of Milk production, which fell by 30%, and Cereals, which contracted by 52%. The value of Milk, at €3.5bn, was down €1.5bn on its 2022 value due to output volumes decreasing by 5% and prices weakening by 26%. The value of Cereals fell to €344m, due to both lower output volumes and prices declining by an average of 30%.
The value of Livestock, at €4.6bn, saw a rise of just €7m on its 2022 value. However, it should be noted that the value of Cattle was marginally lower by €13m, Sheep values fell by €33m, a drop of 9%, and Horse values decreased by €10m. The value of Pig production rose by 7% to €668m due to prices increasing by 19%, while the value of Poultry grew by €17m to €222m due to both volumes and prices each rising by 4%.
Input costs
Overall, Intermediate Consumption costs fell by 2% in 2023 to €7.8bn. However, this overall change masks some significant increases and decreases in individual costs. The most significant reduction was in the cost of Fertilisers, which fell by €400m over the year, a drop of a third on the amount spent on fertilisers the previous year. The cost of FISIM fell by 57% or €43m, but in relation to financial costs, it should be noted that the reduction in FISIM charges was outweighed by the rise in Net Interest payments, which almost doubled, costing farmers an additional €66m in 2023.
While some costs did fall, others rose significantly. The items showing increases were Seeds (+28% or €28m), Veterinary Expenses (+11% or €38m), Crop Protection Products (+€11m), Maintenance & Repairs (+€31m), and Other Goods & Services (+€38m).
Based on the changes in output values and input costs, our current estimate is that agricultural Operating Surplus fell 39% to €2.9bn, but when Net Interest and Land Rental costs are accounted for, Entrepreneurial Income dropped by 49% to €2.1bn."