NI agriculture: Farmers escape worst of cost-of-living crisis, new figures suggest

Farmers reduced their spending on fertiliser and feed in 2022 in light of soaring average costs

Northern Ireland's farming sector is escaping the worst of the cost-of-living crisis, new figures suggest.

Farm incomes rose by 11.3% in 2022 in real terms, provisional data from the Department of Agriculture, Environment and Rural Affairs (Daera) shows.

The total income from farming (TIFF) increased from £515m in 2021 to £605m in 2022.

TIFF is the return on own labour, management input and own capital invested.

Farmers reduced their spending on fertiliser and feed in 2022 in light of soaring average costs.

Profits for farms are expected to rise by 10% in 2022-23, to £47,305.

Daera said the increase was particularly marked for dairy farms due to the higher raw milk price off-setting increased input costs.

But incomes on cereal, sheep and cattle (less favoured area - a classification of land that is not as productive) and sheep and cattle on lowland farms are expected to fall 33%, 66% and 54% respectively.

The estimated value of subsidies in 2022 was £297m, a figure Daera said had decreased by 4% compared with 2021.

Dairy farming remains the largest sector with a turnover of £1.13bn in 2022, an increase of 40%.

All sectors including poultry, pigs, sheep and horticulture had an increase in their turnover and all intensive sectors had an increase in their producer prices, with poultry up 25%, eggs rising by 13% and and increase of 19% for pigs.

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Output value of cattle: up 16% to £603m

Average farm gate milk price: up 41% (44.5p per litre)

Sheep: up 6% to £106m

Poultry: up 16% to £376m

Pigs: up 24% to £259m

Feed costs: up 24%

Average fertiliser costs: up 148% per tonne

Analysis: Things can change quickly

That they are struggling is an often-heard cry from the farming sector, but against a backdrop of soaring feed, fertiliser and fuel costs, these figures still stand out.

Farm profits are notoriously volatile, so while the figures are good for now, farmers are all too aware that things can change very quickly.

Reducing spend on fertiliser can only last so long, animals still need to be fed and enclosures need to be kept warm.

So while efficiencies have been made there may not be too much more fat to be cut, but some may ask if the cost-of-living crisis is truly being felt by the farming sector.