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This paper examines the performance and structural changes in Irish agriculture over the 30 years since EU membership, in light of the immediate challenges to the future of farming. It discusses the declining role of farming, trends in output and input use, changes in livestock numbers, declining terms of trade, and the impact of direct payments on income stability. The paper also explores the need for viable alternative enterprises to maintain rural areas.
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Structure and Performance Trends in Irish Agriculture 1973-2003 Alan Matthews Trinity College Dublin
Task of the paper • In the light of the immediate challenges to the future of farming… • … to examine performance and structural change in Irish agriculture in the 30 years since EU membership • Part of the ‘context and rationale for the development of alternative farm enterprises’
What can we say about growth? • Growth momentum appears to be exhausted • …not because of the exhaustion of productivity growth… • …but because of constraints on increasing output… • …the change in policy priorities to give more emphasis to environmental values… • …and reducing economic incentives
What can we say about income? • Stability in the aggregate income from farming has been supported by increased direct payments • …but no budget to pay further compensation in the unreformed sectors.. • … and inflation is eating away at the real value of existing payments.. • …off-farm income will continue to increase in importance in farm households
What can we say about structures? • Rapid structural change at the enterprise level.. • .. and increasing minimum viable farm size.. • .. contrast with the unchanging pace of decline in farm numbers and employment regardless of economic conditions.. • .. and the constipated state of the land market
What can we say about structures? • Support to drystock enterprises is encouraging farmers to hold on to land because of the subsidies this attracts while most of the income is coming from off the farm.. • ..but drystock is now totally uncompetitive at market prices.. • Would funds be better directed at creating viable alternative enterprises to maintain rural areas?