Farmers Will "Wait and See" According to Teagasc Survey

14 December 2004

Farmers are still not clear how they will react to the new policy environment and many are responding to questions about cattle numbers and crop acreages by stating that they will "wait and see", according to Liam Connolly, Head of the National Farm Survey at Teagasc, speaking at the Situation and Outlook Conference today.

When pressed, reductions in sheep numbers of 6% and of cereal acreages of 12% emerged as likely medium term responses, with an increase in area devoted to forestry.

Reductions of suckler cow numbers on dairy and cattle farms would be offset by increases on tillage and sheep farms.

The survey also reported on farmers investment plans.

Planned investment at the time of the survey was 22% higher than that planned at the same time last year. Investment in machinery is up 64% and in buildings up 42%, while planned investment in milk quota and land is down.

However actual investment by farmers in 2004 was over twice that planned. Investment in machinery came to EUR275m compared with EUR64m planned.

Investment in buildings came to EUR155m, compared with EUR117m.

Investment in milk quotas came to EUR43m. Farmers with milk quotas were asked whether they intended to sell milk quota post decoupling and 8% said they would do so.