Tuesday, October 7, 2014

7/10/2014: Subsidies Rained on Irish Agriculture: 2013

Recently, CSO published accounts for Irish Agricultural sector for 2013. And what a reading these make.

"In 2013, net subsidies accounted for 66.8% of agricultural income (operating surplus) at state level." In other words, say 'thanks EU' for paying 2/3rds of our farmers' income (or whatever you might call it)...

"In the Border, Midland and Western region, net subsidies accounted for 108.8% of agricultural income, while in the Southern and Eastern region net subsidies accounted for 51.0% of agricultural income." Net subsidies accounted for 176.7% of operating surplus in the Midlands.

A table breaking down the above:

Net Subsidies fell from EUR1.801 billion (73.6% of income) in 2011 to EUR1.63 billion (73.4% of income) in 2012 to EUR1.505 billion (68.8% of income) in 2013. So over 2011-2013, net subsidies shrunk by 16.4%. Meanwhile, operating surplus (income) fell from EUR2.447 billion in 2011 to EUR2.221 billion in 2012 before rising slightly to EUR2.254 billion in 2013 - a net loss over 2 years of 7.9%.

Chart to illustrate net subsidies share of income:

Good thing we have EU taxpayers to sustain these levels of productivity in our indigenous champions of traditional life...

1 comment:

Colm Barry said...

"... net subsidies accounted for 66.8% of agricultural income (operating surplus) ..." The situation is even worse in some sectors that are now completely dependent on subsidies or they would barely exist. Whatever food secure may be worth to us this is a failed approach. No market can work with such incentives distortion. Plus it creates surpluses that actually are sold to e.g. Africa so cheap that local small-holders earning less than a dollar a day cannot compete.