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Watch: Irish agriculture over the last 50 years


Dr Emma Dillon, Teagasc economist, takes us on a journey of the changing structure of Irish agriculture over the last 50 years

There has been a transformative change in Irish agriculture since joining the EEC 50 years ago, a sector now modernised, mechanised and specialised. Significant improvements in investment and farm management over the past five decades have resulted in considerable productivity and efficiency gains and increasingly improved sustainability performance. These changes reflect our evolution as a member state of the now European Union.

How has EU membership changed how we farm?

Irish farming now looks very different. There has been a large decline in the number of farms and the labour requirement on farms. The rapid structural change in farm numbers and size was particularly evident until the millennium. We now have less but larger farms and fewer farmers.
The rate of decline has slowed over the past two decades, with data from the latest census of agriculture in 2020 indicating that the number of farms in Ireland is now about 135,000 and those working on farms account for 4% of the total labour force.

There were a number of reasons for this farm consolidation;

Firstly, it was driven by economic development and the expansion of other sectors of the economy, which brought new employment opportunities for farm families. This helped farmers to diversify their sources of income, either to complement or in some cases substitute low levels of farm income.
Interestingly, the removal of the marriage ban on women working outside the home coincided with EEC membership as part of a general alignment of policies on gender equality. In addition, this facilitated the beginning of the dual income model that remains as important for Irish farm households to this day.
The increasing phenomenon of off farm employment and the growing importance of non-farm income to the viability of a large number of households was acknowledged by the National Farm Survey for the first time in 1993 when it published data on the number of farmers and their spouses working off farm.

Secondly, support received through the Common Agricultural Policy was often tied to production levels, which incentivised some farmers to expand their operations. Larger farmers also benefited from economies of scale, allowing them to produce additional food more efficiently and at a lower cost.

Thirdly, access to improved financial support through the CAP helped stabilise farm incomes and encourage on farm investment and modernisation. The steady decline in farm numbers and commensurate increase in farm size and specialisation resulted in a move away from mixed farming systems, which were so common on joining the EEC. This change has been fundamental, considering that about one quarter of farms were classified as a combination of cattle, dairying, rearing, and fattening in 1975.
The categorisation of farms has indeed changed, but the continued dominance of livestock systems remains a constant to this day. In terms of the transformation across other farm systems, in 1960, there were 111,000 pig farmers with an average herd size of eight pigs and a national output of less than 1 million.

Irish agriculture today

Today, Ireland has 280 commercial pig farms, comprising about 200 sow breeding and integrated farms with an average herd size of about 700 sows and 80 specialised finishing farms with a national output of 3.8 million pigs.

The forestry sector has also expanded since 1973, both in terms of plantings by the state and private farmers and landowners.

The agricultural area dedicated to horticulture has declined over time, with a large reduction in the number of growers who now operate at a much larger scale.

The growth of the mushroom sector over this period has been an outstanding success story.

Across the agricultural sector generally, improved mechanisation and technology adoption has reduced the amount of labour required on farms.
These developments have brought cost and labour advantages, but at the same time, some challenges in terms of the maintenance of soil quality and circularity for example. Technical improvements in farm machinery are reflected in the improved working capacity and sophistication of tractors with a two to threefold increase in power.

EU membership has vastly improved the market orientation of Irish agri food exports and quickly expanded the potential marketplace beyond Britain, through the EU single market and related global trade deals.

The move towards specialisation has allowed farmers to focus on products for export, in demand internationally and has improved our capacity to meet the required quality and regulatory standards.
It is important to add that while this has brought major economic benefits and improved efficiency, it also presents challenges, bringing with it increased exposure to market volatility.

Investment on farms has also increased dramatically since joining the EEC. This has certainly been instrumental in modernising the agricultural sector, and the availability of EU funds has played a significant role in this regard.

Increased household income from off farm sources has also played a key role in terms of investment in the farm business, with evidence from the National Farm Survey of off farm income, often spousal, being invested to grow and develop the farm.

Dairy

Taking a closer look at the dairy sector over the period, EU entry had an immediate impact in terms of Irish milk production. We have also seen a large-scale consolidation of milk processing facilities, with 124 Co-ops handling just over 2 billion litres of milk in 1972. That volume figure has now more than quadrupled, with the number of Co-ops down to 18. The value of milk processed on accession was equivalent to about €150,000,000. The value of our dairy exports last year was nearly 50 times that number.
The range of dairy products has also widened considerably over the past 50 years. While butter and skim milk powder still account for over half of Irish milk utilisation, developments over time have seen an increasing share of milk going towards cheese production and a range of newer protein and whey based products such as fat filled powders and specialised nutrition powders. We are now the number one exporter in the EU in terms of these.

Beef and Sheep

In terms of beef production, export trade has predominantly moved away from non-EU markets to the EU and UK in recent decades.
With the reduction and eventual elimination of export refunds. Continental Europe is also the primary destination for Irish sheep meat.

EU membership has modernised Irish agriculture

Irish farming has changed fundamentally over the past 50 years, in terms of scale and specialisation in particular. That said, very small farms continue to operate in some regions and still account for 15% of the agricultural land base.

The past decade has seen renewed growth in Irish agriculture, particularly for the dairy sector. However, alongside this is the broad recognition of climate change concerns and our obligations in improving farm sustainability.

Likewise, in terms of generational renewal, Irish farmers, like farmers all across Europe, are getting older, the challenge of succession and how we farm into the future are key questions.

European policy will continue to guide Irish farming as it has since 1973, by providing financial support, facilitating trade and supporting rural development.
EU membership has modernised our farming infrastructure, led to increased sectoral productivity and improved farm incomes.

On Friday, 27 October at the Teagasc Research Centre, Ashtown, a dynamic half-day conference jointly organised by Teagasc and the Department of Agriculture, Food and the Marine took place. The event examined the remarkable impact on 50 years of farming and food production while exploring the future of Irish agriculture. It was a celebration of history and a glimpse into the future! Find out more about the EU 50 event here.