Teagasc National Farm Survey Research Articles

Generational Renewal and Farm Succession: Insights from Ireland

SummaryWe use Teagasc National Farm Survey (NFS) data to establish a better understanding about the age profile of people engaged in farming in Ireland and the related issue of farm succession. Insights are drawn from related research on the potential for farm partnerships to assist in improving generational renewal. The findings from the Teagasc NFS indicate a more complex relationship between economic performance and farm succession than is typically portrayed in the economic literature. The results indicate that in the non‐dairy cattle system, the proportion of farm operators with an identified successor is lower for viable farms relative to non‐viable farms and lower relative to viable farms in other farming systems. Cluster analysis of a sample of dairy farms indicates that the presence of young people in the household is just as important as farm economic viability in determining whether or not a farm successor is identified. The Teagasc NFS analysis indicates that many farms have young people contributing in terms of labour but delayed succession means fewer young farmers taking the role of farm manager. There is scope to increase the use of Farm Partnerships as pathways for younger farmers to progress from contributing labour on the farm to taking on a management role in the farm.

The empirical demand for farm insurance in Ireland: a quantile regression approach

PurposeThe purpose of this paper is to analyse the association between farm/farmer characteristics and unsubsidized farm insurance premium expenditure in Ireland. The distribution of farm insurance expenditures is wide, and it is important to understand the extent to which individual factors influence demand for different levels of insurance premium.Design/methodology/approachThe quantile regression approach and farm accountancy data from the Teagasc National Farm Survey are used to model the association between farm/farmer characteristics and farm insurance demand in Ireland.FindingsAsset values (livestock, buildings and machinery) are positively associated with total insurance expenditure. Both forestry area and crop area are significantly associated with farm insurance expenditure with a stronger influence on the middle and upper part of the distribution. The interaction between farm income and farmer age is positively associated with insurance expenditure pointing to the importance of farm income protection.Research limitations/implicationsThe research is mainly concerned with insuring against substantive risks, which are capable of threatening the asset base and continuation of the farm business. Future research can integrate questions in relation to farm safety and farmer health with research on the economic survival of the farm business.Practical implicationsFarmers in Ireland adopt unsubsidized farm insurance as a risk management tool. This situation is relevant to other EU member states including Belgium, Denmark, Germany and Sweden. The findings can be used to inform stakeholders and policymakers about the relative impact of different factors on insurance expenditure.Originality/valuePrevious research has typically focused on the linear relationship between farm/farmer characteristics and insurance demand without accounting for variability across the size distribution. This research is based on the quantile regression approach where the association between farm/farmer characteristics and farm insurance expenditure can be assessed at different points of the distribution.

Putting social into agricultural sustainability: Integrating assessments of quality of life and wellbeing into farm sustainability indicators

AbstractThe measurement of societal wellbeing has moved beyond gross domestic product and has emerged as an important factor within the paradigm of holistic sustainability assessment, including agricultural sustainability. At this juncture, knowledge gaps exist between agricultural policy priorities and data infrastructure to evaluate social sustainability issues, particularly regarding farmer sustainability. This study aims to address this gap through the development of a Farmer Sustainability Index (FSI), a composite index comprising three dimensions: farm continuity, community and social connections and farmer comfort. Socio‐demographic data were extracted from both core and supplementary EU Farm Accountancy Data Network data from the 2018 Teagasc National Farm Survey in Ireland. Statistical analysis was undertaken to compare the distribution of FSI and the individual dimension scores for farms across three socio‐demographic variables: farm system, farmer age cohort and region. The FSI results demonstrate that cattle farmers, farmers over 60 years of age and those residing in regions with poorer infrastructure experience lower levels of sustainability in comparison to other farmers, while the variation in FSI dimension scores identifies numerous sustainability risks to farms with differing socio‐demographic constructs. It is important for agricultural policy to be cognisant of these differences and the relational nature of these risks, to meaningfully address matters pertaining to sustainability, and the FSI provides an effective tool to assist policy in this regard.

Mineral and vitamin supplementation on sheep farms: a survey of practices and farmer knowledge.

Mineral and vitamin (MV) supplementation is a routine management practice in many pasture-based systems of prime lamb production. The aim of the current study was to establish the MV supplementation practices on Irish sheep farms and farmer’s knowledge and opinions in relation to supplementation strategies and MV deficiencies. A survey, consisting of 22 questions, was administered to all farmers participating in the Teagasc National Farm Survey (NFS) in 2016 which had a sheep enterprise (n = 177). The Teagasc NFS is a stratified random sample of farms with each farm assigned a weighting factor so the results are representative of the national population of farms. Sixty-nine percent of respondents supplemented their flocks with MV in addition to concentrate feed. Twenty-two percent supplemented based on laboratory analysis results (soil, herbage, blood, or tissue analysis). Thirteen percent supplemented based on veterinary advice with only 30% of this advice based on laboratory analysis results. Sixty-five percent supplemented for reasons other than laboratory analysis or veterinary advice; mainly due to tradition and previous experience. The most common stages to supplement ewes were pregnancy (78%), lactation (61%), and pre-mating (50%). Fifty-one percent supplemented lambs post weaning. Mineral buckets (free access solidified molasses-based licks containing MV and in plastic containers) and drenching (oral dosing with MV containing liquid) were the most common methods of supplementing ewes and lambs, respectively. Generic MV products (containing multiple minerals and vitamins) were the most commonly used followed by cobalt only products. Ease of use/labor requirements and cost were the most important factors influencing choice of supplementation method. Forty-six percent rated their level of knowledge on mineral requirements of sheep as “limited or no education/knowledge”. Supplementation with MV did not increase (P > 0.05) ewe productivity (number of lambs reared/ewe joined) or gross margin/ewe. It is concluded that most supplementation decisions in sheep production systems are undertaken in the absence of veterinary advice or laboratory results, therefore are not evidence based. Knowledge transfer activities need to be designed to communicate best practice as regards MV supplementation.

A Survey of Farm Management Practices Relating to the Risk Factors, Prevalence, and Causes of Lamb Mortality in Ireland.

Simple SummaryA reduction in lamb mortality would benefit farmers both economically and ethically. The major causes of lamb mortality are similar worldwide. Targeting the specific causes can result in reduced lamb mortality. This involves identifying underlying factors associated with lamb mortality and subsequently recommending changes to management practices. The objective of this study was to investigate the risk factors associated with lamb mortality on Irish sheep farms to provide a greater understanding of the necessary management practices required to reduce lamb mortality. This was achieved by identifying relationships between on-farm practices and risk factors of lamb mortality associated with these practices. Predators, lamb birth weight, and diseases were perceived by farmers to be the main causes of lamb mortality. Individual lambing pens were used on most sheep farms but were not cleaned and/or disinfected on 26% of them. Lamb mortality tended to be lower on farms that used best-known practices. Full-time farmers that used hospital and individual pens had a higher gross margin (€18/ewe). Management systems affect both lamb mortality and flock gross margin. Every 1% decrease in average lamb mortality across Irish flocks is worth ~€3 million annually to the Irish sheep sector.Lamb mortality is a key factor influencing ewe productivity and profitability. The current study investigated risk factors associated with and management practices implemented on sheep farms to reduce lamb mortality. A survey consisting of 13 multiple-part questions (57 separate questions) was administered to all sheep farmers participating in the Teagasc National Farm Survey, representative of the Irish national population of sheep farms. A total of 60% of respondents identify mating or lambing date, and this practice tended to be associated with reduced lamb mortality (1.2%, p = 0.08). Individual lambing pens were used by 88% of farmers, but 26% did not clean or disinfect them. A total of 79% and 9.5% of farmers applied iodine to all lambs’ navels and administered antibiotics to all lambs to treat and/or prevent diseases, respectively. Most farmers vaccinated their ewes (86%) and lambs (79%) against clostridial diseases and/or pasteurellosis; 13% vaccinated against abortion agents. Lamb mortality tended to be lower (Kruskal–Wallis (KW) = 2.749; p = 0.09) on farms that used stomach tubing, heat box, iodine, hospital, and individual pens compared with farms that do not implement all those practices. Predators, lamb birth weight, and diseases were perceived by respondents to be the three main causes of live-born lamb mortality. The gross margin is significantly higher on lowland farms by €37 per ewe compared with hill farms (Kruskal–Wallis (KW) = 4.056; p < 0.001). The combination of full-time farming and the use of hospital and individual pens improved gross margin (€18/ewe, p = 0.028). It is concluded that on-farm management practices affect both lamb mortality and flock gross margin.

Embedding animal welfare in sustainability assessment: an indicator approach

In line with growing consumer interest in sustainable food production, a number of farm-level sustainability indicator studies have been published in recent years. Despite the importance of animal welfare, many such frameworks fail to adequately take account of it, mostly due to difficulties in accessing suitable data. This paper demonstrates that it is possible to develop indicators of animal welfare that can be embedded within a wider sustainability framework using a representative farm-level dataset such as the European Union (EU) Farm Accountancy Data Network (FADN) for Ireland, the Teagasc National Farm Survey. The paper presents a set of sustainability indicators for dairy farms in Ireland for the 2014–2017 period and examines the impact of policy reform on sustainability performance. Headline results show that welfare standards on dairy farms in Ireland have remained stable over the period despite the considerable intensification of the dairy sector following EU milk quota removal. Furthermore, dairy farms that have expanded herd size significantly have improved welfare standards more than farms that have not increased production. An analysis of synergies and trade-offs between the various aspects of sustainability reveals that positive correlations exist between welfare standards and economic and environmental performance. The analysis facilitates the identification of win-win farm-level strategies that can be adopted to improve economic, environmental and animal welfare outcomes. The framework developed here presents opportunities for evaluating policy impacts at the farm level on various aspects of sustainability. The use of the FADN demonstrates the capacity to extend such an approach across the EU.

Weather, Workload and Money: Determining and Evaluating Sources of Stress for Farmers in Ireland

ABSTRACT The demands of modern farming can place substantial stress upon the farmer, adversely impacting their wellbeing. This study identifies both the prevalence of stress and assesses the demographic, farm, and social characteristics that impact the incidence of stress. We report the results of a survey of a nationally representative sample of farm enterprises in Ireland undertaken in association with the Teagasc National Farm Survey (NFS) in 2018, which saw 736 questionnaires completed by farm operators. Frequency analysis is used to report the primary sources and prevalence of stress. A probit model is developed identifying and quantifying the factors that impact the incidence of stress. There were 57% of farmers who reported experiencing stress resulting from their farm work. Key sources of stress included “poor weather”, (47%), “workload” (32%) and “financial” concerns (28%). The results of the probit model establish that the effect of age on the incidence of stress is significant, positive, and non-linear, indicating as farmers get older they are more likely to experience stress but at a declining rate. Operating a sheep farm system, as opposed to any other type of farm system, reduces the probability of stress. Working off-farm also reduces the probability of stress by 0.097, other things being equal. The findings highlight variance in the levels of stress reported by farmers by age and farm system, and consequently, the need to develop targeted supports that take consideration of differences within the population of farmers and farm enterprises.

Establishing nationally representative benchmarks of farm-gate nitrogen and phosphorus balances and use efficiencies on Irish farms to encourage improvements

Agriculture faces considerable challenges of achieving more sustainable production that minimises nitrogen (N) and phosphorus (P) losses and meets international obligations for water quality and greenhouse gas emissions. This must involve reducing nutrient balance (NB) surpluses and increasing nutrient use efficiencies (NUEs), which could also improve farm profitability (a win-win). To set targets and motivate improvements in Ireland, nationally representative benchmarks were established for different farm categories (sector, soil group and production intensity). Annual farm-gate NBs (kg ha−1) and NUEs (%) for N and P were calculated for 1446 nationally representative farms from 2008 to 2015 using import and export data collected by the Teagasc National Farm Survey (part of the EU Farm Accountancy Data Network). Benchmarks for each category were established using quantile regression analysis and percentile rankings to identify farms with the lowest NB surplus per production intensity and highest gross margins (€ ha−1). Within all categories, large ranges in NBs and NUEs between benchmark farms and poorer performers show considerable room for nutrient management improvements. Results show that as agriculture intensifies, nutrient surpluses, use efficiencies and gross margins increase, but benchmark farms minimise surpluses to relatively low levels (i.e. are more sustainable). This is due to, per ha, lower fertiliser and feed imports, greater exports of agricultural products, and for dairy, sheep and suckler cattle, relatively high stocking rates. For the ambitious scenario of all non-benchmark farms reaching the optimal benchmark zone, moderate reductions in farm nutrient surpluses were found with great improvements in profitability, leading to a 31% and 9% decrease in N and P surplus nationally, predominantly from dairy and non-suckler cattle. The study also identifies excessive surpluses for each level of production intensity, which could be used by policy in setting upper limits to improve sustainability.

Measuring total factor productivity on Irish dairy farms: a Fisher index approach using farm-level data

This paper presents a Fisher index measure of the total factor productivity (TFP) performance of Irish dairy farms over the period 2006–2016 using the Teagasc National Farm Survey (NFS) data. The removal of milk quotas in 2015 has led to an increase of over 30% in dairy cow numbers since 2010, and although suckler cow numbers have dropped slightly, the total number of cows in Ireland reached an all-time high of 2.5 million head in 2016. This large increase adds to the environmental pressures attributed to agricultural output and puts the focus firmly on how efficiently the additional agricultural output associated with higher cow numbers is produced. The primary purpose of this paper is to identify a standardised measure of the TFP performance of Irish dairy farms that can be routinely updated using Teagasc NFS data. We found that relative to 2010 the TFP of Irish dairy farms has increased by almost 18%; however, in one production year 2015, when milk quota was removed, the TFP measure increased by 7% and TFP continued to grow by 2.5% in the production year 2016. It would seem therefore that the removal of the European dairy quota system has resulted in a windfall gain for Irish dairy farmers but that productivity gains are continuing. Future data will be required to investigate the longer-term TFP performance of Irish dairy farms in the post-milk quota era.

Towards a better measurement of the social sustainability of Irish agriculture

There exists a need to analyse and develop the social aspects of agricultural sustainability. Distinct gaps between agricultural policy priorities and the data infrastructure needed to develop metrics for policy evaluation at farm level exist, particularly regarding the social dimension of sustainability. This paper aims to examine the current social sustainability frameworks in operation across Europe and beyond, with a view towards expansion using Irish Farm Accountancy Data Network (FADN) data from the Teagasc National Farm Survey. A stakeholder consultation process, featuring policymakers, farm data recorders, academic researchers amongst others, highlighted pertinent concerns regarding the social sustainability of agriculture. Issues such as farmer stress, work/life balance, generational renewal and the viability of rural areas featured as priority concerns. Issues such as these have been identified as key areas of concern within the new common agricultural policy which supports the continued development of specific indicators of social sustainability.

Greenways, recreational access and landowner willingness to accept: a contingent valuation study of farmers in Ireland

There are ambitious plans to construct an extensive network of off-road walking and cycling routes, known as greenways, across Ireland. However, land acquisition has proven challenging in some rural areas. This paper uses a contingent valuation study, based on the Teagasc National Farm Survey (NFS) of Ireland, to explore farmers’ willingness to participate in greenway development. The results reveal that farmers are split on the issue of greenway land acquisition: approximately half would not allow a route to run through their farm, irrespective of compensation. Farmers’ main concerns in this regard are: insurance, impact on farming operations and nuisance/crime. Of the farmers willing to participate in greenway development, the mean (once-off) payment required is €56,000 per kilometre of greenway length. These findings suggest that Irish Government agencies and local authorities must work to alleviate farmers’ concerns and undertake extensive consultation to yield acceptable route options.

A Microsimulation Model for the Land Rental Market in Irish Farming

In this paper, we utilize Teagasc National Farm survey data to analyse the agricultural land rental market in Ireland with a newly developed agent-based microsimulation model. This model is compared to an equilibrium model of the land rental market. We conclude that the microsimulation model has a number of advantages over the equilibrium model in addressing the interactions between landowners and tenants and dealing with farm size concentration. The equilibrium model retains some advantages in dealing with the question of price determination and in illustrating the potential surpluses to be gained from a more active land rental market.

Institutional drivers of land mobility

PurposeThe purpose of this paper is to examine the role of institutional factors in agricultural structural change in the European Union (EU) using the case study of land mobility in Ireland. A range of agricultural land use options are compared in order to examine the effect of domestic and EU policy instruments on land mobility.Design/methodology/approachUsing socio-economic data from the Teagasc National Farm Survey, three hypothetical farms are created using a microsimulation approach to compare incomes across farm systems and land use options. Tax and subsidy policies are applied to derive returns for the hypothetical farms under a variety of land use scenarios.FindingsThe analysis finds that in comparing four hypothetical scenarios, leasing out agricultural land on a long-term basis can prove more profitable for cattle and tillage farmers than farming the land. Only dairy farmers derive consistently higher disposable incomes from farming their land as opposed to leasing it out. Changes in CAP rules can also negatively affect farmers taking advantage of Ireland’s tax-based leasing incentives.Originality/valueA gap in the literature exists in terms of how institutional factors may act to prevent either land supply or demand channels from functioning properly. This paper addresses that gap, using Ireland as a case study.

Sustainability levels in Irish dairy farming: a farm typology according to sustainable performance indicators

Feeding the world’s population in a sustainable manner is one of the key challenges facing the future of global agriculture. The recent removal of the milk quota regime in the European Union has prompted an expansionary phase in dairy farming, especially in Ireland. Achieving this expansion in a sustainable manner is crucial to the long-term survival and success of the Irish dairy sector. In this paper we examine the sustainability of Irish dairy farming, defining ‘sustainability’ as economically profitable, environmentally friendly and socially efficient. A typology of Irish dairy farms has been created using data on profitability, environmental efficiency and social integration derived from the Teagasc National Farm Survey. Economic, social and environmental performance indicators were determined and aggregated and then used in a multivariate analysis for the identification and classification of farm clusters. The purpose of this study to classify Irish dairy farms using performance indicators, thereby, assisting policy makers in identifying patterns in farm performance with a view to formulating more targeted policies. Two of the three clusters elicited from the analysis were similar in regards to their respective indicator scores. However, the remaining cluster was found to perform poorly in comparison. The results indicate a clear distinction between ‘good’ and ‘weak’ performers, and the positive relationship between the economic, environmental and social performance of Irish dairy farms is evident.

The single farm payment and income risk in Irish farms 2005\u20132013

Agricultural income volatility has become a major hurdle for Irish farmers and policymakers to overcome in their drive to increase investment, production and ultimately income in the sector. This paper studies data from 927 farms in the Teagasc National Farm Survey between 2005 and 2013, the first 9 years of the decoupled subsidy era. The primary income support for European farmers, the single farm payment (SFP), is analysed in the context of its relationship with market income risk, i.e. farm income excluding subsidies. Detrended measures of market income variability are regressed on a large set of control variables. The findings suggest that the amount of SFP received by farmers has a strong and statistically significant relationship with agricultural income volatility.

Developing farm-level sustainability indicators for Ireland using the Teagasc National Farm Survey

Abstract In the context of an expanding, export-dependent agri-food sector, indicators of sustainable development and intensification are necessary to measure, assess and verify the comparative advantage afforded by Ireland’s natural pastoral-based food production systems. Such indicators are also necessary to ensure that we produce more food with less adverse impacts on the Irish environment, climate and society. This article outlines the development of farm-level indicators that refect the multifaceted nature of sustainability, which is encompassed in economic, environmental and social indicators. The role of innovation in farm sustainability was also examined. A comparison of indicators across Irish farm systems showed that dairy farms, followed by tillage farms, tended to be the most economically and socially sustainable farm systems. In relation to greenhouse gas emissions in particular, the top-performing dairy farms, in an economic sense, also tended to be the best-performing farms from an environmental sustainability perspective. This trend was also evident in relation to the adoption of innovative practices on farm, which was found to be strongly correlated with economic performance.

Policy drivers of farm succession and inheritance

Farm succession and inheritance is increasingly considered a complex phenomenon which not only affects core dimensions of farm family life but also the agricultural sector more widely. Intergenerational farm transfer in particular is increasingly viewed as fundamental to the sustainability and development of global agriculture. In the majority of EU countries, the average age of farmers is increasing, while the number of farmers under 40 years of age is decreasing. There is growing concern that this demographic trend may have negative impacts on the agricultural industry because it is younger and not older farmers who are associated with more efficient and effective production practices. The question of what motivates decisions to transfer farms is a complex one, and research to date has not apparently enlightened agricultural policy to the extent that current trends towards an ageing farm population are being managed. This research aims to investigate economic and financial aspects of the policy drivers of farm succession and inheritance in Ireland to understand what it is about the policy environment that is failing to stimulate higher levels of farm transfer. It draws on the Teagasc National Farm Survey data which provides Irish data to the Farm Accountancy Data Network in the European Commission. A hypothetical microsimulation model is used to investigate economic factors of farm transfers, with scenarios created to test these factors and their impacts on the transfer process. The Net Present Value (NPV) of income streams for farmers and their successors are calculated to assess which scenarios have the highest/lowest financial effects. The findings illustrate a range of possible scenarios for farm succession/inheritance, with some results indicating that under current policy retaining a farm until death may be more economically beneficial to a farmer than transferring land before death.

Farm income variability and off-farm employment in Ireland

Purpose The purpose of this paper is to identify the potential relationship between farm income variability and off-farm employment decisions in the short and medium term for the case of Irish farm operators. Design/methodology/approach Panel probit models of off-farm labour supply are estimated using Teagasc National Farm Survey data for Irish farms. The framework is based largely on standard expected utility but includes a constraint for recent employment history. Findings The analyses identifies some evidence of a positive association between farm income variability and off-farm employment in the medium term but no significant relationship in the short term. This suggests that off-farm employment is part of a wider portfolio decision but is not a strong solution to short-term farm income shocks. Practical implications European farmers increasingly face high income variability but financial risk management tools are not sufficiently developed or widely accessible to assist farmers in managing the associated risk. This deficiency can have negative implications for household economic welfare and future farm investments and hence the future farm income. Off-farm employment can form part of a wider medium-term portfolio strategy but more effective tools are also required for risk management particularly in dealing with short-term volatility and where off-farm employment is not a realistic endeavour given time constraints and/or demographics. Originality/value The estimation of farm income variability includes a detrending method thus reducing the likelihood of overestimating farm income variability for farms in deliberate expansion or decline. While previous research has typically focused on the short-term response of farmers to historical farm income variability, this research has distinguished between the short and medium term.

Measuring progress in agricultural sustainability to support policy-making

The concept of sustainability is one of the forefront issues in discussions of the challenges facing global agriculture, given the mounting pressure to increase food production in both socially responsible and environmentally friendly ways. From the perspective of Irish agriculture, sustainable intensification is of particular relevance, given ambitious targets to increase milk production in the context of European Union (EU) milk quota removal in 2015. A series of farm-level sustainability indicators are developed here using the Teagasc National Farm Survey FADN (Farm Accountancy Data Network) data for Ireland from 2012. Three dimensions, reflecting the multifaceted nature of sustainability (environmental, economic and social) are considered. Given the environmental challenges inherent in the sustainable intensification of agriculture, it is encouraging to observe that the more intensive, top performing farms (in an economic sense) emit relatively less greenhouse gases when compared to their less intensive counterparts. Conversely, the better performing farms in economic terms tend to have a higher nitrogen surplus per hectare on average. This is consistent with their higher rates of production intensity, but poses a challenge in terms of sustainable intensification and expansion. That said this analysis demonstrates that the nitrogen use efficiency of milk production is positively correlated with economic performance, with more intensive farms producing relatively more milk per kilogram of nitrogen surplus. From the perspective of social sustainability, demographic traits also tend to be positively correlated with economic performance. Given a growing recognition of the need for interconnected policy in the area of sustainability, this research should help inform policy debates and provides a guide for the undertaking of similar assessments elsewhere.

Hidden Underemployment Among Irish Farm Holders 1996-2011

This paper examines the factors driving hidden underemployment on Irish farms during the course of the economic boom in Ireland and the subsequent economic decline post 2008. This measure of hidden underemployment is due to differences between the farmer‟s reported amount of labour and the standard labour requirement estimated in the Teagasc National Farm Survey. Hidden underemployment can be attributed to a number of factors relating to inadequate employment situations as described at the 16th International Conference of Labour Statisticians (16th ICLS) such as low productivity, casual work practices and the poor utilisation of skills and other factors specific to agriculture and/or self employment. We place particular attention upon the potential role of off-farm labour supply in solving the underemployment problem. We use a two-stage residual inclusion model and a random effects probit model to examine the forces behind farm underemployment. This paper provides an interesting set of results given that the end of the economic boom phase co-incided closely but not precisely with the decoupling of farm-level subsidies in 2006.