Part-time farmers very exposed to recession, research claims

PART-TIME farmers are very exposed to the recession, according to new research from Teagasc, the agriculture and food development…

PART-TIME farmers are very exposed to the recession, according to new research from Teagasc, the agriculture and food development authority.

The number of farm households where the spouse or operator was working off the farm had increased from 37 per cent in 1995 to 58 per cent now, the report said.

The reliance on non-farm income was also increasing. In 1994, about 54 per cent of income in farm households that engage in off-farm employment was still derived from the farm. By 2006, this had fallen to 34 per cent.

"The opportunities available to farmers are likely to be significantly curbed due to the economic slowdown," said the analysis, co-ordinated by Mark O'Brien and Thia Hennessy, in conjunction with Fás, the Central Bank and Trinity College Dublin.

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"Data shows that farmers that work outside the farm are typically employed in the agri-food sector, as contractors or in food processing, the construction sector and traditional manufacturing."

"These are the sectors of employment that are most vulnerable to the recent slowdown. Furthermore, farmers tend to be employed at the lower skilled end of the employment spectrum which further exacerbates their exposure to the downturn," it added.

The research examined the contribution of off-farm income to the viability and sustainability of farm household and farm productivity.

It found increased reliance on off-farm income had improved the welfare of farm families and links between off-farm income and farm investment.

"In 2001, the net income per household member in farm households lagged behind the average for rural non-farm and urban households; but by 2006 average farm household income had surpassed other household types,"it said.

"However, the analysis showed that income inequality remains high among farm households. Farmers relying solely on farm income have a higher probability of poverty and deprivation," it added.

The results showed when the farmer works off the farm, the investment in the farm business usually declines.

When the farmer works full-time on the farm and the spouse works off the farm, the investment in the farm business was usually higher than when no off-farm income is present.