Irish Agricultural Contracting Sector tops €1 billion mark

The value of the Irish Agricultural Contracting sector has now exceeded the €1 billion mark, for the first time ever, based on the latest data from the Teagasc National Farm Survey (NFS) 2024 report, issued last week.

The latest Teagasc National Farm Survey (NFS) 2024 report showed that Irish farmers increased their spending on Agricultural Contractor services (Machinery Hire) from €7,340 in 2023 to €7,928 in 2024, a modest 3.92% increase in cost to farmers, at a time of continuing inflation in the agricultural machinery input sector. Across the 135,000 farms listed in the most recent Central Statistics Office (CSO) report that equated to a sector turnover in Ireland for 2024 at €1.07 billion and it further emphasises the importance of the Agricultural Contracting sector for the sustainability of a cost-effective agricultural industry in Ireland.

Overall, farm spending on Direct Costs dropped by 6.07%, according to the Teagasc report, which meant that Agricultural Contracting services provided to farmers increased as a percentage of total Direct Farm Costs from 14.61% to 16.80%, a 15% increase.

The latest Teagasc National Farm Survey (NFS) 2024 report also showed that this increased reliance on a vibrant and efficient Agricultural Contractor sector allowed farmers to curtail their machinery investments as evidenced in the Total Machinery Overhead Costs on Irish farms. This figure reduced by 16.9% from €15,623 to €12,977, reflecting how farmers have appreciated the true value that their Agricultural Contractors can provide in terms of efficiency, skilled operators and cost-effectiveness.

“Despite the lack of financial support for the Agricultural Contracting from the Department of Agriculture, Food, and the Marine (DAFM) under the TAMS schemes, our FCI members continue to invest in new machinery systems to meet the needs of a modern and technology-driven Irish farming sector,” said John Hughes, National Chair of the Association of Farm and Forestry Contractors in Ireland (FCI). “Irish Agricultural Contractors have shown their support for farming, by their commitment to continuing and ongoing technology investments, including in excess of €15 million invested on new silage harvesting machines alone, this year. But unfortunately, DAFM fails to find the necessary mechanisms to support the long-term sustainability of our sector, which the Teagasc NFS 2024 report has now shown, is now providing a more significant input in terms of Direct Costs on Irish farms, than the fertiliser sector,” said John Hughes.