The leader of the Irish Cattle and Sheep Farmers' Association, Gabriel Gilmartin, has said he is glad that CSO figures have shown a 28% increase in the average farm income in 2010 and he is proud that the agri sector is showing signs of growth.
However, he added that 2009 was an especially appalling year for farm incomes. Therefore, while average incomes levels are up, they are only repairing the damage done in previous years.
The average farm income is still less than €20,000, which is not a sustainable figure for any business, he said.
Mr Gilmartin said output costs have seen major increases, as high 20% in some areas, and this tarnishes the overall income increase.
There have been significant increases in output costs in the areas of fertiliser, feed and fuel.
These figures, he said, also show that vital schemes such as the Single Farm Payment, AEOS and others need to be protected as they are a necessity to the overall viability of farms.
IFA
The IFA President said CSO figures showing a 28% increase in farm incomes last year confirm the recovery in agriculture, but insisted average farm incomes are still only €18,000.
John Bryan said the single farm payment and the farm schemes continue to be crucial and make up a significant proportion of net farm income.
Teagasc figures show that direct payments make up 94% of farm income last year.
He said the income increase comes after two very difficult years in agriculture, where incomes dropped by over 40%.
Mr Bryan said, in the context of the EU budget proposals and decisions on the public finances, the figures demonstrate the importance of direct payments and Government support for schemes in underpinning agriculture's contribution to the economy.
He said it is vital that all existing supports are maintained to achieve the growth and export targets for agriculture and the food industry.
