Farm income increased by 22.7 per cent in 2005, according to revised Central Statistics Office figures. The CSO had provisionally estimated a 19.8 per cent increase last February.
It said yesterday that farm income increased from €2,234 million in 2004 to €2,742 million last year in what the IFA called "an unfavourable year".
The figures, now based on actual out-turn data, showed that while farmers received €1,468 million in subsidies in 2004, this increased last year to €2,107 million, a 43 per cent increase.
IFA president Pádraig Walshe said the 22.7 per cent figure was a reflection of the transition from the old direct payment system to the new single farm payment method.
"Nevertheless," he said, "the improved cashflow situation for farmers last year was welcome. The increase in the 2005 figure is mainly as a result of a carry forward of over €600 million of 2004 Cap direct payments into 2005.
"Leaving this exceptional factor aside, the underlying economic trends facing farmers were unfavourable in 2005, as output prices overall increased by only 0.5 per cent while input prices increased by 4.3 per cent, due mainly to higher fertiliser and energy prices. It is a matter of concern that the volume of total output was down by 3.6 per cent."
Mr Walshe said with the decoupled single payment in place, the key determinant of farm production and income this year would be the balance between product prices and production costs.
"Farming needs to be profitable independently of the single payment if the level of farm production is to be sustained."
The CSO valued the increase in cattle output at €70 million, the decline in milk output at €82 million and the drop in cereals output, of just over 30 per cent, at €56 million.
The cost of feed fell by 3.1 per cent, or €28 million, while the cost of fertilisers increased by 1.5 per cent, or €5 million.
One of the largest increases faced by farmers during the year was energy and lubricant costs, which rose by 17.6 per cent, or €42 million.