Income from Irish farms increased by 24.3 per cent last year, nearly 4.5 per cent more than the Central Statistics Office (CSO) had predicted in December last year.
Figures published by the CSO yesterday revised upwards the 19.8 per cent Agriculture Operating Surplus by 4.5 per cent, in preliminary figures issued in December.
In a note, the CSO said the structure of agricultural subsidies had changed substantially in 2005, following the introduction of the Single Payment Scheme which altered the methods of calculation.
The figures showed that net subsidies to farmers last year reached €2.11 billion from €1.4 billion the previous year.
IFA president Pádraig Walshe said the figures were a reflection of the transition from the old direct-payment system to the new single-payment method.
"Nevertheless, the improved cashflow situation for farmers last year was welcome. The increase in the 2005 figure is mostly as a result of a carry forward of over €600 million of 2004 Cap direct payments into 2005," he said.
"Leaving this exceptional factor aside, national farm income last year would be up by about 4.5 per cent in money terms.
"It is a matter of concern that the volume of total output was down by 3.5 per cent," he added.
He said one of the few positive factors in 2005 was that cattle prices overall were up by 4.2 per cent on the previous year, with strong prices in the first half of the year and again towards the year's end.
"With the decoupled single payment fully in place, the key determinant of farm production in 2006 will be the balance between product prices and production costs.
"Unless farming is profitable independently of the single payment, the downward trend in farm production will continue," he said.
The revised CSO figures put farm output at just under €5 billion and farm inputs or costs at €3.4 billion, with the subsidies at €2.11 billion - a 43.3 per cent increase over 2004.