Figures produced by Teagasc predicting a drop in farm income of 30-70 per cent by 2007 unless farmers respond to the new agricultural policy and economic climate have been rejected by the leader of the Irish Farmers' Association, Mr Tom Parlon.
Mr Parlon said the predictions were pessimistic and did not accurately reflect the reality of the situation.
He said there was a major challenge to Irish food processors to achieve better prices for the raw materials produced by farmers for the industry.