The significance of the new and evolving Sustainable Agriculture Programme (SAP) measures have been highlighted by Ian Stevenson, chief executive with the Dairy Council for Northern Ireland.
SAP, formerly known as the Farm Support and Development Programme, has been renamed and redesigned to better support the sustainable transition within NI’s agri-food sector.
“Sometimes it’s easy to overlook the significance of support payments for the dairy sector. Linked to this train of thought is the assumption that milk producers can generate a sustainable income on the back of a decent milk price alone,” he explained.
“In reality, this simply isn’t case. And the figures support this.”
For the eight-year financial period from 2015/16 through to 2022/23, dairy farmers in Northern Ireland recorded an average farm business income (FBI) of £65,495.
FBI represents the return for all unpaid labour (most often the farming family) and to their capital invested in the farm business, which includes land and buildings.
“All told, this is not a large sum of money,” Stevenson said.
“Dairy farming incomes are notoriously variable in nature. They are dependent on numerous factors, including the weather, fluctuation in input costs and the state of world commodity markets.
Stevenson said that the average value of the direct payments drawn down by dairy businesses in 2022-23 was £25,731.
“Even in this exceptional year, when the average dairy farm business income figure for Northern Ireland amounted to £122,861, this meant at £25,731, direct support payments amounted to 21 per cent of the total,” Stevenson explained.
“Contrast this with 2023/24, the forecast FBI is down by 70% to £36,671, demonstrating the critical role that direct payments will have played in supporting businesses through such a challenging year.
“So, yes, farm support measures have been key in delivering financial sustainability for the dairy sector up to this point. And this principle will hold in equal measure as milk producers look to the future,” Stevenson added.
According to Ian Stevenson, fundamental change is already happening in the way that farm support is structured in Northern Ireland, specifically under the aegis of SAP.
“From a Dairy Council perspective, we know through our sustainable dairy programmes that farmers readily embrace new technology and approaches to drive improvements in their businesses with change often seen more as an opportunity than a threat,” Stevenson added.
“The full range of schemes that make-up the new SAP is a good news story for local agriculture given that milk producers and other farmers will continue to be supported in a journey to improve the efficiency and environmental sustainability of their businesses.
“It’s a process that represents a win-win scenario for everyone involved,” Stevenson concluded.
