Employment data published this week by the Central Statistics Office (CSO) showed that the total number of people in employment in Ireland continues to expand, with more that 2.75m workers in the country at the end of the second quarter of this year.

However, digging into the data, we can see that employment in agriculture and related trades has been going backwards recently and is now at the lowest level since the pandemic (see Figure 1).

In the last three years, the number of people with jobs in the Irish economy increased by more than 250,000, while the number working in agriculture actually showed a slight decrease.

There was a significant increase towards the middle of 2023, when the number working in agriculture approached 100,000, but it has been on a fairly rapid decline in recent quarters, dropping to 85,100 by the middle of this year, slightly below the level in the third quarter of 2021.

Raw data

While the raw data gives no reason behind the stagnation in employment in the sector, both farm organisations and industry groups have highlighted difficulties in attracting young people to a career in agriculture.

The issues facing the industry are well known. Farm work is seen as hard, with long hours and less social contact than would be available in other professions.

Farming as a profession also has very substantial barriers to entry, as land is expensive to either buy or lease, with the yields achievable often meaning it makes little economic sense to undertake large capital expenditure for potentially very low or negative returns.

Inheritance

Even for those who are in a position where they could inherit a farm, the prospect may not be that attractive. Latest data from Teagasc on farm incomes shows that the average family farm income in 2023 was just under €20,000.

To put that number in context, the Government is reportedly considering increasing the national minimum wage to €13.50 an hour, which works out at almost €27,500 per year for a 39-hour working week.

For farmers who want to retire and leave their land to the next generation, this lack of earnings potential is a major problem.

Earlier this year, an ifac farm survey showed that 48% of farmers do not have a successor in place, while 94% of those surveyed described succession as a “major issue”.

While there is more than money involved in a decision to enter the industry, the paltry incomes on offer do go a long way towards discouraging new entrants.

In Ireland’s economy right now, jobs are plentiful and if the agriculture industry wants to increase participation, it will have to do a much better job of competing for the hearts, minds and wallets of young people.