Mounting red tape and regulations on farms poses a €3bn threat to the Irish rural economy annually and risks almost 30,000 jobs.

An Irish Farmers Journal-commissioned KPMG report lays bare the economic impact of changing agricultural policies.

Forced reductions in farm output are piling pressure on the processing of milk and meat and threatening major job losses in both primary agriculture and the wider industry.

KPMG analysts warn that almost 30,000 jobs are on the line.

Sweeping CAP changes, the risk of losing the nitrates derogation and delivering a 25% reduction in emissions are examined in the report.

Professor Michael Wallace of UCD described the findings as “sobering”, saying that a reduction in agricultural output has knock-on effects on rural businesses.

Measures that lower agricultural productivity threaten farm viability unless suitable compensation or diversification options are available, he said.

Speaking at the report’s launch, Minister for Agriculture Charlie McConalogue said it is “absolutely crucial and it is a national imperative” that a further derogation is secured.

The publication of the report comes as data from the Teagasc National Farm Survey indicates that farm incomes fell by 57% to an average of €19,925 in 2023.