The Irish Farmers' Association holds its a.g.m. in Limerick tomorrow against the backdrop of the greatest shake-up in agriculture since Ireland joined the EU. The changes to the industry will cost the organisation at least €1 million annually in lost revenue.
The 80,000-strong organisation has a very strong balance sheet but because it receives substantial income from levies on produce from marts, meat factories and co-operatives, the expected fall in revenue from lower farm output will impact sharply from now on.
The decision by Ireland to opt for "decoupling", i.e., breaking the link between direct payments to farmers and what they produce, will lead to a dramatic decline in production from next year onwards and will accelerate a trend which has already started.
Reports compiled by the Food and Agriculture Policy Research Unit of Teagasc predicted a loss of 150,000 beef cows by the year 2009. Another report by the Irish Meat Association said lamb production could drop by 20 per cent as a result of the EU's reform of the Common Agricultural Policy.
The Teagasc analysis predicted that 10 per cent of the State's 100,000 beef farmers will destock their farms and dairy farm numbers will drop from the current level of 26,500 to 18,000 by the year 2012.
These changes will have a major impact on the IFA, which has been monitoring the decline in farm numbers over the last three decades and the strong drift to part-time farming.
With an annual income of more than €8 million and a special reserve fund which contains over €12 million, the IFA has been redoubling its efforts to get new members from the 40,000 farmers who do not belong to the organisation.
The rival farm organisation, the Irish Creamery Milk Suppliers' Association, claims a membership of 48,000 and an estimated 5,000 farmers belong to the Irish Cattle and Sheepfarmers' Association, which represents beef and sheep farmers. A number of farmers hold membership of two organisations. The IFA claims that its membership has grown by 3 per cent annually over the last 10 years.
Membership fees account for 45 per cent of income while levies generate 40 per cent. The decline in the number of farmers and production levels has caused the organisation to focus on other ways to generate revenue.
It has a number of cash-raising initiatives including a mobile phone deal, a landline phone system for members, a Visa card scheme and discount deals with a number of hotel groups.
The latest idea is to offer non-farming people membership of "IFA Countryside", which is aimed at people who have an affinity with the countryside, or those who use it for sporting activities.
For an annual €65 payment, those who join will get discount rates which are available to full members, including automatic personal accident cover from the FBD insurance company for those engaged in field sports.
This package is expected to be ratified at the two-day a.g.m. in Limerick without opposition because this so-called "pavilion membership" of the IFA will not entitle the holder to voting rights within the organisation.
Members will also be discussing the difficulties getting part-time farmers involved in the running of the organisation which requires huge voluntary input from people who are hard pressed for time.
With 940 branches to run, the organisation also needs the input of nearly 1,000 people to run its 22 national committees and to represent the organisation on other voluntary bodies.