The Local Impact of Cattle Farming

A motivation provided for the provision of substantial agricultural subsidies to low income farmers is that it is an effective mechanisms to transfer resources into poorer rural areas. In this study we look at the local impact of a low income farming sector, cattle farming in a typical cattle farming county in the West of Ireland, County Clare. The input-output analysis reveals that cattle farmers in the county purchase and sell approximately 80 per cent of their livestock within the county and rely upon Clare suppliers for almost 90 per cent of their inputs and overheads. We have examined the impact in particular of a reduction in the size of the herd as a direct consequence of requirements to meet national level greenhouse gas emissions targets. The overall impact of such policies is capable of reducing household income within Clare by €9.5 million.