IFA Accounts Reflect Significant Impact of COVID-19 on Activities
The Irish Farmers’ Association recorded an operational surplus of €1,790,140 to the year end March 31st, 2021.
The Annual Accounts were approved at a National Council meeting yesterday.
The surplus is broken down as €1,544,721 from normal IFA activities, and €245,419 of an after-tax profit from IFA Telecom.
The accounts can be viewed here.
IFA National Treasurer Martin Stapleton said the significant impact of COVID-19 on the period covered cannot be overstated.
“This period coincides directly with the start of the pandemic (just two weeks after Taoiseach Leo Varadkar’s speech in Washington),” he said.
In compliance with COVID-19 restrictions, a shutdown of in-person meetings, events and shows (Ploughing Championships, Tullamore Show, Virginia Show, our pre-Budget lobbying, meetings of National Council, County Executive meetings) contributed to lower costs and expenses, while our income held up reasonably well despite initial fears at the start of the first lockdown.
The final element that determined the overall result was the movement in value of shares at the year end.
While no transactions took place, accounting requirements mean we have to show any increase or decrease in value of our investments at year end. Due to COVID-19, values were down at March 2020 and had recovered by March 2021, resulting in a contribution of €1,353,274 towards our overall result.
|Summary of Consolidated Financial Statements||2021||2020|
|IFA (standard activities)||1,544,721||(1,272,967)|
|IFA Telecom (net of tax)||245,419||435,575|
|Consolidated operating surplus||1,790,140||(837,392)|
|Movement in Share Valuation||1,353,274||(1,666,829)|
|(net of deferred taxes/taxes)|
|Surplus for the Year||3,139,368||(3,553,696)|
While the overall reserves of IFA reduced in recent years, the balance sheet has strengthened in 2021 with consolidated assets of €14.5m (2020: €11.3m) on March 31st, 2021.
In conclusion, Martin Stapleton said that while the turnaround in the finances was welcome, the level of the surplus is largely due to exceptional circumstances arising from COVID-19.