Higher food prices and additional support payments increase family farm incomes by 87%
HIGHER FOOD PRICES, an easing in input costs and additional support payments have contributed to increasing family farm incomes in Ireland by 87%.
Economists at Teagasc – the Agriculture and Food Development Authority – today published a new report on family farm income last year and it shows a 'substantial recovery' following an 'extremely difficult' 2023.
It said a combination of higher food prices, some easing in input costs and additional support payments under the new CAP (Common Agricultural Policy) has driven this increase which has seen the average family farm income rise by 87% to just under €36,000.
CAP payments in Ireland are focused on improving the environment and helping to prevent climate change.
Teagasc found there were 'particularly strong improvements' for dairy, tillage and sheep farms but added that this should be viewed in the context of 'particularly low-income figures in 2023'.
Meanwhile, Teagasc found that 42% of farms were categorised as economically viable last year, which was one of the highest rates it has on record.
And while Teagasc notes that higher food prices aided farm incomes last year, this trend looks set to continue this year.
Ireland recorded the sharpest rate of increase in agricultural produce prices in the EU in the first quarter of this year,
the bloc's statistical agency Eurostat said last week.
Irish agricultural prices were up an eye-watering 19.3% in the first quarter of 2025 when compared with the same period of 2024. The average increase across the EU was just 2.6%.
Dairy farms
Dairy farm incomes rose by 113% last year when compared to 2023, to an average of €108,200.
While the average dairy farm income was €157,591 in 2022, this dropped sharply to €50,677 in 2023.
Teagasc said the recovery seen last year was driven by 'much improved' milk prices and favourable grazing conditions from mid-year onwards, which boosted production later in the year.
Input costs, such as feed and fertiliser, also eased when compared to 2023, as did overhead costs.
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However, Teagasc remarked that the 'strength of the income recovery is a reminder that Irish dairy farm incomes are highly sensitive to milk price movements which dairy farmers have no control'.
Cattle farms
While the average dairy farm had an income of over €108,000 last year, it's a different story for cattle farms.
For cattle rearing farms, which typically focus on suckler beef production, there was a 'strong rebound' last year following an 'extremely poor outcome in 2023'.
The average income increased by 93% to €13,500, driven by higher cattle prices and lower production costs.
Cattle Other farms, including beef finishing and store cattle enterprises, saw their average income increase by 32% last year, to €18,101.
This increase was driven by firmer prices for finished animals and lower production costs.
Teagasc noted that support payments also remained an important component of income on these farms and that the income increase for this category of farm is lowest relative to other farm types.
Sheep Farms
The average income on Sheep farms increased by 115% last year to just under €27,796.
Once more, an increase in lamb prices as well as a fall in input costs contributed to this increase, in addition to support payments.
Tillage Farms
Following a year of 'extremely low income' in 2023 where the average farm income was €19,204, tillage farms saw incomes rise last year by 101% to €38,685.
Teagasc said this was due to a 'combination of factors', such as a switch towards spring crops after particularly difficult winter planting conditions.
These spring crops fared better than winter crops and overall yields were slightly better than in 2023.
Favourable weather during the summer period also aided grain quality, and grain prices were up marginally while input costs reduced.
Lower fertiliser prices were also of particular benefit, although Teagasc said land rental costs remained high.
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