Teagasc confirms rebounds in farm incomes for all sectors last year
The proportion of farms categorised as economically viable was recorded at 42% in 2024, one of the highest results on record.
Family farm income (FFI) made substantial recoveries across all sectors in 2024, according to a recent report from Teagasc.
The average FFI rose by 87% to just under €36,000 in 2024. Income growth was driven by a combination of improved farm output prices, some easing in input costs and additional support payments under the new CAP (Common Agricultural Policy).
The proportion of farms categorised as economically viable was recorded at 42% in 2024, one of the highest results on record.
Particularly strong FFI improvements were recorded for dairy, tillage and sheep farms on average. These figures must be interpreted in the context of particularly low income figures in 2023.
Dairy farm incomes more than doubled in 2024, rising by 113% to an average of €108,200 despite a poor start to the production season.
This income recovery serves as a reminder that the Irish dairy income is highly reliant and sensitive to milk price movements in successive years, which farmers have no control over.
The recovery of dairy incomes was driven by improved milk prices and favourable grazing conditions from the middle of the year onwards, which helped boost production later in the year.
Input costs, such as feed and fertiliser, eased slightly relative to 2023, as well as overhead costs.
Cattle farms such as suckler beef production rebounded strongly in 2024, with an average income increase of 93% to €13,500. This is attributed to higher cattle prices and lower production costs.
Core support payment remains the Basic Income Support for Sustainability (BISS), in addition to the Suckler Carbon Efficiency Programme (SCEP), the Organic Farming Scheme (OFS), and the National Beef Welfare Scheme (NBWS) while ACRES also helped to underpin the income improvement.
Other beef enterprises, such as finishing units and store cattle farms, experienced an increase in income of 32% in 2024, raising the average income to over €18,000.
This increase is attributed to firmer prices for finishing animals and lower production costs. Support payments also remained an important component of income on these farms.
The average income for sheep farms more than doubled, increasing by 115% to just under €28,000 in 2024.
The 18% increase in lamb prices was one of the drivers of this increase, as well as a fall in input costs, benefiting sheep farmers in comparison to 2023.
Continued support through the Sheep Improvement Scheme, Organic Scheme and ACRES contributed to the overall income improvement in this system.
The rise in income observed in 2024 was also associated with the timing of the receipt of some farm payments.
Tillage farms saw the average income rising by 101% to €38,700 in 2024, following a year of extremely low income in 2023. This increase was facilitated by a combination of factors.
Following particular winter planting conditions, there was a switch to spring crops. These spring crops fared much better than winter crops, and overall yields were slightly better than in 2023. Favourable weather during the summer period also aided grain quality.
Grain prices also rose marginally while input costs remained moderate. Lower fertiliser prices particularly benefited the sector; however, land rental costs remained high. Tillage with secondary cattle or sheep enterprise will have benefited from improved returns in the sectors in 2024.
The widespread nature of the income recovery highlights how improved output prices, favourable weather, support payments and some easing of costs can support farm viability.
