Strong rebound in 2025 farm incomes driven by beef and weather
The gains were largely powered by exceptional beef prices and good weather affecting dairy, cattle, and mixed farms.
Average Irish farm income rose 33% to almost €49,400 in 2025, according to a new report by Teagasc economists.
The gains were largely powered by exceptional beef prices and good weather affecting dairy, cattle, and mixed farms, according to the document, which provides the latest estimates of average incomes for various farm types in 2025, and looks ahead to future prospects, forecasting farm incomes in 2026.
The Irish dairy sector had a record 2025 performance — but a sharp fall is forecast ahead. In 2025, milk production was up 4%-5%, with milk prices also 3% higher, bringing the average dairy farm income to €137,000 — a 26% increase.
The typical dairy net margin should be about 21cpl in 2025, an increase of about 4cpl on the 2024 average.
However, the 2026 outlook is negative, with milk prices forecast to fall more than 20%, and farm incomes expected to drop 42% to €80,000.
Meanwhile, the beef boom has transformed drystock incomes, with cattle rearing incomes up 118% to €30,000, and finishing farms up 26% to €23,000.
Looking ahead, the outlook for 2026 remains historically strong, despite small price and cost adjustments.
The sheep sector has also seen its second year of record prices, driving sector incomes up 33%, to €36,500, in 2025.
Prices in 2025 were 6% higher than 2024’s record levels, driven largely by a dramatic fall in slaughter numbers. However, some sheep farms also have a secondary cattle enterprise. Therefore, the strong growth in margins from beef production also contributed to the growth in average sheep farmer incomes this year.
Income is forecast to rise a further 5% to €38,500 in 2026.
The tillage sector stabilised after a difficult 2024, with sector incomes up 14% to €47,200.
This year's yields were improved due to good weather, but prices fell due to a large global harvest.
Looking ahead, a 1% decline is expected in 2026.
Commenting, IFA president Francie Gorman said: “The increase in farm incomes over the past 12 months means that for the first time in decades, most farmers are receiving something close to a fair return for their efforts. That is a positive development and will help lift overall sentiment in the sector.
"However, it’s also important to note that the average figure hides the reality on the ground for some, particularly tillage farmers, who endured a tough year in 2025.
“Projections for farm incomes for 2026 are concerning, particularly for dairy farm incomes, with a 42% reduction anticipated. It’s imperative that the Government does all it can to minimise the cost of doing business for farmers as we face into the new year.
“Key among these is putting a halt to the proposed CBAM tax on fertiliser, which Teagasc estimated today will lead to a 10% increase in fertiliser costs in 2026. This is a classic example of regulation driving up the cost of production and needs to be addressed as a matter of urgency by the minister at EU level,” Mr Gorman added.
