Ev to sort Mon/Tuesday Average farm income rose 49% last year - Teagasc survey

Cattle and dairy farming are main drivers of the continued recovery while costs only changed only marginally and, in some instances, fell

Teagasc research officer Trevor Donnellan; academic collaborator Brian Moran; Director Frank O’Mara; principal research officer Kevin Hanrahan; research officer Emma Dillon, and technologist John Lennon at the launch of its new report confirming further growth in farm incomes across all systems for 2025. Picture: John Ohle

The average farm income increased by 49% during the course of 2025, to just over €53,800, largely driven by cattle farming as well as dairy production, the latest Teagasc national farm survey shows.

Farm incomes, according to the survey, have been steadily recovering since 2023 when the average income dropped to just €19,281 — down from €46,313 in 2022. It rose again to €36,234 in 2024 and jumped again to €53,824 last year.

Teagasc said that income growth was driven by continued improvement in farm output prices, with particularly strong income gains recorded on cattle rearing, beef finishing, and dairy farming.

“As a result, over half of the farms in the survey in 2025 were considered economically viable, a sharp improvement on the previous year. While incomes improved in all farm systems, substantial differences remain between the incomes achieved in dairy farming relative to other farm systems,” the agency said.

According to the data, dairy farm incomes increased by 41% in 2025 to €153,319 compared to 2024. The increase was primarily due to strong milk prices, increased milk output, and higher revenues from the sale of calves and cull cows which contributed to an increase in gross output on the average dairy farm of 13%.

“In aggregate direct and overhead costs changed only marginally, reflecting both increases and decreases in a range of cost items,” Teagasc said. 

Dairy profitability sensitive to milk price

“The recent strength of dairy incomes underlines how sensitive dairy farm profitability remains to movements in milk price. 

"While the average income on dairy farms considerably exceeds that of the other farm systems, the intensive nature and larger scale of dairy farms mean that they require a higher level of labour input than on any of the other farm systems.”

The largest year-on-year increase in income was in the ‘cattle other farm’ category — which includes beef finishing and store cattle enterprises —  with the average income rising by 81% to €32,798. 

Much stronger prices for finished and store animals drove a 31% increase in gross output, which more than offset a 12% rise in direct costs associated with additional feed and fertiliser expenditure.

Cattle rearing farms' income up 74% 

Income on cattle rearing farms increased by 74% to €24,061. Teagasc said the higher young cattle prices supported a 22% increase in gross output, while costs changed only marginally.

Tillage farm income rose by 33% in the year bringing the average income to €54,916.

“This builds on the partial recovery in income seen in 2024. Due to a substantial global grain harvest, grain prices were lower in 2025, but this was offset by a significant improvement in Irish cereal yields,” Teagasc said.

“This led to a 7% increase in gross output in 2025.” Costs in this segment rose only slightly which allowed for the improvement in output value to feed through to additional farm income, the survey found. 

Average sheep farm incomes recorded just a 7% increase in the year to €29,344 as gross output remained “broadly unchanged” during the year reflecting an increase in lamb prices.  

“However, a 9% reduction in direct costs and stable overhead costs supported a further, if smaller, improvement in income following the substantial gains recorded in 2024,” the agency added.