Just one in every four sheep and cattle farms were economically viable in 2022, according to the latest Teagasc sustainability report.

The report found that 27% of cattle farms were economically viable with an output of €1,740/ha and profit of €769/ha.

Across all cattle farms, the average income per labour unit was €17,154 in 2022. Market-based output, selling stock, accounted for 70% of gross output across all cattle farms, with 30% coming from direct payments.

A farm is defined as economically viable if family labour is paid at greater than or equal to the minimum wage, which was €10.50/hour in 2022.

There must also be sufficient income generated by the farm to provide an additional 5% return on non-land-based assets.

Teagasc found that 26% of sheep farms were economically viable last year with a gross output of €1,475/ha and profit of €625/ha.

For the average sheep farm, approximately 65% of output was generated from the market, with the remaining 36% derived from direct payments.

Just 26% of sheep farms were economically viable last year. \ Donal O'Leary

The average income per labour unit on sheep farms was €14,890.

The reverse was seen for dairy farms with 93% deemed by Teagasc to be economically viable in 2022.

The average dairy farm output was €6,005/ha and the average profit was €3,509/ha. The average dairy farm income per labour unit was €109,003 last year.

In 2022, 79% of tillage farms were classified as economically viable.

On average, tillage farms generated 82% of their output value from the market last year. The average tillage farm income per unpaid labour unit was €97,910.