The Teagasc National Farm Survey has confirmed the collapse in farm incomes in 2023, with incomes down 57% on average to €19,925.

The 2023 report states that lower farmgate prices, depressed levels of production and high costs were the primary factors behind the income cut.

Teagasc reported that the record-high dairy production costs of 2022 stayed in 2023, while milk prices fell 28% and volumes were back by 4%.

These factors combined to wipe over €105,000 off dairy farm incomes, taking them to just below €49,500 – a decline of more than two-thirds on 2022.

Tillage

A lower yielding grain harvest and a 30-35% drop in cereal prices pushed tillage incomes down 71% to €21,399. Average income in the sector stood above €73,000 in 2022.

Teagasc noted that some farm input costs, including fertiliser, fell last year, but the price reductions generally came too late in the growing season to abate the decline in tillage sector incomes.

Beef and sheep

Suckler farm incomes saw cattle prices rise by 6%, which was not enough to keep pace with an 11% rise in input costs amid challenging weather conditions and more purchased feed.

This meant that the average suckler income was down 15% to €7,400 on 2022’s levels, even with a 10% boost to the average suckler farmer’s support payments.

Beef finishers’ average income dropped by almost one-fifth to €14,700 in 2023.

The output price received by finishers fell by 5%, mainly driven by lower slaughter weights, with a pull on beef prices in the later half of the year.

The average sheep farm income decreased by 22% to €12,600 as a result of lower lamb prices and lower output when input costs remained unchanged.

As with suckler farms, the average value of support payments was up 10%.

See farmersjournal.ie for more coverage of the report and this week's Irish Farmers Journal.