Best suckler farms to net more per acre than average dairy farm

Teagasc’s economic outlook for 2026 anticipates that the most profitable third of suckler farmers will net a higher return for every acre they farm than the average dairy farmer will.

The report expects that the top one-third of suckler farmers by economic performance will see a net margin of €1,493/ha (€597/ac), while the average dairy farmer will see net returns for their efforts amount to a marginally lower €1,450/ha (€580/ac).

These figures are forecast on the assumptions that weanling prices could fall 5% on their 2025 average, beef prices will average €7.95/kg over the year for R3 steers and that the base yearly milk price will settle at 37c/l including VAT (35.4c/l excluding VAT).

Sheep farmer incomes are to be buoyed by lamb prices “over and above current high levels” to reach €38,500 as net margins in the sector jump to €594/ha (€234/ha) – a significant year-on-year rise but still behind the unprecedented levels that are to be witnessed by cattle farmers.

Fall

Combined with relatively stable input costs, these prices are set to see the average suckler income fall back from record 2025 levels to €28,500, the average dairy income witness a 42% slump to €80,000 and cattle finisher incomes rising 13% to €26,000.

The report states that the strong floor expected to remain in the beef market will see dairy farmers’ cull cows and calf sales acting as a “buffer” against the impact of depressed milk prices on net margins.

The forecast that feed and fuel prices will lower for all sectors does not look set to significantly reduce farmers’ overall input cost bills, the report stated, as fertiliser costs are anticipated to rise 10% for both grassland and tillage due to the introduction of the CBAM tax on fertilisers imported into the EU.

The forecast for tillage farmers is mixed depending on crop type as some 30% of specialist tillage farmers are anticipated to see a negative return from the market next year.

High grain supplies both in the EU and internationally, combined with the reporters’ assumption of a 2026 return to average yields is forecast to result in a slight decrease in average incomes to €46,900 next year.