Farm incomes are estimated to be up 33% on average this year to €49,000, according to Teagasc.
A new report from Teagasc economists shows farm incomes have improved in all sectors analysed bar pigs, with the increase largely driven by the rise in beef-related income on both dairy and drystock farms.
“Favourable weather and generally positive market price developments provided the basis for a good year in 2025 across much of Irish agriculture,” Teagasc said.
“Good sunshine levels and higher than normal temperatures provided an excellent start to the grazing season. Favourable grass growth conditions persisted throughout much of the rest of the year.
“However, there were drought conditions in some southeastern regions at points in the summer, while heavy rain impacted on grazing generally towards the end of the season."
The report’s income forecast for 2026 was much less favourable, particularly for the dairy sector.
Beef
Cattle-rearing farms saw the largest percentage increase of any sector. However, dairy incomes remain significantly higher.
The average income on a cattle-rearing farm is predicted to increase by 118% on the modest 2024 level to approximately €30,000 in 2025.
Higher cattle prices are expected to drive a large improvement in margins this year.
Teagasc economists outlined that prices for weanlings, store and finished cattle were all up dramatically on 2024 price levels.
There were also some cost increases, with higher fertiliser prices as well as higher fertiliser usage occurring in 2025.
Meanwhile, for other cattle farms – a category comprised of mainly beef finishers – incomes are estimated to rise by 26% to an average of €23,000.
Finished cattle prices have increased considerably, with the annual average price in 2025 up 40% on the 2024 level.
However, prices paid for young cattle to stock these farms increased to a much greater extent than in 2024, the report stated.
Dairy
Dairy farm incomes are estimated to be up 26% to €137,000 this year compared with 2024. This is in spite of the recent sharp drop in milk price.
Teagasc economists noted that dairy farms have the highest labour requirement of any farm type, with the average farm requiring 1.44 units of family labour.
The report outlined that an excellent start to the grazing season and favourable peak season grass growth meant milk production increased about 4% to 5% relative to the 2024 level.
“Higher milk prices were a feature of much of 2025, but prices fell considerably towards year-end. For 2025 as a whole, milk prices were about 3% higher than in 2024.
"The sharp increase in beef prices in 2025 meant that dairy farmers benefitted from very high prices for cull cows and surplus calves,” the report said.
It outlined that the typical dairy net margin should be about 21c/l in 2025, an increase of about 4c/l on the 2024 average.
Sheep
Incomes on sheep enterprises saw the second-highest estimated increase in percentage terms, although these farms continue to have the lowest income of any sector, apart from those classified as 'cattle other'.
Incomes on sheep farms were up by one third to €36,500 when compared with 2024.
It was noted that some sheep farms also have a secondary cattle enterprise and, therefore, the strong growth in margins from beef production also contributed to the growth in average sheep farmer incomes this year.
The report stated that this year, Irish sheep and lamb prices increased on the record price level observed in 2024, with prices up about 6%.
“Higher prices reflect the reduction in sheep supply across the EU. In Ireland, there has been a dramatic reduction in the volume of sheep slaughtered in 2025.
“It is not clear what is driving this reduction given the relative stability in ewe numbers nationally. With production costs showing little change on the previous year, margins and income for sheep farms are estimated to have increased,” it said.
Tillage
The average income on a tillage farm in 2025 is estimated to be approximately €47,200, an increase of 14% relative to 2024.
Teagasc economists said favourable weather meant that tillage farms yielded higher volumes in 2025. However, on the flip side, a large harvest internationally led to lower international and Irish cereal prices.
However, the report noted that the average tillage farm income in 2024 was somewhat below the five-year average level.
“Hence, the average tillage income in 2025 is broadly in line with the five-year average.
“Some of the increase in income on specialist tillage farms in 2025 can be attributed to the increased margins on the subsidiary beef farming enterprise on these farms, along with higher coupled tillage direct payments,” it added.
The report broke down the income changes on more specialised tillage farms. A detailed analysis was carried out this year for the first time focusing on specialist cereal-, oilseed- and protein- (COP) producing farms.
The analysis found that, by their nature, these tillage farms have considerably less output from subsidiary livestock production and their incomes increase in line with tillage farms overall.
It was found that the rise in income was due to gains from more intensive winter cereal production, coupled with higher coupled payments from tillage related direct payments (such as the Straw Incorporation Measure, Protein Aid Scheme and Tillage Support Scheme).
Pigs
Pig prices in 2025 are estimated to be on average 6% lower than in 2024. Due to a 3% drop in feed prices in 2025, production costs were marginally lower.
Teagasc economists said pig production was less profitable in 2025, although pig production increased by 5% in volume terms. Pig prices, measured on a monthly basis, declined as the year progressed.
There was a reduction in margins on pig farms, with an estimated margin over feed of 79c/kg for 2025.
Forestry
Due to storm Éowyn, there were huge financial, logistical and supply chain challenges within the forestry sector in 2025.
The impact required replanning of forest operations and supply chains to facilitate the harvest, recovery and marketing of windblown timber.
Felling licence processes were prioritised to support harvesting of affected timber.
All farm income estimates for 2025 and forecasts for 2026 are inclusive of support payments.
Read more
Farm incomes forecast to drop almost 20% in 2026
Farm incomes are estimated to be up 33% on average this year to €49,000, according to Teagasc.
A new report from Teagasc economists shows farm incomes have improved in all sectors analysed bar pigs, with the increase largely driven by the rise in beef-related income on both dairy and drystock farms.
“Favourable weather and generally positive market price developments provided the basis for a good year in 2025 across much of Irish agriculture,” Teagasc said.
“Good sunshine levels and higher than normal temperatures provided an excellent start to the grazing season. Favourable grass growth conditions persisted throughout much of the rest of the year.
“However, there were drought conditions in some southeastern regions at points in the summer, while heavy rain impacted on grazing generally towards the end of the season."
The report’s income forecast for 2026 was much less favourable, particularly for the dairy sector.
Beef
Cattle-rearing farms saw the largest percentage increase of any sector. However, dairy incomes remain significantly higher.
The average income on a cattle-rearing farm is predicted to increase by 118% on the modest 2024 level to approximately €30,000 in 2025.
Higher cattle prices are expected to drive a large improvement in margins this year.
Teagasc economists outlined that prices for weanlings, store and finished cattle were all up dramatically on 2024 price levels.
There were also some cost increases, with higher fertiliser prices as well as higher fertiliser usage occurring in 2025.
Meanwhile, for other cattle farms – a category comprised of mainly beef finishers – incomes are estimated to rise by 26% to an average of €23,000.
Finished cattle prices have increased considerably, with the annual average price in 2025 up 40% on the 2024 level.
However, prices paid for young cattle to stock these farms increased to a much greater extent than in 2024, the report stated.
Dairy
Dairy farm incomes are estimated to be up 26% to €137,000 this year compared with 2024. This is in spite of the recent sharp drop in milk price.
Teagasc economists noted that dairy farms have the highest labour requirement of any farm type, with the average farm requiring 1.44 units of family labour.
The report outlined that an excellent start to the grazing season and favourable peak season grass growth meant milk production increased about 4% to 5% relative to the 2024 level.
“Higher milk prices were a feature of much of 2025, but prices fell considerably towards year-end. For 2025 as a whole, milk prices were about 3% higher than in 2024.
"The sharp increase in beef prices in 2025 meant that dairy farmers benefitted from very high prices for cull cows and surplus calves,” the report said.
It outlined that the typical dairy net margin should be about 21c/l in 2025, an increase of about 4c/l on the 2024 average.
Sheep
Incomes on sheep enterprises saw the second-highest estimated increase in percentage terms, although these farms continue to have the lowest income of any sector, apart from those classified as 'cattle other'.
Incomes on sheep farms were up by one third to €36,500 when compared with 2024.
It was noted that some sheep farms also have a secondary cattle enterprise and, therefore, the strong growth in margins from beef production also contributed to the growth in average sheep farmer incomes this year.
The report stated that this year, Irish sheep and lamb prices increased on the record price level observed in 2024, with prices up about 6%.
“Higher prices reflect the reduction in sheep supply across the EU. In Ireland, there has been a dramatic reduction in the volume of sheep slaughtered in 2025.
“It is not clear what is driving this reduction given the relative stability in ewe numbers nationally. With production costs showing little change on the previous year, margins and income for sheep farms are estimated to have increased,” it said.
Tillage
The average income on a tillage farm in 2025 is estimated to be approximately €47,200, an increase of 14% relative to 2024.
Teagasc economists said favourable weather meant that tillage farms yielded higher volumes in 2025. However, on the flip side, a large harvest internationally led to lower international and Irish cereal prices.
However, the report noted that the average tillage farm income in 2024 was somewhat below the five-year average level.
“Hence, the average tillage income in 2025 is broadly in line with the five-year average.
“Some of the increase in income on specialist tillage farms in 2025 can be attributed to the increased margins on the subsidiary beef farming enterprise on these farms, along with higher coupled tillage direct payments,” it added.
The report broke down the income changes on more specialised tillage farms. A detailed analysis was carried out this year for the first time focusing on specialist cereal-, oilseed- and protein- (COP) producing farms.
The analysis found that, by their nature, these tillage farms have considerably less output from subsidiary livestock production and their incomes increase in line with tillage farms overall.
It was found that the rise in income was due to gains from more intensive winter cereal production, coupled with higher coupled payments from tillage related direct payments (such as the Straw Incorporation Measure, Protein Aid Scheme and Tillage Support Scheme).
Pigs
Pig prices in 2025 are estimated to be on average 6% lower than in 2024. Due to a 3% drop in feed prices in 2025, production costs were marginally lower.
Teagasc economists said pig production was less profitable in 2025, although pig production increased by 5% in volume terms. Pig prices, measured on a monthly basis, declined as the year progressed.
There was a reduction in margins on pig farms, with an estimated margin over feed of 79c/kg for 2025.
Forestry
Due to storm Éowyn, there were huge financial, logistical and supply chain challenges within the forestry sector in 2025.
The impact required replanning of forest operations and supply chains to facilitate the harvest, recovery and marketing of windblown timber.
Felling licence processes were prioritised to support harvesting of affected timber.
All farm income estimates for 2025 and forecasts for 2026 are inclusive of support payments.
Read more
Farm incomes forecast to drop almost 20% in 2026
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