Incomes on sheep farms fell by 22% to an average of €12,625 in 2023, the National Farm Survey shows.

Following a sharp increase in 2022, average production costs remained relatively stable on sheep farms in 2023. Some 43% of sheep farmers earned less than €5,000 last year compared to 2022.

Fifteen per cent of farmers in the sector earned between €5,000 and €10,000 last year.

Direct costs were up marginally by 3% to €22,835, while overhead costs went down 1% to €22,601.

The cost of land improvement maintenance increased by 26% last year for sheep farmers to €1,355.

In 2023, the gross margin was down 8% to €797/ha while direct payments were worth €266/ha, a rise of 7% year on year.

The average flock size increased by 4% to 135 head.