Teagasc confirms rebound in farm incomes across all systems in 2024

The results of a new report from economists at Teagasc confirm a substantial recovery in family farm income (FFI) across all farm systems in Ireland in 2024. Following an extremely difficult year in 2023, average family farm income rose by 87% to just under €36,000 in 2024.

Income growth was driven by a combination of improved farm output prices, some easing in input costs and additional support payments under the new CAP. Particularly strong FFI improvements were recorded for Dairy, Tillage and Sheep farms on average, but this must be interpreted in the context of particularly low-income figures in 2023.

Dairy Farms

Despite a poor start to the production season, dairy farm incomes more than doubled in 2024, rising by 113% to an average of €108,200. The recovery in dairy incomes in 2024 was driven by much improved milk prices and favourable grazing conditions from mid-year onwards which boosted production later in the year. In addition, input costs, such as feed and fertiliser, eased slightly relative to 2023, as did overhead costs. The strength of the income recovery is a reminder that Irish dairy farm incomes are highly sensitive to milk price movements in successive years, a factor over which dairy farmers have no control.

Cattle Rearing Farms

Following an extremely poor outcome in 2023, incomes on Cattle Rearing farms, which typically focus on suckler beef production, rebounded strongly in 2024.  The average income increased by 93% to €13,500. Higher cattle prices and lower production costs contributed to the improved economic performance of these farms. While the core support payment remains the Basic Income Support for Sustainability (BISS), in addition the Suckler Carbon Efficiency Programme (SCEP), the Organic Farming Scheme (OFS), the National Beef Welfare Scheme (NBWS) and ACRES also helped to underpin the income improvement.

Cattle Other Farms

Cattle Other farms, including beef finishing and store cattle enterprises, experienced an income increase of 32% in 2024, with the average income rising to over €18,000. This increase was driven by firmer prices for finished animals and lower production costs. However, the increase in finished cattle prices was more modest than for younger animals and this limited the increase in income observed in this farm system. Support payments also remained an important component of income on these farms.  The increase in income for this category of farm is modest relative to other farm types.

Sheep Farms

The average income on Sheep farms more than doubled in 2024, increasing by 115% to just under €28,000. The 18% increase in lamb prices was one driver of improved incomes in 2024, with a fall in input costs also benefitting sheep producers compared to 2023. Continued support through the Sheep Improvement Scheme, Organic Scheme and ACRES contributed to the overall income improvement in this system. The increase in income observed in 2024 was also associated with the timing of the receipt of some farm payments.

Tillage Farms

Following a year of extremely low income in 2023, tillage farms saw incomes improve in 2024, with the average income rising by 101% to €38,700. This turnaround was due to a combination of factors. As a result of particularly difficult winter planting conditions, there was a switch towards spring crops. These spring crops fared much better than winter crops and overall yields were slightly better than in 2023. Favourable weather during the summer period also aided grain quality.  Grain prices were up marginally, while input costs moderated. Lower fertiliser prices were of particular benefit, although land rental costs remained high. Tillage farms with a secondary cattle or sheep enterprise will also have benefitted from the improved returns from drystock production in 2024 compared to 2023.

Average Farm Income

Across all farm systems, the average family farm income rose to just under €36,000 in 2024, an increase of 87% compared to 2023. The widespread nature of the income recovery highlights how improved output prices, favourable weather, support payments and some easing of costs can support farm viability. At 42%, the proportion of farms categorised as economically viable in 2024 was one of the highest on record.

Table 1: Teagasc NFS Summary Results for Average Farm Incomes 2020 to 2024^[1]

Source: Teagasc National Farm Survey

[1] In line with EU FADN methodology, Family Farm Income (FFI) represents the total return to family labour, management and capital investment in the farm business of which there is variation across farm systems.

[2] Data for 2023 has been revised to reflect minor changes in the composition of the farm population identified in the Farm Structures Survey published by the Central Statistics Office.

View the National Farm Survey 2024 – Preliminary Results Report in full here