Financial performance of organic farms

Enda O’Hart, Organic Advisor, Teagasc Castlerea, examines the recently released analysis of the financial performance of organic farms.

Recently Teagasc released some financial performance figures for organic farms for 2024. The figures were compiled by the National Farm Survey section within Teagasc to provide data on farm output, costs and income.

2024 was the first year data was collected from a dedicated cohort of organic farmers and will be repeated annually. The National Farm Survey has been collecting data from farmers since 1972 and reporting it to the European Commission. Data form 84 organic farmers spread right across the country formed the basis of the survey.

One of the key metrics assessed was Family Farm Income (FFI), which measures the total gross output (including Direct Payments) minus all farm costs excluding family labour. The findings for FFI on organic Cattle Rearing farms (farms that keep a majority of suckler cows), was that their income was on average €19,653. The FFI for organic Cattle Other farms (farms that keep mostly drystock) was on average €36,825, and the FFI for organic Lowland Sheep farms was €45,788. The average farm size for each category was 43ha Cattle Rearing, 53ha Cattle Other and 69ha for Lowland Sheep farms.

The direct costs (expenses directly involved in production) were €11,811 on Cattle Rearing, €25,649 on Cattle Other and €21,246 on Lowland Sheep farms. Another key finding was the importance of Direct Payments for organic farmers. On Cattle Rearing farms €28,634 was paid in total Direct Payments, with the Organic Farm Scheme (OFS) payment making up 35% of the total Direct Payment figure. On Cattle Other organic farms €40,435 was paid in total Direct Payments with the OFS making up 33% of this. On Lowland Sheep organic farms €44,228 was paid in total Direct payments, with the OFS payment comprising of 30% of this.

In summary we can say that on average, organic farmers in 2024 had more extensive production systems, had lower market output and margins, were larger farms, had lower direct costs and overall higher incomes. There was a large reliance on Direct Payments with the OFS payment making up on average a third of total Direct Payments.

More from Teagasc Daily: First financial baseline for Irish organic farms