Sheep farm incomes reach record highs in 2025 – Teagasc National Farm Survey

According to the Teagasc National Farm Survey, the average income rose on sheep farms in 2025, rising by 7% to just over €29,300.

Prepared by Emma Dillon, Trevor Donnellan, Brian Moran and John Lennon of the Teagasc Agricultural Economics and Farm Surveys Department, below are the Sheep 2025 Key messages as published in the Teagasc National Farm Survey 2025 publication:

• Output value: Increased due to higher lamb prices, partially offset by lower output volumes
• Production costs: Down marginally, reflecting the fall in output volume
• Income 2025: Increased slightly due to higher output prices and lower costs. Support payments remained stable.

Sheep and lamb prices in 2025 increased by about 6% on the record levels of 2024. Higher prices reflect the reduction in sheep supply across the EU. There were approximately 14,012 sheep farms represented in the NFS in 2025, having an average income of €29,344, the highest on record. This was a 7% increase compared to 2024.

Key data with respect to the average sheep farm in 2025 are illustrated in Table 1. Despite a reduction in the volume of sheepmeat produced, a continued improvement in prices provided some increase in output value.

Sheep farms with a secondary cattle enterprise also benefitted from the rise in cattle prices. Gross output on the average sheep farm was up 1% year-on-year to €74,615. Support payments remained stable on average year-on-year at €27,779. Such payments remain very important on sheep farms, with continued participation in the Sheep Improvement Scheme, ACRES and the Organic Farming Scheme helping to boost sheep farm income.

Table 1: Components of average sheep family farm income 2025

Production costs

Some reduction in production costs in 2025 also helped to support farm income, with total costs down by 2%, on average. Direct costs declined by 9% on average to €21,876 while overhead costs increased by 5% to €23,396.

Direct costs

In terms of direct costs, the largest component, expenditure on concentrate feed decreased by 15% to €8,295 on average. On the average sheep farm, the volume of concentrates used decreased year-on-year.

Expenditure on purchased bulky feed decreased significantly to €819. Fertiliser expenditure on the average sheep farm decreased by 9% compared to 2024, to €2,598, on average. The volume of nitrogen based fertiliser used decreased on sheep farms in 2025.

Machinery depreciation decreased by 16% on average, to €2,520, while average building depreciation increased by 11% to €1,540. Costs relating to land improvement depreciation also increased. Machinery operating costs remained relatively stable on average (up 1%) to €3,717. Land improvement costs increased by 21% to €1,812. Expenditure relating to car, electricity and phone increased, by 4% to €3,941, on average.

Spending on fuel declined by 12% to €1,390 on average, with land rental costs down 8% to €2,538. Other overhead costs accounted for €3,628 of the total, up 11% year-on-year, on average.

For full details on the Teagasc National Farm Survey 2025, visit here.