Upward movement in tillage farm income in 2025 – Teagasc National Farm Survey

Tillage farms saw incomes rise by 33% in 2025, with the average farm income reaching €54,900. This builds on the partial recovery in income seen in 2024, data from the preliminary results of the Teagasc National Farm Survey 2025 has revealed.

Prepared by Emma Dillon, Trevor Donnellan, Brian Moran and John Lennon of the Teagasc Agricultural Economics and Farm Surveys Department, tillage 2025 key messages from the Teagasc National Farm Survey 2025 – Preliminary Results are available to read below:

• Output value 2025: Increased due to higher crop yields, partially offset by lower grain prices. Farms with cattle benefitted from higher prices.
• Production costs 2025: Direct costs were up slightly but this was offset by lower overhead costs, leaving costs stable but at a high level.
• Income 2025: Increased due to higher output value, largely driven by a recovery in crop yields.

Favourable establishment conditions during late 2024 and into 2025 prompted an increase in the area of winter cereal crops year-on-year.

Facilitated by more favourable production conditions in 2025, cereal production was in line with the five-year average, but considerably up on the 2024 level.

A total of 6,229 tillage farms were represented in the survey in 2025, and an average Family Farn Income of €54,916 is reported, an increase of 33% year-on-year.

Farms with a secondary cattle enterprise are included in this analysis of tillage farm performance. Such farms also benefitted from the rise in cattle prices in 2025. Data from specialist tillage farms (without livestock) will additionally be reported upon in the final NFS report for 2025 which will be published later in the year.

Table 1 reports the components of average tillage family farm income (FFI). Cereal prices at harvest in Ireland in 2025 were down on the 2024 levels, due to movement in the international stocks-to-use ratios. However, given the increase in production, the value of output for the average farm increased by 7% year-on-year to €174,952.

Targeted support payments continued to be important on tillage farms in 2025 (with large participation in schemes such as the Tillage Incentive Scheme, Straw Incorporation Measure and Protein Aid Scheme). Support payments also increased on average, up 5%, compared to 2024 at €35,760 on average.

Table 1: Components of average tillage family farm income 2025 (Source Teagasc National Farm Survey)

Production costs

Average production costs remained relatively stable on tillage farms in 2025 (down 1%) to €120,040. On average, direct production costs increased by 2% year-on-year to €63,826. Overhead costs declined by 4% to €56,210. On average, the largest direct cost items related to fertiliser at €19,401 which was up 15% compared to 2024. Average contracting charges, at €14,345 were relatively stable (down 1%) year-on-year, while crop protection costs were up 10% to €11,936 and purchased seed costs increased by 4% to €8,774.

In general, expenditure on purchased concentrates is also significant on tillage farms due to the presence of a cattle enterprise in many instances. In 2025, the data indicates that average spending on concentrates on tillage farms declined by 18% to €4,749 on average. Expenditure related to livestock and veterinary increased (up 3%) to €1,879, on average.

Overhead costs

In terms of the decrease in overhead costs on tillage farms in 2025, machinery depreciation accounted for €10,728 of expenditure, on average, a decrease of 17% compared to 2024. Average machinery operating costs remained stable at €12,748 in 2025.

Land rental costs declined by 6% to €10,784. Hired labour costs declined by 26% on average to €2,158. While fuel expenditure increased by 2% on average to €6,112. Costs relating to car, electricity and phone were down 9% to €4,307.

On average, costs relating to buildings depreciation increased in 2025 to €2,559 (up 5%). Expenditure on buildings maintenance increased by 30%, on average to €1,745. Land improvement costs remained relatively stable at €1,905, on average. Other overhead costs on tillage farms increased by 5% in 2025, to €6,493, on average.

Table 2 indicates that the average tillage farm area decreased by 4% in 2025, to 70 hectares. Of this, 40 hectares was dedicated to cereals, up 3% on 2024. The average tillage farm gross margin was €1,599 per hectare in 2025, up 13% year-on-year. This included a Pillar I payment of €279 and other support payments of €236, on average.

Table 2: Average tillage enterprise indicators 2025 (Source: Teagasc National Farm Survey)

In terms of the distribution of average FFI earned on tillage farms in recent years, 15% earned an FFI of less than €5,000 in 2025, down from 24% in 2024. A further 8% of farms earned between €5,000 and €10,000, with 11% earning between €10,000 and €20,000. In 2025, 28% of tillage farms reported an FFI of between €20,000 and €50,000. The proportion with an FFI in excess of €50,000 increased by 6% points to 37% year-on-year.

For more information, view the National Farm Survey 2025 – Preliminary Results publication here.