Farm incomes grow in 2025
The results of a new report from economists at Teagasc have confirmed a further increase in farm income across all the major farm systems in Ireland in 2025, as incomes continue to recover from the difficult year experienced in 2023.
Income growth was driven by continued improvement in farm output prices, with particularly strong income gains recorded in the categories, cattle rearing, cattle other and dairy farms.
As a result, more than half of the farms in the survey in 2025 were considered economically viable, a sharp improvement on the previous year. Substantial differences remain between incomes in dairy farming and other farm systems.
The figures are based on the Teagasc National Farm Survey (NFS) published annually since the early 1970s. It forms part of the EU wide Farm Sustainability Data Network, and all EU countries are required to collect and submit farm income and sustainability data to the network.
Dairy Farms
Dairy farm incomes increased by 41% in 2025 to an average of €153,300. That followed the marked recovery in 2024 following a difficult 2023.
The improvement in 2025 was driven primarily by stronger milk prices, increased milk output and higher revenues from the sale of calves and cull cows which contributed to an increase in gross output on the average dairy farm of 13%.
In aggregate direct and overhead costs changed only marginally, reflecting both increases and decreases in a range of cost items. Overall, dairy production costs remained at the elevated level which first emerged in 2022.
While the average income on dairy farms considerably exceeds that of the other farm systems, the intensive nature and larger scale of dairy farms mean that they require a higher level of labour input.
Cattle Rearing Farms
Incomes on Cattle Rearing farms, which typically focus on suckler beef production, increased again in 2025. The average income rose by 74% to close to €24,100. This level of income is unprecedented for Cattle Rearing farms. Sharply higher young cattle prices supported a 22% increase in gross output. Costs changed only marginally, allowing much of the additional output value to feed through to an increase in farm income.
Cattle Other Farms
Cattle Other farms, including beef finishing and store cattle enterprises, recorded the strongest percentage income growth of any farm system in Ireland in 2025 as the average income rose 81% to €32,800.
Much stronger prices for finished and store animals drove a 31% increase in gross output, which more than offset a 12% rise in direct costs of additional feed and fertiliser expenditure. Farms operating a dairy-beef system also did particularly well in 2025.
Sheep Farms
The average income also rose on Sheep farms in 2025, by 7% to just over €29,300. Gross output was unchanged in 2025, reflecting an increase in lamb prices, alongside a reduction in output volume. A 9% reduction in direct costs and stable overhead costs supported a further, if smaller, improvement in income following gains recorded in 2024.
Tillage Farms
Tillage farms saw incomes rise by 33% in 2025, to €54,900. Due to a substantial global grain harvest, grain prices were lower in 2025, but offset by improvement in Irish cereal yields. That led to a 7% increase in gross output in 2025. Costs rose slightly, allowing the improvement in output value to feed through to additional income.
Farms with a secondary cattle enterprise are included in this analysis of Tillage farm performance. Such farms also benefited from the rise in cattle prices in 2025.
Average Farm Income
Across all farm systems, the average family farm income rose to just over €53,800 in 2025, an increase of 49% on the previous year. The income improvement in 2025 is evident in the increase achieved in every farm system tracked by the National Farm Survey. The results highlight the role the recent period of high milk, cattle and sheep prices can play in supporting farm viability.
Volatility in Average Farm Incomes
Looking at the last 5 years there has been considerable volatility in incomes across all farm systems. The 2021-25 average incomes levels are below the incomes achieved in 2025.
More detailed results focussing on individual farm enterprises will be published in the coming weeks.