Teagasc confirms further growth in farm incomes across all systems in 2025

The results of a new report from economists at Teagasc have confirmed a further increase in farm income took place across all the major farm systems in Ireland in 2025.

Farming incomes across the country have continued 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 on Cattle Rearing, Cattle Other and Dairy farms.

As a result, over half of the farms in the survey in 2025 were considered economically viable, a sharp improvement on the previous year.

While incomes improved in all farm systems, substantial differences remain between the incomes achieved in dairy farming relative to other farm systems.

The reported figures are based on the Teagasc National Farm Survey (NFS) which has been 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.

This increase followed the marked recovery already achieved in 2024 following a very difficult year in 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.

The recent strength of dairy incomes underlines how sensitive dairy farm profitability remains to movements in milk price.

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 than on any of the other farm systems.

Cattle Rearing Farms

Incomes on Cattle Rearing farms, which typically focus on suckler beef production, increased strongly 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.

While 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.

With the average income rising by 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 associated with 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, but the increase was modest in comparison to the two cattle systems.

Sheep farm income rose by 7% to just over €29,300.

Gross output was broadly unchanged in 2025, reflecting an increase in lamb prices, alongside a reduction in output volume.

However, a 9% reduction in direct costs and stable overhead costs supported a further, if smaller, improvement in income following the substantial gains recorded in 2024.

Tillage Farms

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.

Due to a substantial global grain harvest, grain prices were lower in 2025, but this was offset by a significant improvement in Irish cereal yields.

This led to a 7% increase in gross output in 2025. Costs rose only slightly, allowing the improvement in output value to feed through to additional farm income.

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 this year.

Average Farm Income

Across all farm systems, the average family farm income rose to just over €53,800 in 2025, an increase of 49% compared to the previous year.

The widespread nature of the income improvement in 2025 is evident in the increase achieved in every farm system tracked by the National Farm Survey.

These results highlight the role which the recent period of high milk, cattle and sheep prices can play in supporting farm viability.

Volatility in Average Farm Incomes

Looking across the last 5 years there has been considerable volatility in incomes across all farm systems.

The 5-year average (2021-25) incomes levels are considerably below the incomes achieved in 2025.

More detailed results focussing on individual farm enterprises will be published in the coming weeks.

The National Farm Survey Report for 2025 and the associated Dashboard can be accessed at: https://teagasc.ie/publications/national-farm-survey-2025/