Drystock incomes hit by higher costs and lower output in 2023
Higher production costs and declines in output over the course of 2023 had a negative impact on the incomes generated on drystock farms nationally, results published through the Teagasc National Farm Survey (NFS) 2023 have shown.
Published today, July 23, the report shows that farms mainly specialised in suckler beef production – ‘Cattle Rearing’ – had increased output of 6% in 2023 on account of mainly higher cattle prices.
However, production costs on these farms increased by 11% on average in 2023, which was influenced by the difficult weather conditions in the second half of the year and consequent rise in feed costs.
The levels of support payments received were also discussed. The average value of support payments for Cattle Rearing farms was up 10% on the 2022 level. The introduction of the Suckler Carbon Efficiency Programme (SCEP), National Beef Welfare Scheme (NBWS) and the Agri-Climate Rural Environment Scheme (ACRES) provides important support to incomes for farms in this system. However, the average Cattle Rearing income was just over €7,400 in 2023, down 15%, or close to €1,350, compared with the 2022 level.
Cattle other
Results on the 'Cattle Other' system, comprising mainly of beef finishing farms, but also includes farms selling store cattle, were also outlined through the NFS report.
In this farm category, the average value of farm output decreased by 5%, mainly due to a reduction in volume, including a decline in the weights of finished cattle. Finished prices declined during the summer and autumn of 2023, which impacted negatively on many farms in this system.
Support payments on these farms were relatively unchanged on average. The Fodder Support Scheme continued to support incomes on these farms.
Production costs on Cattle Other farms were relatively unchanged on average in 2023. Overall, the decline in output value resulted in average income of just over €14,700 in 2023 for the Cattle Other system, a decrease of almost €3,400 or 19% compared with the 2022 level.
Aggregating across the two cattle systems, the average income for Cattle farms in 2023 was just under €12,600, a decline of 14% on the 2022 level.
Sheep
The Sheep system experienced a 5% decrease in the value of farm output on average in 2023,the NFS report highlights, reflecting a combination of lower lamb prices and a lower volume of output.
However, production costs on the average sheep farm in 2023 remained relatively unchanged, with higher feed expenditure offset by a slight decline in overhead costs.
On average, the level of direct payments for Sheep farms was up 10%, aided by payments from the Sheep Improvement Scheme. Overall, the average sheep farm income was down 22%, at €12,600 in 2023 a decrease of almost €3,500 relative to the 2022 level.
Access the full Teagasc National Farm Survey 2023 report here