Sharp decline in tillage incomes in 2023

Family Farm Income on tillage farms declined by 71% year-on-year, the Teagasc National Farm Survey 2023, published today, July 23, has shown. Representing a total of 6,246 tillage farms, the average earned a Family Farm Income of €21,399, or €292/ha for a 73ha farm.

Production and harvesting conditions were particularly challenging on Irish tillage farms in 2023, with unfavourable weather resulting in delayed planting and reduced yields for many crops. This was at odds with the global picture, with a good international harvest resulting in downward pressure on global cereal prices.

Irish cereal yields were down significantly for many crops in 2023 compared to 2022 due to less favourable weather during parts of the growing season and again at harvest time. For example, the spring barley crop was particularly affected, with yields per hectare down 23%. Irish cereal harvest prices were also down 30% to 35% in 2023 compared with harvest prices in 2022, reflecting increased grain availability internationally due to favourable weather conditions in key production regions.

Overall, the reduction in volume and value resulted in a 20% reduction in the value of output on Irish farms in 2023. In addition, production costs increased by 8% on average compared to 2022. While some cost items such as fertiliser fell in price over the course of 2023, the decline came too late in the growing season to bring about significant cost savings.

Likewise, other cost items, such as land rental also increased. Taken together, the decrease in the value of output and increase in costs, despite the introduction of a range of scheme support measures, resulted in a sharp decline in average Family Farm Income in 2023 from the high in 2022.

Key messages:

• Output value decreased due to lower grain prices and lower yields;
• Production costs increased due to increase in both direct and overhead costs;
• Income decreased due to a decline in output value and a rise in production costs.

The above is just a brief summary of the performance of tillage farms as measured through the National Farm Survey 2023. For more detailed information on tillage farm performance, access the full report by Emma Dillon, Trevor Donnellan, Brian Moran and John Lennon here.