Extent of 2023 farm income drop confirmed

The results of a new report by Teagasc confirm a very difficult year for income levels across farm systems in Ireland in 2023. Published today, Tuesday, 23 July, the Teagasc National Farm Survey 2023 is representative of almost 85,000 farms in Ireland.

Dairy and tillage farms, in particular, experienced steep reductions in farm income in 2023. Dairy incomes averaged just under €49,500 in 2023, a decrease of 69% or a decline in excess of €105,000 compared to the 2022 level. Meanwhile, the average tillage farm income was down 71% in 2023 relative to 2022, taking the average income down to just €21,400 – a decrease of €52,000.

This was largely due to a sharp decline in milk and cereal prices, and lower production volumes, in a period of stubbornly high input prices, exasperated by the bad weather.

Internationally there was a sharp downturn in dairy commodity prices in 2023, which in turn affected Irish farm milk prices. Milk prices were down 28% in 2023 compared to 2022. Meanwhile, favourable production conditions for cereal crops at the global level led to a global harvest which put downward pressure on international and Irish grain prices, resulting in a 30-35% reduction in cereal prices.

The decline in dairy and tillage farm incomes in 2023 follows on from a year of record incomes in 2022, illustrating yet again the highly volatile nature of farm income in both of these farm systems in Ireland.

Drystock

Drystock farms also experienced a notable decline in income in 2023. Cattle and sheep farms saw the value of output decrease and, with production costs remaining high, incomes on drystock farms in 2023 were notably lower than in 2022.

• The average ‘cattle rearing’ income – comprising mainly of farms engaged in suckler beef production - was just over €7,400 in 2023, down 15%, or close to €1,350, compared with the 2022 level;
• Average income for the ‘cattle other’ system, comprising mainly of beef finishing farms, was just over €14,700 in 2023 - 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;
• The average sheep farm income was down 22%, at €12,600 in 2023 a decrease of almost €3,500 relative to the 2022 level.

Average family farm income

Taking account of the income developments across the various farm systems, the average family farm income in Ireland dropped by 57% in 2023 to just under €20,000. This decrease in the average farm income is strongly associated with the sharp decline in dairy and tillage farm incomes in 2023. Collectively these two sectors accounted for 53% of farm income in Ireland in 2023.

As all of the income figures above are presented in nominal terms, the high rate of general inflation of recent years needs to be taken into consideration, as this reduces the real value of those incomes. In 2023 inflation in Ireland was over 4%.

Table 1: Teagasc NFS Summary Results for Average Farm Incomes 2020 to 2023

For further details, access the Teagasc National Farm Survey 2023 report here.