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Sustainability performance of Irish farms in 2023 revealed

Teagasc has released its latest sustainability report focusing on the year 2023. The report derives farm performance indicators from the Teagasc National Farm Survey (NFS) to track the progress of Irish dairy, cattle, sheep and tillage farms in improving their economic, environmental and social sustainability. The report provides indicators for 2023 and earlier years.

This year’s publication marks 10 year since the report was first produced and it continues to illustrate the changes that have occurred over an extended period of time.         

Lead author of the report, Dr Cathal Buckley, Teagasc Rural Economy and Development Programme noted; “The value of tracking sustainability metrics over an extended period is demonstrated in the latest report. Having achieved high levels of economic performance in 2022, the average dairy and tillage farm reported a substantially lower level of economic performance (income per hectare and labour unit, and economic viability) in 2023.  This income volatility was due to output price movements and weather related effects on production levels and production costs.”  However, dairy and tillage farm systems still outperformed the drystock farm systems in economic terms in 2023.

Measured on a whole farm or per hectare basis, it is notable, that greenhouse gas (GHG) emissions declined on the average dairy farm in 2023, compared to preceding years, on the back of reduced chemical nitrogen fertiliser use and slightly lower stocking rates.  However, the emission intensity of production (carbon footprint of milk production) increased slightly due to lower milk output in 2023.  Dairy farm ammonia emissions, whether measured per hectare or per farm, also declined, while the ammonia emissions intensity of milk production increased.  However, dairy farms had the lowest nitrogen (N) surplus per hectare in 2023 relative to any year since the report was first published and this has a positive implication in limiting the impact of dairy production on water quality.

The report also illustrates the continuing adoption of actions to address environmental emissions, particularly by dairy farmers.  For example, in 2023, 38% of slurry on cattle farms and 81% on dairy farms was spread using Low Emissions Slurry Spreading (LESS) equipment. Further progress was also made by dairy farms in 2023 in increasing the use of lower emissions chemical fertilisers, with 27% of the nitrogen applied in 2023 on dairy farms in the form of protected urea.  However, its use across drystock farms remains low at between 3 to 6% of total chemical N applied.

Comparing farm performance for recent years, Trevor Donnellan, Head of the Agricultural Economics and Farm Surveys Department in Teagasc, and co-author of the report however noted: “From a socio-economic point of view, the significant decline in farm incomes in 2023 presented a serious challenge to the economic viability of many dairy and tillage farms.  The sharp drop in dairy and tillage incomes in 2023, is in stark contrast to income levels on these farms in 2022.  This underlines the importance of reporting metrics over an extended period of time, as annual results can be affected by positive or negative market price movements, or weather shocks. It’s only by examining longer term trends that we can get a true reflection of developments”.

Commenting on the release of the report, Teagasc Director, Professor Frank O’Mara, stated; “Since it was first published 10 years ago, the Teagasc Sustainability Report has provided a vital reference source to track the economic, environmental and social sustainability of different farm systems across a changing policy environment. The report provides essential information on the sustainability performance of Irish agriculture and is of use to a wide variety of stakeholders”.

The full 2023 Sustainability Report can be viewed here