Dairy farm incomes will jump to an average of €75,000 to €80,000 in 2017, according to Teagasc.

The income level is due to the combination of recovering milk prices, higher production and a static cost environment, Teagasc said in its mid-year commentary on the performance of Irish agriculture.

Milk prices are now back to 33c/l and will help average dairy farm margins double this year. Production could rise by 7% nationally in 2017.

The report forecasts broadly stable income this year for drystock and tillage systems.

IFA dairy chair Seán O’Leary said the improvement is welcome but is badly needed after a difficult cashflow period.