Teagasc has issued a profit warning to farmers that soaring input costs next year will result in a “clawback” of any income gains made in 2021.

Farm incomes are forecast to drop by 19% next year due to “unprecedented fertiliser prices” along with energy, fuel and feed cost inflation.

Teagasc described the situation as a “hangover” for Irish farms.

Fertiliser prices could be more than double the already “record prices” seen this year.

Its price and availability represent “twin concerns” for farm profitability, Teagasc warned in its outlook for 2022.

The tillage sector may take the biggest hit with an estimated farm income drop of 35%.

Dairy, sheep, suckler and other beef farm incomes will fall by 16%, 14%, 31% and 17% respectively.

Incomes next year will be heavily influenced by fertiliser market developments and spring weather conditions, which will determine the carryover of fodder into 2023.