In the outlook report, presented on Tuesday 1 December, Teagasc economists indicated that family farm incomes could rise by 5% in 2016. This translates as an increase from an average income of €24,000 in 2015 to an average income of €25,000 in 2016.

Overall family farm incomes are down 9% in 2015, according to the economists.

Incomes improved considerably on cattle farms in Ireland in 2015, the report said, but dairy farmers’ incomes declined. The fall in average incomes in 2015 is mainly due to the effect of the falling milk price. “This demonstrates the growing importance of the dairy industry to Irish farming”, said Thia Hennessy economist with Teagasc.

Also in 2015 pig prices were down, sheep prices were up, while the output from the tillage sector was down slightly due to lower area.

Teagasc economists presented their findings at a conference, 'Outlook 2016 - Economic Prospects for Agriculture', which took place in the RDS, Dublin.

Alongside predicting an increase in farm incomes, the outlook said that further expansion in milk production is expected in 2016. It said that "this expansion, coupled with a modest improvement in milk prices, should see dairy farm incomes continue to recover next year."

However, some of the beef price increase in 2015 is anticipated to be reversed in 2016, as the supply of animals available increases in Ireland and the EU generally.

2015 saw an income boost of €2,700 for the average suckler farmer in Ireland.

"The lower numbers of animals available this year and the strength of the euro helped to boost cattle prices”, said Kevin Hanrahan economist with Teagasc.

Prospects for the sheep sector in 2016 are for a continuing increase in sheep prices due to tight global supplies of lamb.

Some recovery in both pig prices and grain prices is also anticipated next year.

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Full coverage: Teagasc outlook 2016