Dairying surged into a different economic league last year, while suckler farms were the only category to see their viability decrease, Teagasc’s National Farm Survey shows.

The average dairy family farm income jumped by €34,000 last year as milk prices recovered, to €86,000.

This increase is worth more than twice as much as the average income of drystock farmers surveyed.

Some 85% of dairy farms are now deemed viable, despite the rising costs of expansion.

“They have increased their debt, but got a return for it,” said Teagasc economist Brian Moran.

While dairy farmers account for one in five farmers surveyed, they made half of all investments. Those who increased milk supply by more than 50% had an average family income of €146,565 last year, the highest of any category.

Meanwhile, only one in five suckler farms was viable on its own, unchanged from 2016, and the number of those sustainable with off-farm income decreased.

Investment on suckler farms fell by 19%, illustrating “pessimism” in the sector, said Teagasc economist Emma Dillon.