The last few months of 2025 have seen a big lift in cattle prices on beef farms.
In many cases weanlings and finished cattle are making €1,000 per head more than last year and for an average suckler farmer selling 10 weanlings, this is leading to €10,000 extra income in the bank account.
Where total sales for the year are up €20,000 on a 20-cow herd, the additional income could lead to an additional tax bill of up to €10,000 for the farmer paying income tax at the marginal rate.
Farmers need to be aware now of what their farm profits are for 2024, what tax is payable on these profits and perhaps more importantly what the likely farm income is going to be for 2025.
For farmers looking at 2024 figures and expected income for 2025, there are possibilities to reduce income tax bills, invest in the farm for the future, invest in family and make the farm a safe and more enjoyable place to live and work. Below we take a look at some case studies of how farmers in different situations could deal with higher tax bills in 2025.
Case study one
Q. Sean and Anna farm 100 acres of land in Longford. They farm 50 suckler cows selling 40 weanlings at eight months of age in Granard mart every October.
This year Sean’s weanlings are up €900/head on the 2024 sales value, so they have an extra €36,000 in sales revenue. Sean works part-time earning €35,000/year and Anna works full time in the HSE earning €55,000 annually. They have two children in secondary school.
A. Sean could consider paying his children for the work they carry out on the farm. Anna could also increase her pension contributions and Sean could also start making pension contributions. Income averaging would help with cashflow, while stock relief would be available on the increase in stock values. Sean could also improve handling facilities on an outfarm before the year end.
Case study two
Q. Patrick farms 30 acres of owned land and 20 acres of rented land just outside Balla in Co Mayo. He farms 25 suckler cows selling autumn-born weanlings at 10 months of age.
He’s 100% AI and this year’s weanlings averaged €2,400/head, an increase of €1,000 on last year leading to additional sales of €20,000. He is working full-time off farm as an engineer earning €85,000/year. He is 32 years of age, not married and has no dependants. His father is also farming and he uses the home machinery on his farm.
A. Patrick should consider increasing his pension contributions and use the tax relief available in 2024 and 2025. He should also consider paying his Dad a wage for the jobs he carries out on the farm.
Patrick could upgrade the shed facilities before the winter to make feeding and working around the yard in the evenings safer, by upgrading the lighting and replacing old feed barriers with head locking barriers. Patrick is also going to speak to his accountant about income averaging.
It's not too late to take actions to reduce your 2025 income tax bill.
Options to reduce your income tax bills
Stock relief
Stock relief is available on the increase in the value of stock on the farm at the year-end compared to the previous year. In summary, Revenue will give farmers an allowance of 25%, 50% or 100% of the increase in stock value.
Family wages
Paying family members a wage for carrying out work on the farm is an allowable deduction from your farming profits. To comply with PAYE modernisation rules, these family members need to be put on the payroll this year and a wage paid to their bank account and reported to Revenue as the payroll is processed.
Income averaging
Use income averaging where appropriate. Income averaging allows farmers to pay tax based on the average of five years’ farming profits and losses, thereby reducing immediate cashflow pressures for income tax and preliminary tax liabilities.
Pension contributions
Pension contributions are a great way to reduce tax liabilities, reduce preliminary tax and puts money away to provide a future income in retirement. While a lot of farmers have made provision through a private pension fund, many are not contributing enough or making use of the maximum contribution limits.
A pension contribution of €8,000 will save income tax of €3,200 at the marginal rate.
Facilities and Safety improvements
Investing in the farm by using additional profits generated can make the farm more profitable in the future, a safer place to work and more efficient for one person to manage.
Improve handling facilities, calving facilities, yard lighting, gates and barriers to make the farm safer.
These profits are the result of many years of breeding and improving the farm performance.
With the hard work and profits managing your tax cashflow is incredibly important.
Suckler and beef farms need to get working on their 2024 accounts and tax returns and estimate 2025 income tax liability.
31 October 2025 – File income tax return 2024.31 October 2025 – Pay balance of Income Tax for 2024.31 October 2025 – Pay Preliminary Tax for 2025.19 November 2025 – Extended deadline if you both pay and file using ROS online.Pros and Cons of some options farmers are considering
Build a shed? – too late in the year for this to impact on 2025 tax bill.Buy more cattle? – won’t decrease profits as stock has a value in the accounts.Change the tractor? – expensive and has to be paid for either out of cashflow or borrowings. Buy based on the needs of the farm. Capital Allowances on machinery are 12.5% per annum. Pay the tax? – examine all other options first.Increase my pension contribution? – yes, a great way of saving tax at the marginal rate and provides an income in the future for the farmer, giving them the option of retiring and passing the farm onto the next generation.Should I look to go down the company route and what are the pros and cons? – too late for 2025, maybe possible for 2026 but each case needs to be examined on its merits.
The last few months of 2025 have seen a big lift in cattle prices on beef farms.
In many cases weanlings and finished cattle are making €1,000 per head more than last year and for an average suckler farmer selling 10 weanlings, this is leading to €10,000 extra income in the bank account.
Where total sales for the year are up €20,000 on a 20-cow herd, the additional income could lead to an additional tax bill of up to €10,000 for the farmer paying income tax at the marginal rate.
Farmers need to be aware now of what their farm profits are for 2024, what tax is payable on these profits and perhaps more importantly what the likely farm income is going to be for 2025.
For farmers looking at 2024 figures and expected income for 2025, there are possibilities to reduce income tax bills, invest in the farm for the future, invest in family and make the farm a safe and more enjoyable place to live and work. Below we take a look at some case studies of how farmers in different situations could deal with higher tax bills in 2025.
Case study one
Q. Sean and Anna farm 100 acres of land in Longford. They farm 50 suckler cows selling 40 weanlings at eight months of age in Granard mart every October.
This year Sean’s weanlings are up €900/head on the 2024 sales value, so they have an extra €36,000 in sales revenue. Sean works part-time earning €35,000/year and Anna works full time in the HSE earning €55,000 annually. They have two children in secondary school.
A. Sean could consider paying his children for the work they carry out on the farm. Anna could also increase her pension contributions and Sean could also start making pension contributions. Income averaging would help with cashflow, while stock relief would be available on the increase in stock values. Sean could also improve handling facilities on an outfarm before the year end.
Case study two
Q. Patrick farms 30 acres of owned land and 20 acres of rented land just outside Balla in Co Mayo. He farms 25 suckler cows selling autumn-born weanlings at 10 months of age.
He’s 100% AI and this year’s weanlings averaged €2,400/head, an increase of €1,000 on last year leading to additional sales of €20,000. He is working full-time off farm as an engineer earning €85,000/year. He is 32 years of age, not married and has no dependants. His father is also farming and he uses the home machinery on his farm.
A. Patrick should consider increasing his pension contributions and use the tax relief available in 2024 and 2025. He should also consider paying his Dad a wage for the jobs he carries out on the farm.
Patrick could upgrade the shed facilities before the winter to make feeding and working around the yard in the evenings safer, by upgrading the lighting and replacing old feed barriers with head locking barriers. Patrick is also going to speak to his accountant about income averaging.
It's not too late to take actions to reduce your 2025 income tax bill.
Options to reduce your income tax bills
Stock relief
Stock relief is available on the increase in the value of stock on the farm at the year-end compared to the previous year. In summary, Revenue will give farmers an allowance of 25%, 50% or 100% of the increase in stock value.
Family wages
Paying family members a wage for carrying out work on the farm is an allowable deduction from your farming profits. To comply with PAYE modernisation rules, these family members need to be put on the payroll this year and a wage paid to their bank account and reported to Revenue as the payroll is processed.
Income averaging
Use income averaging where appropriate. Income averaging allows farmers to pay tax based on the average of five years’ farming profits and losses, thereby reducing immediate cashflow pressures for income tax and preliminary tax liabilities.
Pension contributions
Pension contributions are a great way to reduce tax liabilities, reduce preliminary tax and puts money away to provide a future income in retirement. While a lot of farmers have made provision through a private pension fund, many are not contributing enough or making use of the maximum contribution limits.
A pension contribution of €8,000 will save income tax of €3,200 at the marginal rate.
Facilities and Safety improvements
Investing in the farm by using additional profits generated can make the farm more profitable in the future, a safer place to work and more efficient for one person to manage.
Improve handling facilities, calving facilities, yard lighting, gates and barriers to make the farm safer.
These profits are the result of many years of breeding and improving the farm performance.
With the hard work and profits managing your tax cashflow is incredibly important.
Suckler and beef farms need to get working on their 2024 accounts and tax returns and estimate 2025 income tax liability.
31 October 2025 – File income tax return 2024.31 October 2025 – Pay balance of Income Tax for 2024.31 October 2025 – Pay Preliminary Tax for 2025.19 November 2025 – Extended deadline if you both pay and file using ROS online.Pros and Cons of some options farmers are considering
Build a shed? – too late in the year for this to impact on 2025 tax bill.Buy more cattle? – won’t decrease profits as stock has a value in the accounts.Change the tractor? – expensive and has to be paid for either out of cashflow or borrowings. Buy based on the needs of the farm. Capital Allowances on machinery are 12.5% per annum. Pay the tax? – examine all other options first.Increase my pension contribution? – yes, a great way of saving tax at the marginal rate and provides an income in the future for the farmer, giving them the option of retiring and passing the farm onto the next generation.Should I look to go down the company route and what are the pros and cons? – too late for 2025, maybe possible for 2026 but each case needs to be examined on its merits. 
SHARING OPTIONS