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The average farm income rose to over €31,300 in 2017, according to the preliminary results of the 2017 Teagasc National Farm Survey.
This was an increase of over €7,500 on the 2016 figure. However, the results also show that 35% of farms earned less than €10,000 in 2017.
Teagasc has said that the rise in average farm income is almost completely driven by the very large increase in income observed on dairy farms. It remains the case that more than two thirds of the farms represented by the survey saw little change in their income in 2017 in comparison to 2016.
Dramatic increase
The 2017 survey shows a dramatic increase in income on dairy farms, driven by the substantial jump in the price of milk and continuing growth in the volume of milk produced. Teagasc has said that the sharp recovery in milk prices in 2017 led to much higher profitability in dairy farming than was the case in 2016.
The average income on dairy farms is estimated to have increased from just over €52,000 in 2016 to over €86,000 in 2017. Over 70% of dairy farms achieved an income in excess of €50,000 in 2017.
The 2017 survey also shows evidence of increased farm investment and a higher level of expenditure on hired labour compared to 2016.
Cattle systems
Meanwhile, results for the two cattle systems in the Teagasc National Farm Survey, cattle rearing (suckler farms) and cattle other (finishers), show very little change in income.
The average income per farm in 2017 for these two systems was €12,500 on suckler farms and €16,500 for finishers.
Other systems
In 2017, the average income on sheep farms increased by almost €1,000, to €17,000. This was largely due to the support provided to the sector as a result of the Sheep Welfare Scheme.
The average income on tillage farms also increased from €31,000 in 2016 to €37,200 last year. Teagasc associated the increase with higher yields and lower production costs.
Given that tillage farms are typically larger in size than other farm types, the average income on tillage farms in 2017 remained low.
Cost pressures
In the 2017 Teagasc National Farm Survey, the results show some of the cost pressures associated with the early onset of winter conditions last year.
The financial impact on farms of the fodder crisis will be reflected in farm incomes for 2018, rather than 2017, Teagasc said.
Stay tuned to the Irish Farmers Journal today where we will have a sector-by-sector breakdown of the National Farm Survey.
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