Family farm incomes are to rise by 7% in 2020, according to the Teagasc annual review and outlook 2020. Teagasc expects incomes this year to also rise by 7%.

There was significant variation in margin increases across the sectors.

A strong recovery in the dairy sector after adverse weather conditions in 2018 was the primary driver.

Input costs, particularly feed and fertiliser, are expected to go down in 2020 and this will increase margins for dairy farms and sheep farms.

But incomes will remain modest. Suckler farmers and beef finishers will see no change in their margins.

Tillage will see an increase but a quarter of farms will remain unprofitable, down from half of farms this year. Pigs were the major success story for Irish agriculture in 2019, as prices moved from a 20-year low in the first quarter to a 20-year high for the remainder of the year.

Key figures

Dairy: net margin of €1,353/ha in 2019 v €1,514/ha in 2020 (up 12%).

Suckling: net margin of -€68/ha in 2019 v -€64/ha in 2020 (up 6%).

Beef finishing: net margin of -€52/ha in 2019 v -€60/ha in 2020 (down 15%).

Sheep: net margin of €79/ha in 2019 v €118/ha in 2020 (up 49%).

Tillage: net margin of €35/ha in 2019 v €110/ha in 2020.

Read more

Beef and sheep: struggles to continue

Dairy expansion to bring incomes close to €80,000

Tillage income rise to paper over cracks

2020 to be the year of the pig