Dairy farmers are to be worst hit by this year's combined long winter and summer drought, according to the mid-year outlook published this Tuesday by Teagasc economists.
"The current forecast is that the average-sized Irish dairy farm could see net margin decrease by 60% in 2018," they wrote, with average dairy farm income falling to €45,000 from a high of €86,000 last year.
"Overall, farm income will be down substantially across all the main farm systems in 2018," Teagasc added.
Tillage farmers are expected to see their average income fall by 25% as rising prices fail to compensate for lower yields and an estimated 6% rise in costs. "However, much uncertainty still surrounds the full yield potential of all crops and their prices at this stage of the harvest," Teagasc warned.
Increased feed costs
Drystock farmers will see a hit to margins from increased feed costs, with volumes fed and prices both rising in the first half of this year, while cattle and sheep prices remain broadly stable compared with last year.
Suckler and beef farmers are expected to see a 12% drop in farm income.
"On sheep farms, net margin is forecast to decrease by 8% in 2018, with the continuing weather impacts on forage production and feed costs more than offsetting the positive impact of higher lamb prices," Teagasc economists wrote.
Read more
All-island concern for winter fodder stocks
Feed mills running at winter capacity
Dairy management: finding alternative winter feed and managing cashflow
Average dairy farm income hits €86,000 as sucklers and sheep lag behind
Dairy farmers are to be worst hit by this year's combined long winter and summer drought, according to the mid-year outlook published this Tuesday by Teagasc economists.
"The current forecast is that the average-sized Irish dairy farm could see net margin decrease by 60% in 2018," they wrote, with average dairy farm income falling to €45,000 from a high of €86,000 last year.
"Overall, farm income will be down substantially across all the main farm systems in 2018," Teagasc added.
Tillage farmers are expected to see their average income fall by 25% as rising prices fail to compensate for lower yields and an estimated 6% rise in costs. "However, much uncertainty still surrounds the full yield potential of all crops and their prices at this stage of the harvest," Teagasc warned.
Increased feed costs
Drystock farmers will see a hit to margins from increased feed costs, with volumes fed and prices both rising in the first half of this year, while cattle and sheep prices remain broadly stable compared with last year.
Suckler and beef farmers are expected to see a 12% drop in farm income.
"On sheep farms, net margin is forecast to decrease by 8% in 2018, with the continuing weather impacts on forage production and feed costs more than offsetting the positive impact of higher lamb prices," Teagasc economists wrote.
Read more
All-island concern for winter fodder stocks
Feed mills running at winter capacity
Dairy management: finding alternative winter feed and managing cashflow
Average dairy farm income hits €86,000 as sucklers and sheep lag behind
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