Extreme volatility has been seen across dairy and tillage farm incomes in recent years, and it has become a real challenge for farmers, data from the national farm survey 2025 shows.
This volatility has been driven by a mix of fluctuating output and input prices, and in part by variations in weather patterns over the years.
It is also notable that cattle and sheep incomes are up over recent years, however, 2026 has proved more challenging in terms of beef prices.
Over the last 10 years, average dairy incomes hit a low of €51,122 in 2023, compared to a high of €157,591 for 2022, as seen in Figure 1, a stark difference of more than €100,000 from one year to the next, while productions costs remained similar.
In 2022, average milk prices hit a record high of 60c/l, while that figure dropped back to 43c/l in 2023, a sharp 28% year-on-year decline, as seen in Figure 2.
A 32% jump in dairy production costs was seen in 2022 as a result of the Russian war on Ukraine, and these productions costs have remained relatively elevated since.
Tillage
In terms of tillage, average incomes hit a low of ¬€19,280 in 2023 and a high of €56,197 in 2021, another clear contrast over a two-year period, as seen in Figure 1.
It must be noted that the analysis of tillage incomes in the national farm survey includes farms with a secondary cattle enterprise, which can affect the overall average income.
The tillage sector is again very vulnerable to variations in world grain prices, which were lower in 2025, according to Teagasc.
In all, these fluctuations in farm income from year-to-year have proven difficult for farmers to anticipate and has increased the need to build more resilience into their production systems.
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