The sheep sector saw another rise in income of 8% in 2017, bringing it to €37,158. This is down to a 2% increase in lamb prices, the introduction of the Sheep Welfare Scheme in 2017 and the 4% reduction in total production costs, on average.

In terms of viability, sheep farming is the most vulnerable sector. Forty-two per cent of sheep farmers are vulnerable, compared to 9% of tillage farmers or 37% of cattle producers. Just over one-fifth of sheep traders are said to be viable.

The value of direct payments for sheep farmers was 113%, meaning the sheep- and cattle-rearing sectors are the most reliant of all farming industries on direct payments.

Sheep farms continue to be low-stocked, with only about 1LU/ha compared to 1.35/LU on cattle non-rearing.

In recent times, over 60% of sheep farmers are receiving incomes of between €10,000 and €50,000, this is a grand percentage in comparison to the 2015 Farm Survey results where the slight majority (27%) of farmers were earning between €5,000 and €10,000.

On a per-hectare basis (average sheep farm size being 52ha), the gross margin on sheep farms in 2017 was €632. This included a Basic Payment of €228.

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Farm survey 2017: Increased output offset by increase in costs on suckler farms