More than a quarter of farmers are very concerned about farm profitability in 2023, the latest Irish Farmers Journal survey has revealed.

Only 6% expressed no concern about profitability, with 52%, more than half, either moderately or very concerned. Sheep and beef farmers expressed most concern, with dairy farmers less worried.

Only 13% of farmers think their income will increase this year, while 51% expect incomes to fall. Eleven per cent anticipate a punishing drop in income of more than 20%.

However, when asked about their overall outlook for the year ahead, more farmers expressed optimism than pessimism. Some 43% of farmers are positive for 2023, with 4% of them very positive.

Little more than a quarter (27%) are negative about 2023, with 3% of those being very negative.

Dairy farmers are the most positive, with sheep farmers the least positive.

Input costs and energy prices rank higher than output prices as the challenge identified by farmers.

Fears about input costs rank highest across all farm sectors, with 74% of dairy farmers and 81% of beef farmers listing it as an issue. Unsurprisingly, dairy farmers most strongly identify energy costs as a challenge, with two-thirds of them listing it, compared to around half of drystock and tillage farmers.

The geographical breakdown of farmers in terms of their expectations shows Connacht farmers expressing most concern about farm profitability.

Ulster farmers most strongly expect their incomes to fall, followed by Leinster farmers. Why do these two figures not correlate? Probably because Connacht farmers have lower incomes to begin with, and farm profitability is on more of a knife edge.