According to the Teagasc National Farm Survey, family farm income averaged just under €36,000 in 2024, an increase of 87% compared to the previous year (Teagasc, 2025). Incomes across all the main farm enterprises increased in 2024, coming from a very low base in 2023. Family farm income on dairy farms increased by 113%, supported by higher milk prices and favourable grass growth which boosted milk quality and yield (Teagasc, Agriculture and Food Development Authority, 2025). Favourable weather at planting through to harvest resulted in better establishment, growth and quality of crops in 2024, and tillage farmers saw an average increase of 101% compared to 2023 (Teagasc, 2025).
Looking ahead, Teagasc economists predict another positive year for farm incomes in 2025, with a forecasted average family farm income of €48,500, up 39% on last year’s figure (Teagasc, 2024). Lower input prices, higher output prices and excellent spring weather have strengthened prospects across all major farming systems.
But as every farmer knows, the bad years are unavoidable. Operational unpredictability means that managing finances through both the highs and lows is critical to survival, and success. It is crucial that farmers manage income volatility fluctuations to ensure long-term production and economic resilience.
Keeping cashflow in check
While some farmers fund machinery and infrastructure directly from cashflow, this is rarely advisable.
Farming is cyclical. While expenses are spread throughout the year, income often arrives in lump sums, making cashflow budgeting essential. A separate farm and household account is important for good cash management. A standing order should be set up from the farm account to the non-farm account to cover household expenses.
Tracking income and expenditure allows farmers to understand their true cost of production, highlighting where savings can be made. Farm management tools like AIB’s Agri Cashflow Planner can simplify monitoring and planning, making it easier to monitor cashflow and identify seasonal gaps.
When income dips – which it inevitably will – non-essential spending should be minimised, living expenses prioritised, and budgets should be reviewed so that they are in line with current conditions. Cash flow can be increased by selling stock, silage or hay to provide short term liquidity. Financial repayments may require restructuring, and consultation with a financial advisor is crucial for managing tax obligations.
Flexible options like AIB’s Farmer Credit Line provide access to working capital during tight periods, allowing farmers to pay bills on time and avoid long-term financial strain.
Planning for strong income years
The decisions made in strong years will determine how resilient a farm business is when the cycle turns. Periods of strong income provide an opportunity to strengthen financial resilience.
When income is strong, this is the ideal time to develop a buffer fund to deal with unexpected challenges, without disrupting overall cashflow. This can act as a cushion in downturns or emergencies and will help in weathering the hard years. In addition, during periods of high income, some farmers on variable interest rate schedules may decide to make repayments ahead of schedule or over the agreed annual contracted amount. This has been a feature of the sector over the past number of years with the industry now having the lowest level of on farm debt in 25 years (Teagasc | Agriculture and Food Development Authority, 2025).
With Teagasc forecasting strong incomes in 2025, careful tax planning is more important than ever to maximise reliefs and exemptions and avoid unnecessary liabilities. Farmers can significantly lower their tax bill by making full use of available tax credits, reliefs and exemptions. Engaging with an accountant and drawing on advice from AIB’s Agri Advisory Team can ensure farmers maximise the benefits.
While some farmers fund machinery and infrastructure directly from cashflow, this is rarely advisable. Major purchases should be financed strategically. AIB’s Farm Development Loans provide long-term funding for land, buildings, or machinery, with flexible repayment terms to match farm cashflow.
Staying informed
Resilience also comes from knowledge. Staying on top of legislation, tax reforms, market trends, and Government supports ensures farmers can make timely, well-informed financial decisions. Anticipating change allows for adaptation before challenges become an issue.
The bigger picture
At times, farming can feel like a struggle for survival. But with strategic planning, disciplined budgeting, and effective tax management, farmers can reduce the impact of a downturn on their business. By preparing in good times and protecting against downturns, farmers ensure not just survival, but a stronger, more sustainable future.
That’s where the right financial partner makes a difference. AIB has long supported Irish farmers, offering practical tools like the Agri Cashflow Planner, flexible facilities such as the Farmer Credit Line, and long-term investment options through Farm Development Loans or its recently launched Business Sustainability Loan for Agri customers. Their Agri Advisory Team brings expertise and guidance to help farmers plan ahead, manage risk, and make the most of strong years. With trusted advice and tailored financial solutions, AIB helps farmers weather the highs and lows, building resilience not just for today, but for the next generation of Irish farming.
Lending criteria, terms and conditions apply. Credit facilities are subject to repayment capacity and financial status and are not available to persons under 18 years of age. Security may be required.
Allied Irish Banks, p.l.c. is regulated by the Central Bank of Ireland.
(Teagasc, 2025) Preliminary Results – Teagasc National Farm Survey 2024. Johnstown Castle, Wexford: Teagasc. Available at: https://teagasc.ie/wp-content/uploads/uploads/NFS-Preliminary-Report-2024.pdf
Teagasc | Agriculture and Food Development Authority. (2025). Teagasc confirms rebound in farm incomes across all systems in 2024 - Teagasc | Agriculture and Food Development Authority. Available at: https://teagasc.ie/news--events/news/teagasc-confirms-rebound-in-farm-incomes-across-all-systems-in-2024
Teagasc (2025) Preliminary Results – Teagasc National Farm Survey 2024. Johnstown Castle, Wexford: Teagasc. Available at: https://teagasc.ie/news--events/news/teagasc-confirms-rebound-in-farm-incomes-across-all-systems-in-2024/
Teagasc (2024) Outlook 2025: Economic Prospects for Agriculture. Johnstown Castle, Wexford: Teagasc. Available at: https://teagasc.ie/wp-content/uploads/media/website/publications/2024/Outlook-2025-Final.pdf
Teagasc | Agriculture and Food Development Authority (2025). Teagasc confirms rebound in farm incomes across all systems in 2024 - Teagasc | Agriculture and Food Development Authority. Available at: https://teagasc.ie/news--events/news/teagasc-confirms-rebound-in-farm-incomes-across-all-systems-in-2024
According to the Teagasc National Farm Survey, family farm income averaged just under €36,000 in 2024, an increase of 87% compared to the previous year (Teagasc, 2025). Incomes across all the main farm enterprises increased in 2024, coming from a very low base in 2023. Family farm income on dairy farms increased by 113%, supported by higher milk prices and favourable grass growth which boosted milk quality and yield (Teagasc, Agriculture and Food Development Authority, 2025). Favourable weather at planting through to harvest resulted in better establishment, growth and quality of crops in 2024, and tillage farmers saw an average increase of 101% compared to 2023 (Teagasc, 2025).
Looking ahead, Teagasc economists predict another positive year for farm incomes in 2025, with a forecasted average family farm income of €48,500, up 39% on last year’s figure (Teagasc, 2024). Lower input prices, higher output prices and excellent spring weather have strengthened prospects across all major farming systems.
But as every farmer knows, the bad years are unavoidable. Operational unpredictability means that managing finances through both the highs and lows is critical to survival, and success. It is crucial that farmers manage income volatility fluctuations to ensure long-term production and economic resilience.
Keeping cashflow in check
While some farmers fund machinery and infrastructure directly from cashflow, this is rarely advisable.
Farming is cyclical. While expenses are spread throughout the year, income often arrives in lump sums, making cashflow budgeting essential. A separate farm and household account is important for good cash management. A standing order should be set up from the farm account to the non-farm account to cover household expenses.
Tracking income and expenditure allows farmers to understand their true cost of production, highlighting where savings can be made. Farm management tools like AIB’s Agri Cashflow Planner can simplify monitoring and planning, making it easier to monitor cashflow and identify seasonal gaps.
When income dips – which it inevitably will – non-essential spending should be minimised, living expenses prioritised, and budgets should be reviewed so that they are in line with current conditions. Cash flow can be increased by selling stock, silage or hay to provide short term liquidity. Financial repayments may require restructuring, and consultation with a financial advisor is crucial for managing tax obligations.
Flexible options like AIB’s Farmer Credit Line provide access to working capital during tight periods, allowing farmers to pay bills on time and avoid long-term financial strain.
Planning for strong income years
The decisions made in strong years will determine how resilient a farm business is when the cycle turns. Periods of strong income provide an opportunity to strengthen financial resilience.
When income is strong, this is the ideal time to develop a buffer fund to deal with unexpected challenges, without disrupting overall cashflow. This can act as a cushion in downturns or emergencies and will help in weathering the hard years. In addition, during periods of high income, some farmers on variable interest rate schedules may decide to make repayments ahead of schedule or over the agreed annual contracted amount. This has been a feature of the sector over the past number of years with the industry now having the lowest level of on farm debt in 25 years (Teagasc | Agriculture and Food Development Authority, 2025).
With Teagasc forecasting strong incomes in 2025, careful tax planning is more important than ever to maximise reliefs and exemptions and avoid unnecessary liabilities. Farmers can significantly lower their tax bill by making full use of available tax credits, reliefs and exemptions. Engaging with an accountant and drawing on advice from AIB’s Agri Advisory Team can ensure farmers maximise the benefits.
While some farmers fund machinery and infrastructure directly from cashflow, this is rarely advisable. Major purchases should be financed strategically. AIB’s Farm Development Loans provide long-term funding for land, buildings, or machinery, with flexible repayment terms to match farm cashflow.
Staying informed
Resilience also comes from knowledge. Staying on top of legislation, tax reforms, market trends, and Government supports ensures farmers can make timely, well-informed financial decisions. Anticipating change allows for adaptation before challenges become an issue.
The bigger picture
At times, farming can feel like a struggle for survival. But with strategic planning, disciplined budgeting, and effective tax management, farmers can reduce the impact of a downturn on their business. By preparing in good times and protecting against downturns, farmers ensure not just survival, but a stronger, more sustainable future.
That’s where the right financial partner makes a difference. AIB has long supported Irish farmers, offering practical tools like the Agri Cashflow Planner, flexible facilities such as the Farmer Credit Line, and long-term investment options through Farm Development Loans or its recently launched Business Sustainability Loan for Agri customers. Their Agri Advisory Team brings expertise and guidance to help farmers plan ahead, manage risk, and make the most of strong years. With trusted advice and tailored financial solutions, AIB helps farmers weather the highs and lows, building resilience not just for today, but for the next generation of Irish farming.
Lending criteria, terms and conditions apply. Credit facilities are subject to repayment capacity and financial status and are not available to persons under 18 years of age. Security may be required.
Allied Irish Banks, p.l.c. is regulated by the Central Bank of Ireland.
(Teagasc, 2025) Preliminary Results – Teagasc National Farm Survey 2024. Johnstown Castle, Wexford: Teagasc. Available at: https://teagasc.ie/wp-content/uploads/uploads/NFS-Preliminary-Report-2024.pdf
Teagasc | Agriculture and Food Development Authority. (2025). Teagasc confirms rebound in farm incomes across all systems in 2024 - Teagasc | Agriculture and Food Development Authority. Available at: https://teagasc.ie/news--events/news/teagasc-confirms-rebound-in-farm-incomes-across-all-systems-in-2024
Teagasc (2025) Preliminary Results – Teagasc National Farm Survey 2024. Johnstown Castle, Wexford: Teagasc. Available at: https://teagasc.ie/news--events/news/teagasc-confirms-rebound-in-farm-incomes-across-all-systems-in-2024/
Teagasc (2024) Outlook 2025: Economic Prospects for Agriculture. Johnstown Castle, Wexford: Teagasc. Available at: https://teagasc.ie/wp-content/uploads/media/website/publications/2024/Outlook-2025-Final.pdf
Teagasc | Agriculture and Food Development Authority (2025). Teagasc confirms rebound in farm incomes across all systems in 2024 - Teagasc | Agriculture and Food Development Authority. Available at: https://teagasc.ie/news--events/news/teagasc-confirms-rebound-in-farm-incomes-across-all-systems-in-2024
SHARING OPTIONS