A new report from Teagasc economists has forecast that average income on dairy farms in 2025 will reach about €140,000.
This 30% increase compared to 2024 is due to milk prices being 7% higher than last year as well as favourable weather, which should result in a 5% increase in Irish milk production and higher margins for dairy producers.
Dairy commodity prices entered 2025 at a high level and have remained strong through the first half of the year.
Meanwhile, average farm income across all systems in 2025 is now forecast to reach €48,500, representing a 39% increase on the 2024 figure.
“Agricultural input markets have been relatively stable in 2025, with only modest price changes likely for the year as a whole,” Teagasc said.
“As of mid-2025, the global economic growth outlook has weakened relative to 2024, with a number of ongoing geopolitical considerations presenting downside risk, with trade tensions and exchange rate movements creating uncertainty. Nevertheless, the outlook for farm incomes this year on most farms is now quite positive.”
Beef
Prices for finished cattle have risen sharply this year, with an increase of over 35% now in prospect relative to 2024. In addition, weanling prices have risen by approximately 45%.
While input costs have remained broadly stable, output price improvements will lead to further improvements in incomes across cattle systems.
Support payments through the ACRES and Organic Farming Schemes will continue to bolster incomes, according to Teagasc.
Average income for cattle rearing farms is forecast to be €25,000 in 2025, up 85%, while cattle other (primarily finishing) farms are expected to see incomes rise by 44% to €26,000.
Some sheep farms also have a secondary cattle enterprise and a portion of the increase in income on sheep farms will result from the improved economic performance of the cattle enterprise. \ Odhran Ducie
Sheep and pigs
Lamb prices are likely to be 8% higher in 2025 relative to last year.
With production costs slightly higher and support continuing under the Sheep Welfare Scheme, ACRES and Organic Farming Scheme, sheep farms are expected to record an average income of just under €34,000 in 2025, representing an 22% improvement on the previous year.
Some sheep farms also have a secondary cattle enterprise and a portion of the increase in income on sheep farms will result from the improved economic performance of the cattle enterprise.
For pig farmers, production volumes are projected to rise by a further 1.5% this year. However, it is expected that pig prices will decline by approximately 12c/kg, while production costs are likely to be down by just 2c/kg.
The margin over feed cost is forecast to decline by 7% in 2025, when compared to 2024, but the sector will continue to return modest profitability.
Tillage
In the tillage sector, early indications from harvest 2025 suggest that cereal prices are likely to be lower than in 2024.
The good planting conditions earlier this year should contribute to higher production volume, and, with relatively little inflation in production costs, average income on tillage farms is now forecast to increase by around 12% to €43,000.
Much of the increase in income on tillage farms will come from the subsidiary livestock enterprise, which have benefited from higher prices in 2025.
However, the forecasted income on tillage farms for 2025 is expected to be below the previous 5-year average.
Read more
Agricultural operating surplus jumps by €1.6bn in 2024
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A new report from Teagasc economists has forecast that average income on dairy farms in 2025 will reach about €140,000.
This 30% increase compared to 2024 is due to milk prices being 7% higher than last year as well as favourable weather, which should result in a 5% increase in Irish milk production and higher margins for dairy producers.
Dairy commodity prices entered 2025 at a high level and have remained strong through the first half of the year.
Meanwhile, average farm income across all systems in 2025 is now forecast to reach €48,500, representing a 39% increase on the 2024 figure.
“Agricultural input markets have been relatively stable in 2025, with only modest price changes likely for the year as a whole,” Teagasc said.
“As of mid-2025, the global economic growth outlook has weakened relative to 2024, with a number of ongoing geopolitical considerations presenting downside risk, with trade tensions and exchange rate movements creating uncertainty. Nevertheless, the outlook for farm incomes this year on most farms is now quite positive.”
Beef
Prices for finished cattle have risen sharply this year, with an increase of over 35% now in prospect relative to 2024. In addition, weanling prices have risen by approximately 45%.
While input costs have remained broadly stable, output price improvements will lead to further improvements in incomes across cattle systems.
Support payments through the ACRES and Organic Farming Schemes will continue to bolster incomes, according to Teagasc.
Average income for cattle rearing farms is forecast to be €25,000 in 2025, up 85%, while cattle other (primarily finishing) farms are expected to see incomes rise by 44% to €26,000.
Some sheep farms also have a secondary cattle enterprise and a portion of the increase in income on sheep farms will result from the improved economic performance of the cattle enterprise. \ Odhran Ducie
Sheep and pigs
Lamb prices are likely to be 8% higher in 2025 relative to last year.
With production costs slightly higher and support continuing under the Sheep Welfare Scheme, ACRES and Organic Farming Scheme, sheep farms are expected to record an average income of just under €34,000 in 2025, representing an 22% improvement on the previous year.
Some sheep farms also have a secondary cattle enterprise and a portion of the increase in income on sheep farms will result from the improved economic performance of the cattle enterprise.
For pig farmers, production volumes are projected to rise by a further 1.5% this year. However, it is expected that pig prices will decline by approximately 12c/kg, while production costs are likely to be down by just 2c/kg.
The margin over feed cost is forecast to decline by 7% in 2025, when compared to 2024, but the sector will continue to return modest profitability.
Tillage
In the tillage sector, early indications from harvest 2025 suggest that cereal prices are likely to be lower than in 2024.
The good planting conditions earlier this year should contribute to higher production volume, and, with relatively little inflation in production costs, average income on tillage farms is now forecast to increase by around 12% to €43,000.
Much of the increase in income on tillage farms will come from the subsidiary livestock enterprise, which have benefited from higher prices in 2025.
However, the forecasted income on tillage farms for 2025 is expected to be below the previous 5-year average.
Read more
Agricultural operating surplus jumps by €1.6bn in 2024
Dairy incomes more than doubled in 2024
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