The average income on dairy farms will top €130,000 this year, Teagasc has predicted.

This represents a 20% increase on the €108,000 average recorded in the National Farm Survey (NFS) for 2024.

Suckler farmer incomes are also set for a dramatic lift, with Teagasc estimating that average incomes could top €20,000 in 2025, up from €13,550 in 2024.

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While the official NFS estimates for 2025 are not due to be released until early December, Teagasc’s Trevor Donnellan described the outcome for dairy farmer incomes this year as very positive despite recent milk price cuts.

Some in the dairy sector have forecast that average dairy incomes this year could surpass the €157,000 recorded in 2022, but Donnellan contended that it was too early to say that this was the case.

“I’d be confident that dairy farmer incomes this year will be north of €130,000,” said Donnellan, who is head of Teagasc’s agricultural economics and farm surveys department.

How far above the €130,000 threshold average dairy incomes finally settle will depend on how much milk is supplied through the back end of the year, he maintained.

Donnellan attributed the bounce in dairy incomes to the strong milk prices paid through the first half of the year, the sizeable increase in milk volumes and significantly higher calf prices.

Although he accepted that overall costs might be up marginally on dairy farms when compared to 2024, Donnellan pointed out that the increased milk output this year – which is likely to be around 5% nationally - means that the cost per litre of milk produced will be reduced on most farms.

Rise in suckler incomes

Meanwhile, Teagasc’s Kevin Hanrahan predicted that suckler farmer incomes could increase by as much as 50% this year compared to 2024 and surpass €20,000.

Hanrahan, who is head of Teagasc’s rural economy programme, pointed out that cattle prices are around 40% higher this year, while inflation in the cost of inputs and other expenses has been kept to low single digit levels.

The trade for weanlings has been particularly buoyant this year, with exporters competing strongly for top quality stock.

Irish Farmers Journal Martbids data shows that top quality weanling bulls averaged €6.77/kg last week, with heifers averaging €6.47/kg.

Super-elevated

“We have still to do the analysis but prices remain at super-elevated levels and that will be reflected in very strong incomes,” Hanrahan said.

In contrast to the strong income forecasts for the dairy and drystock sectors, tillage farmer incomes are likely to remain under pressure. A review of incomes from 2025 and the outlook for 2026 will be outlined at the Teagasc outlook conference in Ashtown on 2 December.