Incomes on suckler farms are expected to rise in 2024, according to Teagasc's situation and outlook report, which was published on Tuesday 30 July.

The average gross margin for suckler enterprises is forecast to increase by 10% to €560/ha in 2024, the report shows.

Meanwhile, the average net margin per hectare on suckler farms is forecast to reach breakeven point in 2024.

The main drivers of this lift in income, according to Teagasc, are better cattle prices and slightly reduced production costs.

On beef finishing enterprises, Teagasc has said that the outlook is for slight improvements in income on 2023 levels.

The average gross margin is forecast to increase by 5% to €680/ha in 2024.

An average net margin per hectare of approximately €60 is forecast.

Dairy

Dairy farms should also experience an increase in incomes in 2024 compared with 2023, according to Teagasc.

An average dairy margin of 10c/l to 11c/l is likely, which would represent a 3c/l to 4c/l increase on the average for 2023.

This average net margin would translate into an average family farm income (FFI) level of close to €70,000 in 2024, an increase of over 50% compared with 2023.

Milk prices will be higher, perhaps by as much as 7% compared with last year, Teagasc maintains.

However, while the price of purchased inputs has fallen, usage levels for feed and fertiliser may be higher due to poor grass production conditions.

Milk supply

Irish milk production volume in 2024 is currently running 6% below the 2023 level, mainly due to the late start to the grazing season.

Some of this production deficit should be overcome over the rest of the season, Teagasc maintained, particularly if cows are not dried off early, as they were in 2023.

Nevertheless, Irish milk production for the full year is still likely to be below the 2023 level.

Sheep

Sheep farm incomes are forecast to increase to an average of €15,500 in 2024.

Sheep and lamb prices will be higher in 2024 than in 2023, reflecting tighter supply conditions within the EU.

The improvement in output prices, along with a decrease in costs, will support higher margins. The expectation is that, for the year as a whole, sheepmeat prices will be up to 10% higher than in 2023.

Tillage sector facing 'challenge'

Tillage farms are facing another challenging year in 2024, according to Teagasc.

Average tillage farm income in 2024 will likely remain in the low-€20,000s on a whole-farm basis.

The late planting of crops in the autumn/winter period of 2023 and resultant shift to spring crops are likely to reduce yields in Ireland this year.

Furthermore, on account harvest prices for the main cereals, at the moment they are currently trading at lower levels than prices paid at harvest 2023.

While there is likely to have been some respite in costs of production on a whole-farm basis due to lower fertiliser and seed expenditure, these cost savings are not expected to translate to a positive story in whole-farm income levels.

Pigs

Irish pig production is forecast to remain profitable in 2024 after a few very difficult years.

Since spring 2023, feed and energy costs have reduced and pig prices have increased, with a resultant return to sector profitability.