The average size and average number of cows on Irish suckler farms continued to slide in 2018 as key costs such as feed and fertiliser jumped.

The average suckler farm is now 31ha, a reduction of 5% on the previous year, according to the latest Teagasc National Farm Survey. It noted a particular drop in the amount of rented land by suckler farms.

The number of cows carried on these farms has also fallen down by 4% to 35. While stocking rates have remained steady at 1.13 cows/ha, an increase in costs has reduced gross margins to €726/ha. Direct payments (€243/ha) account for a third of this figure.

Costs

Spending on concentrate feed jumped by 12% on average to almost €4,000 as drought conditions affected farms across all sectors. Fertiliser expenditure rose by 11% to almost €2,500, driven by an increase in price but also increased usage.

These factors, along with a drop in overall output of 4%, combined to see a 22% slump in total income which stands at €8,318 for the average family suckler farm.

Those with the lowest incomes in the sector were affected the worst in 2018. The number of suckler farms earning less than €5,000 jumped by 13%. Over 40% of suckler farms are now in this bracket.

Only 1% of suckler farms earned more than €50,000 in 2018.

Finishers

Beef farmers not involved in suckling fared better than suckler farmers with an average income of €14,408, down 11% on 2017.

Categorised as "cattle other" these farms are predominately beef finishers. To compensate for an explosion in costs, these farmers were forced to ramp up their production as gross output increased by 7% to €52,687.

Total costs rose by 15% to €38,277 split almost evenly between direct costs and overhead costs.

Rental

In contrast to suckler farmers who chose to exit the rental market, beef finishers seen their conacre rental expenditure rise by 11% to €1,329. The average farm in this category increased by 6% to 37ha. The number of livestock units carried was up almost 10% to 51.

On the direct costs side, spending on purchased concentrates rose by one-third to €8,000 and spending on bulky feed rose by a similar amount to nearly €1,000.

The cost of home-grown feed also rose steeply with fertiliser and contracting charges rising by 26% and 17%, respectively, to over €3,500 each.

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Family farm incomes plunge by over 20%