Average sheep farm incomes in 2025 increased slightly due to higher output prices and lower costs, according to the final results of the National Farm Survey (NFS) from Teagasc.

According to the report published this week, sheep and lamb prices in 2025 increased by about 6% on the record levels of 2024.

Teagasc said these higher prices reflect the reduction in sheep supply across the EU.

Sheep farms

There were approximately 14,013 sheep farms represented in the NFS in 2025, having an average income of €30,503, the highest on record.

This was an 11% increase compared to 2024.

Despite a reduction in the volume of sheepmeat produced, a continued improvement in prices provided some increase in output value.

Sheep farms with a secondary cattle enterprise also benefitted from the rise in cattle prices.

Gross output on the average sheep farm was up 5% year-on year to €77,252.

Support payments increased on average year-on-year at €28,796.

Such payments remain very important on sheep farms, with continued participation in the Sheep Improvement Scheme, ACRES and the Organic Farming Scheme helping to boost sheep farm income.

A reduction in some cost items in 2025 also helped to support farm income, with total costs up by 1%, on average.

Direct costs declined by 8% on average to €22,142, while overhead costs increased by 11% to €24,607.

Family farm income

The average flock size increased by 12% to 144 ewes.

On a per hectare basis, the average gross margin on sheep farms declined slightly to €1,040.

This included pillar I payments of €267/ha and other support payments of €279/ha, on average.

Compared to 2024, the proportion of sheep farms earning a family farm income (FFI) of less than €5,000 was down 21 percentage points to 16% in 2025.

Just 8% of sheep farms reported an income of between €5,000 and €10,000 in 2025, a 9 percentage point decrease compared to 2024.

The proportion of farms earning on average FFI between €10,000 and €20,000 increased by 9 percentage points to 26%, with the proportion earning between €20,000 and €50,000 decreasing by 7 percentage points to 31%.

The proportion earning above €50,000 increased by 2 percentage points to 19%, on average.