Incomes for suckler farms fell back in 2023 by 15%, with persistently high input costs more than offsetting an increase in scheme payments and output value.
That’s according to the Teagasc National Farm Survey 2023, the results of which were published today (Tuesday, July 23).
The results of the survey show that the average family farm income (FFI) across 14,244 cattle rearing farms (which is how suckler farms are referred to in the survey results) was €7,425, a decrease of 15% on the 2022 figure.
Only farms where suckler farming is the main activity were included in the cattle rearing part of the survey.
Average gross output on those farms increased by 6%, to €46,620, due to improved prices for younger cattle, according to Teagasc.
The output figure includes €17,137 in scheme payments per farm, which was a 10% increase in the average scheme payments to suckler farmers for 2022.
The average total scheme payment received per suckler farm was €10,500 in 2023.
However, on the inputs side, production costs for the average cattle rearing farm in 2023 were up 11% compared to the previous year, to €39,195.
This increase was mainly driven by an increase in direct costs, which were up by 20% compared to 2022. Direct costs on the average suckler farm in 2023 were €17,964, with increases across all major cost components.
Of these costs, expenditure related to farm contracting increased by 12% to €4,447, on average. Similarly, in terms of feed, the average spend on purchased concentrates increased by 11% to €4,321, with usage generally up by about 4% compared to 2022, due mainly to poor grass conditions.
In addition, purchased bulky feed costs increased by 68% to €955 on the average suckler farm in 2023.
There was, however, a further decrease in fertiliser expenditure, which was down 5% per farm to €3,337, despite a slight increase in usage.
In terms of overhead costs, these increased by about 5%, to €21,232 per farm, with most cost items increasing, including machinery depreciation. However, building depreciation decreased by 19%.
Looking at farm size, there was an increase of 6% to 34ha per farm in 2023, while the average number of livestock units (LU) increased by 8% to 37 (bovine animals account for between 0.4LU and 1LU).
The average LU/ha was 1.1, while the average margin per hectare was €848.
Around half of all cattle rearing farms in 2023 reported an average FFI of less than €5,000, while some two-thirds reported earning less than €10,000.
The number of suckler farms earning between €20,000 and €50,000 declined to 10%, while just 1% of suckler farms earned over €50,000. On 47% of suckler farms, the holder also worked off-farm last year.
After 2023, only 11% of suckler farms are deemed “viable”, down from 16% in 2022. The number of farms considered “vulnerable” in 2023 increased by six percentage points to 38%.