Teagasc has announced its finalised National Farm Survey (NFS) results for 2021, with 15,319 dairy farms represented and an average family farm income (FFI) of €98,745.
This is a 25%increase year-on-year and €1,746 ahead of the provisional survey published in June 2022.
According to Teagasc, the increase in FFI was driven by a number of factors, including generally reasonable growing conditions, increased milk production, and a sharp rise in milk price (to 40c/L by actual fat and protein).
Family farm income
Although returns on farms reached new highs, it was marred by increases in input expenditure, due to higher prices for feed, fertiliser and fuel in particular.
Notably, on an average dairy farm with a herd size of 92 cows, purchased concentrate expenditure totalled €45,790 in 2021, a 15% increase relative to 2020.
It was also noted that the cost of purchased bulky or silage feed increased by 4% on average in 2021.
Fertiliser prices in 2021 increased significantly, with an average increase of 8%.
However, data from the survey confirms relatively high levels of fertiliser in stock on farms at the end of 2020, which was subsequently utilised in 2021.
Machinery hire (contracting) expenditure increased by 2% on average to €13,204, with other livestock and veterinary costs also increasing (by 9%) to €14,163 for the average dairy farm.
Milk output
Gross output in 2021 increased on average by 17% compared to 2020, with an average 12% increase in the cost of production.
Milk production reached 12,155L/ha in 2021, an increase of 3% on 2020.
Due to the good milk prices, gross output per hectare increased significantly in 2021, to €4,978 on average.
Although direct cost increased by 8% in 2021, average gross margin per hectare increased to €3,181.
Regional
Looking at dairy farms on a regional basis, the vast majority, with 72%, are located in the south.
The remainder are evenly spread across the other two regions, with 14% located in the north and west and 14% in the east and midlands.
But the dairy farms located in the east and midlands are larger in size compared to those located in the south.
But interestingly, dairy incomes were highest in the southern region, with an average income of €1,611/ha.
The comparative figures for the east and midlands, and north and west, were €1,410/ha, and €1,394/ha respectively.
The farms in the east and midlands had higher direct costs per hectare, compared to those in the north and west.
The lowest direct costs per cow were in the south, with an average direct cost of €1,135/ha.
Concentrate feed use was, on average, 1,444kg/cow in the north and west in 2021, compared to 1,240kg/cow, and 1,072kg/cow in the east and midlands, and south, respectively.
The average incomes per cow was strongest in the southern region, with an average of €1,611/cow. This is €201/cow higher than in the east and midlands region, and almost €217/cow higher than in the north and west region.