Sheep and lamb prices in 2025 increased by about 6% on the record levels of 2024, while farm income rose by 7%.

This is according to the preliminary results of Teagasc's National Farm Survey (NFS) for last year.

The survey found that higher prices reflect the reduction in sheep supply across the EU.

There were approximately 14,012 sheep farms represented in the NFS in 2025, having an average income of €29,344, which the survey found to be “the highest on record”.

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

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

Gross output on the average sheep farm was up 1% year-on-year to €74,615.

Support payments remained stable on average year-on-year at €27,779.

Such payments were described as "very important" on sheep farms, with continued participation in the Sheep Improvement Scheme, Agri-Climate Rural Environment Scheme (ACRES), and the Organic Farming Scheme helping to boost sheep farm income.

Production costs

Some reduction in production costs in 2025 also helped to support farm income, with total costs down by 2% on average.

The survey found that direct costs declined by 9% on average to €21,876 while overhead costs increased by 5% to €23,396.

In terms of direct costs, the largest component, expenditure on concentrate feed, decreased by 15% to €8,295 on average.

On the average sheep farm, the volume of concentrates used decreased year-on-year, with expenditure on purchased bulky feed down significantly to €819.

Fertiliser expenditure on the average sheep farm decreased by 9% compared to 2024, to €2,598 on average, with the volume of nitrogen-based fertiliser used down last year.

Overhead costs

Looking at machinery depreciation, that decreased by 16% on average, to €2,520, while average building depreciation increased by 11% to €1,540.

Costs relating to land improvement depreciation also increased. Machinery operating costs remained relatively stable on average (up 1%) to €3,717. Land improvement costs increased by 21% to €1,812.

Expenditure relating to car, electricity and phone increased, by 4% to €3,941, on average. Spending on fuel declined by 12% to €1,390 on average, with land rental costs down 8% to €2,538.

Other overhead costs accounted for €3,628 of the total, up 11 % year-on-year, on average.

Farm and flock sizes

Utilised agricultural area (UAA) on sheep farms increased by 8% in 2025 to 53ha.

The average flock size decreased by 5% to 128 ewes.

On a per hectare basis, the average gross margin on sheep farms declined slightly to €999/ha. This included a Pillar I payments of €267/ha and other support payments of €267/ha, on average.

Compared to 2024, the proportion of sheep farms earning an FFI of less than €5,000 was down 22 percentage points to 15% in 2025.

Just 8% of sheep farms reported an income of between €5,000 and €10,000 in 2025, a nine 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 increasing by two percentage points to 36%.

The proportion earning above €50,000 increased by one percentage point to 18%, on average.