Teagasc's Cereals Enterprise FactSheet contains a breakdown of the physical outputs and financial margins generated on tillage farms in 2024.

The data used to generate these performance figures was sourced from the National Farm Survey (NFS).

They are a key indicator of the benchmarking trends that can be discerned within the tillage sector.

The 2024 NFS recorded data from around 88,000 farms in Ireland.

Teagasc’s Cereals Enterprise FactSheet summarises the results for the major grain-growing enterprises (winter wheat and spring barley) on farms within the survey.

In terms of representation for the following analysis, in 2024, there were 86 farms with a spring barley enterprise, representing approximately 80,392ha, and 34 farms with a winter wheat enterprise, representing approximately 34,132ha.

All farms with a cereal enterprise were included in the analysis for 2024.

In previous years, certain size restrictions were applied to this analysis, but due to sample size issues, it was decided to not apply size restrictions to the analysis for 2024 results.

Analysis of financial performance

In general, the yields per hectare achieved in 2024 compared to 2023 were mixed.

Cereal yields based on the NFS enterprise results across all farms for spring barley were up significantly, by 7%, while winter wheat yields decreased by 7%.

In addition to the change in yields recorded, there was also volatility in cereal prices recorded between years and between crops in the data.

The price received at farm gate was up by 7% for spring barley, whilst it was down by 11% for winter wheat.

The combined effect of the aforementioned factors resulted in a large increase in gross output for spring barley and a slight decrease in winter wheat, of plus 21% and minus 1% respectively, in 2024 compared to 2023.

Direct costs fell throughout the year, but timing of purchase continued to have an impact on the change in total direct costs on a year-on-year basis, with direct costs decreasing by 10% for spring barley and 16% for winter wheat in 2024.

Allocated fixed costs decreased for spring barley and winter wheat, by 10%.

Some of the change in the fixed costs allocated to the cereal crops is associated with the method in which such costs are allocated across enterprises.

This allocation across each enterprise is based on the proportion of gross output.

Given the change in output value, direct and fixed costs, the net margin on spring barley farms in 2024 was €174/ha, up from minus €214/ha in 2023.

The net margin for the winter wheat in 2024 was €364/ha, up from €67/ha in 2023 (excluding decoupled payments).

Variations in financial performance

Teagasc analysis shows that total costs of production per hectare in the top performing spring barley group were 38% lower than the bottom performing spring barley producers.

Gross output per hectare for the top half of spring barley farms was 25% higher than the bottom half.

Overall, this results in over €800/ha difference in net margin between the bottom and top performing spring barley farms.

Also in 2024, 36% of spring barley farms and 13% winter wheat farms (represented by the sample) produced a negative net margin.

In other words, they made a loss when allocated overhead costs were deducted from gross margins.

Land ownership

At the opposite end of the distribution, 14% of spring barley farms and 37% of winter wheat farms earned a net margin of €750 or more in 2024.

The analysis generated from the National Farm Survey takes in all options in regard to land ownership and rental levels.

Over recent years, land rental changes have increased consistently to currently average €220-€250/ha.  

Moreover, Irish tillage farmers are more likely to have a higher proportion of rented land within their enterprise than would have previously been the case.

Teagasc economists are currently researching this specific issue.

It is clear that poorer performing farms on a net margin basis are paying more in terms of land rental on a per hectare basis

But in statistical terms, when all other controls are factored in, not much difference can be observed.

Benchmarking

The publication of the Cereal Enterprise FactSheet for 2024 has added significant momentum to the debate on the need to further encourage benchmarking within Ireland’s tillage sector.

Most tillage farmers keep some record regarding crop performance.

But very few take the next step of bringing these figures through in order to calculate accurate margins for their various cropping enterprises.

Once this level of detail has been achieved, it is a case of comparing individual farm performance figures with others.