The average income on sheep farms in Ireland has decreased by 21% within one year to an average of €16,454, the Teagasc National Farm Survey 2022 has shown.
The survey, representative of approximately 13,979 sheep farmers, shows that gross output on the average sheep farm increased marginally by 9% to €66,423 last year.
This rise was driven by a strong improvement in prices due to better market conditions and increased opportunities for Irish lamb exports, according to the survey.
Family farm income
The proportion of sheep farms earning a family farm income (FFI) of less than €5,000 increased dramatically by 16% to more than four in 10 farms (42%) in 2022, compared to 2021.
In total 11% of sheep farms reported an income of between €5,000 and €10,000 in 2022, a 3% decline when compared to the previous year, the survey shows.
The proportion of farms earning on average between €10,000 and €20,000 declined by 6% to 18%, with the proportion earning between €20,000 and €50,000 down by 4% to 21%.
There was a 4% decline in the proportion of sheep farmers earning above €50,000, comprising just 7% of farms in 2022 on average.
The components of the average sheep FFI in 2022 are as follows:
2022 (€) 2022/2021 change (%) Gross output
of which direct payments66,423
18,092+9
-4Total costs
of which direct costs
of which overheads49,969
25,604
24,365+24
+22
+26FFI 16,454 -21
Payments through the Green Low-carbon Agri-environment Scheme (GLAS), and the Areas of Natural Constraint (ANC) remained important on the average sheep farm in 2022.
Participation in the Sheep Welfare Scheme was significant, with an average payment of close to €1,800. The Fodder Support Scheme resulted in an average payment of close to €1,000.
Sheep farm indicators 2022:
2022 2022/2021 change Farm size (ha) 45 +1% Number of ewes 142 +2% Livestock units (lu/ha) 1.22 -2% Basic payment (€/ha) 251 -1% Gross margin (€/ha) 909 +1%
The utilised agricultural area (UAA) per farm remained relatively stable at 45ha on average, while the average flock size increased only slightly at 2% to 142 ewes.
On a per hectare basis, the average gross margin on sheep farms was €909 last year, which included a basic payment of €251 on average, the survey shows.
Costs on sheep farms
Direct costs were up by 22% to an average of €25,604. The largest component of direct costs, expenditure on concentrate feed, rose by 27% to €9,575.
The volume of concentrate used on sheep farms rose by 15% last year. Expenditure on purchased bulky feed also increased by the same magnitude to €1,934.
Fertiliser expenditure on the average sheep farm increased by 53% year-on-year to €4,867, although nitrogen use was down close to one-third in line with the cattle systems.
Expenditure on contracting increased by 34% to €3,541, with expenditure on veterinary and livestock costs relatively unchanged at €3,638. Other direct costs were up by 9% to €1,939.
On average the overhead costs on sheep farms rose by 26% to €24,365 last year. Depreciation costs were an important factor in the increase.
Machinery depreciation was up by 60% on average to €4,478, while average building depreciation rose by 44% to €3,349, the survey shows.
The average machinery operating costs increased by 22% to €3,517, with fuel up 43% to €1,628. Expenditure relating to car, electricity and phone was up 22% to €4,114.
Spending on land improvement was up by 8% to €1,204. Rent of conacre remained unchanged at €2,068, while other overhead costs accounted for €2,903 of the total, up 7% year-on-year.