The average farm income on sheep farms in 2021 increased by 16% relative to 2020 and amounted to €20,794, final figures from the Teagasc National Farm Survey for 2021 have revealed.

The overall gross output on sheep farms increased by 16% to €61,164 – driven by a strong improvement in prices due to better market conditions and increased opportunities for Irish lamb exports.

There were 13,979 sheep farms represented in the survey.

Looking at the distribution of incomes on sheep farms, the proportion earning a family farm income (FFI) of less than €5,000 increased by 4% in 2021 to 26%.

14% reported a sheep farm income of between €5,000 and €10,000 in 2021, which represents a 9% decrease on the previous year.

And, almost one quarter reported a sheep farm income of between €10,000 and €20,000 in 2021, a 4% increase from 2020.

Meanwhile, the proportion of farmers earning between €20,000 and €50,000 fell by 4% to 26%, while those earning above €50,000 increased by 5%.

Distribution of Sheep FFI 2019 – 2021. Source: Teagasc

Direct payments reamined stable to €18,768, on average, on sheep farms in 2021.

Payments through Green Low-Carbon Agri-Environment Scheme (GLAS) and the Areas of Natural Constraint (ANC) remained important on the average sheep farm in 2021.

In the main, participation in the Sheep Welfare Scheme resulted in a payment of approximately over €1,000 on sheep farms in 2021.

An increase in production costs was also seen on sheep farms in 2021. Direct costs rose by 15% to a farm average of €21,036, while overhead costs increased by 17%, compared to 2020, and came to €19,334.

Concentrate feed costs increased by 15% to €7,530, while expenditure on bulky feed also increased to €1,517.

Sheep farm indicators 2021. Source: Teagasc

Fertiliser expenditure also increased by 19% to €3,177, on average. Furthermore, contracting charges and veterinary and livestock costs rose by 8% each to €2,646 and €3,562 respectively.

Like other farm systems, an increase in depreciation cost was also seen. Machinery depreciation rose by 28% on average.

On a per-hectare basis, the average gross margin on sheep farms was €900. This included a basic payment of €254, on average.

In 2021, the average-sized sheep farm was 45ha, while the average flock size increased by 8% to 140.