According to the provisional results of the Teagasc National Farm Survey, tillage farm incomes averaged €38,685 in 2024, an increase of 101% year-on-year.

A total of 6,229 growers were represented in the study.

Although utilised agricultural area (UAA) was relatively unchanged compared to 2023, total cereal area was down 4% on average.

Unfavourable weather conditions in late 2023 and early 2024 meant spring crops fared better than winter crops, with overall yields slightly better than in 2023.

As grain prices were up marginally, the increase in output value, coupled with a substantial decrease in production costs, resulted in a significant increase in margins.

Gross output was up by 3% to €158,131 on the average tillage farm in 2024. Direct payments also increased marginally by 2%, compared to 2023, at €32,420 on average.

Targeted direct payments have been significant on tillage farms in recent years. In 2024, close to one-third of tillage farmers undertook the Straw Incorporation Measure and received an average payment of €5,000.

Average production costs decreased on tillage farms in 2024 by 11%, to €119,466.

On average, direct production costs decreased by 9% year-on-year to €62,204, the largest direct cost items related to fertiliser at €15,718, which was down 40% compared to 2023.

Expenditure on seed also decreased, by a similar magnitude, to €8,628, while crop protection costs were down 14%, on average, to €10,191.

Meanwhile, contracting charges increased by 16% year-on-year to €15,777 on average.

As many tillage farms also have a significant cattle enterprise, some will incur expenditure on purchased concentrates. Spending on concentrates increased by 14% in 2024, to €5,441 on average.

Overhead costs decreased in 2024, the average increase on tillage farms being 14%, year-on-year, to €57,242.

In terms of the decrease in overhead costs on tillage farms in 2024, machinery depreciation accounted for €13,571 of expenditure, a decrease of 23% compared to 2023.

Expenditure related to hired labour also significantly reduced by 21% on average to €2,900.

The average tillage farm area remained stable in 2024 at 69ha. Of this, over half of the total land area (37ha) was dedicated to cereals, a decline of 4% compared to 2024.

The average tillage farm gross margin was €1,388/ha in 2024; this included a Pillar 1 payment of €293, which was also relatively stable when compared to 2023.

The Family Farm Income (FFI) figures across the entire tillage spectrum for 2024 are worthy to note.

Teagasc confirmed that the proportion of businesses generating incomes in excess of €50,000 is up by 19%.

A further 33% of tillage farms earned between €20,000 and €50,000, on average, in 2024. The proportion of growers earning below €5,000 in 2024 was down dramatically to 24%, from the previous years figure of 42%.