Dairy farmers are forecast to be top of the income league table next year with an average family farm income of €86,000 according to a new report from Teagasc.
But there is likely to be a stark contrast this year for dairy farmers, with no soft landing expected following the sharp decline in milk prices over the last 12 months.
Latest estimates from Teagasc suggest that dairy farm income will be down 60% which could bring the average dairy farm income in 2023 to around €59,000.
This, together with a poor harvest in 2023, is likely according to economists, to drag down the overall average farm income in 2023, by 44% to just under €24,800.
The Irish Farmers’ Association (IFA) today (Tuesday, November 28) warned a drop of this magnitude in farm incomes “was a huge concern”.
Tim Cullinan, president of the IFA, said: “Farmers’ cost of living as well as their cost of doing business has increased, yet their incomes have fallen by 44%.
“If we don’t have farmers, we don’t have food. This should be a wake-up call for the government which keeps heaping extra regulation on farmers which increases their costs and impacts hugely on farmer morale.”
Dairy farmers
However next year is likely to bring a reversal in fortunes for dairy farmers according to latest forecasts which predict that milk prices are likely to rise in 2024 by 10%.
This will then boost dairy farm income in 2024 to €86,000 – a 46% increase on the estimated income level for this year.
According to Teagasc the average farm income in 2024, is also likely to see a knock on increase of 30% to bring it to €32,200.
Trevor Donnellan, head of economics at Teagasc, today highlighted that output prices for milk, cattle, cereals and sheep are forecast to rise next year but will likely fall for pigs, while total costs will also fall slightly and support payments will largely replicate 2023 levels.
Overall this will deliver an increase in average farm income which will be “heavily driven by recovery in milk price”.
