Irish tillage incomes rose by 31% in 2022, relative to the year previous, according to the finalised Teagasc National Farm Survey data.
A total of 6,246 tillage farms were represented in the analysis, earning an average income of €76,013 – up 31% year-on-year.
Favourable weather conditions, and an increase in cereal area in 2022, resulted in an increase in cereal production volumes in aggregate.
Cereal prices were high due to relatively low international stocks, adverse weather in key production regions, and reduced availability due to Russia’s invasion of Ukraine.
While production costs were also higher in 2022, the increase in output value resulted in an increase in margins on the average tillage farm.
Gross output increased by 30% to €207,541 on the average tillage farm in 2022. Direct payments increased by 8%, compared to 2021.
While the number of participants was small, the average payments received through the Straw Incorporation Measure (SIM), and Protein Aid Scheme were significant, at close to €4,500 and more than €3,700 on average.
Similarly, the average payment received through the Tillage Incentive Scheme (TIS) was just over €1,600.
Cost affecting tillage incomes
Overall, average costs increased on tillage farms in 2022 by 30%, to €131,527.
Direct costs increased by 38% year-on-year, with an increase in fertiliser expenditure alone of 108% to €28,495 on the average tillage farm.
Expenditure on crop protection increased by 15% to €11,215, with purchased seed also up by 22%, to €6,540. Expenditure on contracting charges also increased by 38% year-on-year to €13,268, on average.
As many tillage farms also have a significant cattle enterprise, some will incur expenditure on purchased concentrates.
However, the data indicates that spending on concentrates decreased on tillage farms in 2022, to €4,088.
Overhead costs on tillage farms increased in 2022, by an average of 22% year-on-year. The average increase in machinery depreciation was 34%, to €15,909 and machinery operating costs also rose by 22% to €13,764.
In terms of some other overhead sub-components, conacre rental costs were up 45% in 2022 to €10,569. Expenditure on fuel also increased to €7,171, up 39%.
Building depreciation increased by 44% to €4,601. Car, electricity and phone expenditure was also up 4% to €4,709.
Buildings maintenance costs increased to €1,955, up strongly year-on-year, while land improvement maintenance was down by 4% to €1,771.
Other overhead costs remained relatively stable, year-on-year, at €5,242.