Who had the top farm income in 2025 - dairy or beef farmers?
Dairy farmers saw an average 26% jump in their annual income to €137,000 during 2025 according to a new report published by Teagasc today (Tuesday, December 2).
Economists estimate that the average farm income in 2025 jumped by 33% to almost €49,400 - driven primarily by “the increase in beef related income on both dairy and drystock farms”.
Despite the sharp drop in milk prices in recent months dairy farmers did see higher milk prices for a good part of the year and this combined with strong prices for cull cows and surplus calves, delivered the best incomes for them this year.
According to economists the typical dairy net margin should “be about 21c/L in 2025” which represents an increase of about 4c/L on the 2024 average.
In general, the Teagasc review of 2025 highlights that “favourable weather and generally positive market price developments” delivered strong returns for farmers this year.
Although there were periods of drought conditions in some parts of the country and heavy rain at certain times of the year, economists pointed to the mainly “favourable grass growth conditions” which have been a feature of 2025.
This in particular delivered a welcome boost to tillage farms and as a result, cereal production in 2025 “was in line with the five-year average, but considerably up on the 2024 level” according to Teagasc economists.
The average income on a tillage farm in 2025 was estimated to be in the region of €47,200 -which represents an increase of 14% relative to 2024.
Cattle
When it came to cattle rearing farms incomes, these are also expected to show "a substantial increase in 2025”.
Economists outlined today that averaging over the year, prices for weanlings, store and finished cattle were “all up dramatically on 2024 price levels”.
They expect that higher cattle prices will result in a “large improvement in margins this year”.
“The average income on a cattle rearing farm in 2025 is estimated to be approximately €30,000, an increase of 118% on the modest 2024 level,” they outlined.
Teagasc review of 2025
For the cattle other farm category - mainly finishers – Teagasc economists also found that finished cattle prices have increased considerably, with the annual average price in 2025 up 40% on the 2024 level.
“However, prices paid for young cattle to stock these farms increased to a much greater extent than in 2024.
“With production costs up marginally, the average income for cattle other farms in 2025 is forecast to increase to approximately €23,000, an increase of 26% on the income figure reported in 2024,” they have warned.
There was also an upbeat increase in sheep and lamb prices this year according to Teagasc.
These prices were driven mainly by the reduction in sheep supply across the EU.
But one key trend also identified in the latest report is that there has been “a dramatic reduction in the volume of sheep slaughtered in 2025”.
Economists indicated that it is not clear what has been driving this reduction given the relative stability in ewe numbers nationally.
“The average income on a sheep farm in 2025 is estimated to be approximately €36,500, an increase of 33% on the average income level in 2024.
“Some sheep farms also have a secondary cattle enterprise. Therefore, the strong growth in margins from beef production also contributed to the growth in average sheep farmer incomes this year,” they said.
Pig prices
The one exception to the overall strong year for farming incomes according to Teagasc economists is in relation to pig production.
They found that pig production was less profitable in 2025, although pig production increased by 5% in volume terms.
“Pig prices, measured on a monthly basis, declined as the year progressed.
“ As a result, pig prices in 2025 were on average 6% lower than in 2024. Due to a 3% drop in feed prices in 2025, production costs were marginally lower.
"This has resulted in a reduction in margins on pig farms, with an estimated margin over feed of 79c/kg for 2025,” economists outlined.
Forestry
The latest Teagasc report also highlights that the forestry sector has had a challenging year because of the ongoing impact of Sorm Éowyn at the start of the year.
Economists said the “huge financial, logistical and supply chain challenges” have overshadowed the forest sector in 2025.
They also outlined that damage from Storm Éowyn equated to “over 2.5 times Ireland’s annual timber harvest”.
