THE income on an average dairy farm in 2021 was €97,350, up 23% or €18,300 on 2020.
That’s according to the just-released Teagasc National Farm Survey 2021 which is representative of almost 85,000 farms in Ireland.
Higher output prices was the main driver of the increase, however on the flipside the survey found that dairy system production costs rose by 11%.
It also pointed to hikes in prices for fuel, feed and fertiliser in 2021, which marked the beginning of the escalation in costs that has since intensified. The report found the average family farm income rose by 26% in Ireland in 2021 to just over €34,300.
In the cattle rearing system, which is made up of farms that are mainly specialised in suckler beef production, costs increased by 10% in 2021. However, the value of output on cattle rearing farms increased in 2021 by 15%, mainly due to higher cattle prices. Overall, the average cattle rearing income of €10,927 in 2021, was up 30%, or €2,500 compared with the 2020 level.
In the ‘cattle other’ system, which comprises mainly of beef finishing farms, but also includes farms selling store cattle, the average income was €16,416, an increase of 6% or €900 compared with the 2020 level.
The average income on sheep farms reached almost €20,500 in 2021, up €2,600.
Due to higher fertiliser, feed and contracting charges, production costs on tillage farms increased in 2021 by 34%. However, the average income rose by 77% in 2021 to almost €59,000. This was because tillage farms experienced particularly good production conditions in 2021, which led to higher crop yields. Substantially higher cereal prices were also a factor.
Pig farm incomes are not reported in the report, but data shows pig producers moved into loss making territory as 2021 progressed.
