FARM income across all sectors is predicted to rise by an average of almost 40% in 2025 – as compared to last year – Teagasc economists have predicted in a report issued this week.

The dramatic spike in cattle prices through the year so far  – as well as a more modest increase in sheep prices [8%] – are some of the factors involved in the projected increase in incomes, Teagasc point out.

A steadying of farming input costs so far this year will also be a help to the overall income picture with feed prices having declined slightly as well as a dip in crude oil prices.

According to Teagasc, while fertiliser usage is likely to be higher in 2025 – driven by the cheaper prices as compared to 2022 and 2023 – the overall production costs for this year should be broadly in line with 2024 levels.

Another major plus for Irish farming this year has been the weather conditions through the first half of 2025 which have been a major plus for grass growth and on tillage farms over recent months.

Teagasc in their report also point out that while dairy commodity prices entered 2025 at a high level, they have continued ‘to remain strong’ through the first half of this year.

“Milk prices are on track to average about 7% higher than in 2024. Combining high milk prices with favourable weather, should result in a 5% increase in Irish milk production, which will result in higher margins for dairy producers.

“The average income on dairy farms in 2025 is now forecast to reach about €140,000, representing a 30% increase compared to 2024,” the Teagasc report states.

Overall Teagasc also state that while the global economic growth outlook has weakened  – relative to 2024 – nevertheless, ‘the outlook for farm incomes this year on most farms is now quite positive’.

Pictured: Spike in cattle/weanling prices and good weather a real boost for farmers.