FARM incomes shot up by an average of 87% in 2024 as compared to the previous year, according to the latest Teagasc figures – but the ‘sting in the tail’ could be major increases in farm income tax bills this autumn.

All of the main farming sectors – dairy, cattle rearing, ‘cattle other’, sheep and tillage – showed major increases in profits after a particularly bad income year in 2023.

Dairy and sheep farmers were the big income ‘winners’ last year with increases of 113% and 115% respectively while profits in the tillage sector were up by 101%.

Cattle rearing [sucklers] profits were up by 93% while ‘cattle other’ [finishers and store cattle enterprises] had an increase of 32%.

The average income on an Irish dairy farm [Republic] last year was just over €108,000, while the lowest average income, of just over €13,500, was on cattle rearing enterprises.

According to the Teagasc Preliminary National Farm Survey Report for 2024, the income growth on Irish farms was ‘driven by a combination of improved farm output prices, some easing in input costs, and additional support payments under the new CAP’.

Taking all farming sectors into the equation, the average farm income across the Republic of Ireland in 2024 came in at €35,937 – up 87%, or €16,733, on the 2023 figure.

However, Ifac, the Irish Farm Accounts Co-operative Society, has this week advised Galway farmers to ‘start managing their tax cashflow now, ahead of autumn tax bills’.

Tom O’Farrell, Ifac Athenry, said that with suckler and beef farmers receiving higher prices than ever before for their livestock sales – both in the live trade and from processors – options to reduce income tax bills should be looked at.

“For farmers looking at 2024 figures and their expected income for 2025, there are possibilities to reduce income tax bills, invest in the farm for the future, and make the farm a safer place to live and work.

“With tax to pay in October, managing tax cashflow is incredibly important, so they need to get working, get their tax figure and understand their options,” Tom O’Farrell has advised.

Some of the options in helping to reduce income tax bills, according to Ifac, include stock relief, family wages, income averaging, pension contributions, the provision of farm facilities and safety improvements.

Pictured: Tom O’Farrell: Plan now to reduce tax bill.