Farm Incomes Rise Despite Collapsing Milk Prices

Farm Incomes Rise Despite Collapsing Milk Prices

Average farm incomes up by 6% to € 26,526 Teagasc says but income on dairy farms is down by 4%

Despite a collapse in milk prices, average farm incomes in the Republic rose by 6 per cent to € 26,526 last year, according to Teagasc.

The group’s National Farm Survey shows average income on dairy farms fell by 4 per cent to € 63,020 amid a 20 per cent fall in prices.

The study is widely regarded as the definite measure of agricultural income in the Republic.

It suggests dairy farmers compensated for declining prices by expanding production, which was facilitated by the lifting of EU milk quotas.

Almost one in three dairy farms increased their milk production by 20 per cent or more, with just one-fifth of farms choosing to reduce output.

“The lower milk price in 2015 meant that dairy farmers had to increase their milk output by at least 20 per cent to just maintain their income at the 2014 level,” said Dr Thia Hennessy, head of the Teagasc farm survey.

In contrast to milk prices, cattle prices rose between 6 and 16 per cent depending on animal type.

As a result, average farm income on cattle farms rose between 29 and 34 per cent to €12,904.

The relatively low figure in this sector reflects the predominantly part-time nature of beef farming.