Teagasc’s annual report for 2023 showed the authority made an operating surplus of €1.7m last year, down from €8.9m in 2022. This was despite an €8.8m increase in Government grants to €168.6m for the year.

Income from its advisory service and farm operations fell by €2m to €46.9m, driven by a fall in advisory fees and a 25% drop in farm income, a reflection of market conditions.

The report was audited by the Comptroller and Auditor General and highlighted the cost of settling claims from farmers, which significantly increased last year.

Teagasc paid settlements of €336,000 during the year and made provision for another €167,000.

The settlements arose after farmers who engaged Teagasc to prepare and submit applications and support administrative compliance for a range of schemes and regulations were unsuccessful.

Teagasc said that its work on schemes such as ACRES has increased significantly in recent years and that the authority has reviewed its terms of engagement with clients, and now considers them to be “robust”.

The average number of employees at the authority rose by 79 to 1,439, with almost half of those earnings salaries in excess of €60,000. Teagasc director Professor Frank O’Mara was paid €184,000 in 2023. Total employee costs including retirement benefits and social welfare contributions increased by €9m to €146m in 2023.

The gender pay gap was at 11% at the end of the year, and the board had seven female and four male members.

O’Mara said that Teagasc “could see the need to restructure the advisory service to best position itself to support farmers”, as the sector faces climate, water quality and farm challenges.