The move towards farm owners and spouses having an off-farm income is expected to continue into the future, according to Teagasc.

The authority’s director Prof Frank O’Mara spoke to the Irish Farmers Journal at the launch of the National Farm Survey, which found that 60% of farm households had an off-farm income.

Of these farms, 43% of farm owners were working outside the farm while 41% of spouses were working off-farm.

O’Mara said the increased cost of living is a major factor driving farmers to diversify their employment.

“The cost of living in the country goes up every year and for the last number of years, has gone up quite a bit.

“People are going to choose what makes them the best living in the long term and that has led to the increase in part-time farming because farm incomes, unless the farm is growing or changing enterprise, have been challenged over the last number of years.

“I don’t think we’re going to see a major turnaround in that trend.”

Sustainability

Farms that are not economically viable, but have an off-farm income source within the household are considered to be economically sustainable.

On average, 34% of farms were considered sustainable in 2024.

Teagasc senior researcher Emma Dillon added: “The agricultural wage that’s advised is a minimum of €20,000/year, we’ve toyed with this a lot of the year: how do you value labour?

“As we see wages in off-farm incomes increasing, you can debate whether the viability definition is a good one.”