Tillage incomes plunge by 71% in 2023

With an average farm income of €21,399 in 2023, tillage farm incomes were depleted by 71% in 2023 due to the terrible weather.

Despite the cereal area remaining relatively unchanged compared to 2022, it was the reduction in cereal production volume which resulted in the decline.

Direct payments have in general been increasing on tillage farms in recent years, Teagasc said in its National Farm Survey.

In 2023, about half of farmers in the sector undertook the Straw Incorporation Measure, and received an average payment of over €5,500. The fact that the scheme has been suspended for 2024, will hit payments this year.

Average costs on tillage farms were up 8% to €143,195 and fertiliser was the largest cost on farms at an average of €28,155. Crop protection costs increased to €12,734 and seed costs were up 8% to €8,329. The impact of the bad year is clear in the number of farms earning an income of less than €5,000, with the number soaring from 4% in 2022 to 40% last year.