Farm incomes have dropped steeply in 2023 compared with 2022, down 44% according to a new analysis from Teagasc, the State's agricultural advisory and research body.
The reduction was mainly due to steep declines in dairy and tillage sector incomes, which had soared in 2022.
Dairy farm income for 2023 is down 60% to €59,000 after a steep fall in the price paid for milk.
In 2022 dairy farmers earned €151,000 in the full year.
Tillage farmer income has also dropped 60% in 2023 from a high of €77000 last year to €30,000.
Tillage farmers had to contend with poor yields related to bad weather, and a drop in cereal prices internationally.
Cattle, sheep and pig farmers all experienced a slight increase in income this year, although from a much lower base.
Despite the overall drop in income in 2023, Teagasc economists forecast a general improvement again in 2024, with income expected to rise around 30%.
The increase is expected as dairy prices are forecast to rebound somewhat, and cereal prices are also expected to recover. Beef and sheep prices will also improve, although pig prices are expected to fall.
Next year dairy farmers are forecast to earn €86,000; tillage farmers €50,000; cattle rearing and cattle finishing farmers will earn €20,000 and €11,500 respectively, and sheep farmers are forecast to earn €18,300.
IFA President Tim Cullinan said the 44% drop in farm incomes confirmed by Teagasc was a huge concern, particularly given the ongoing cost of living crisis.
"Farmers' cost of living as well as their cost of doing business has increased, yet their incomes have fallen by 44%. We saw yesterday that agricultural exports grew to €19bn. Yet the people providing the raw materials are receiving an average income of just over €25,000," he said.
