2.4 National Farm Survey – Preliminary results 2022
The Teagasc National Farm Survey (NFS) has been conducted on an annual basis since 1972. The survey is operated as part of the Farm Accountancy Data Network (FADN) of the EU and fulfils Ireland’s statutory obligation to provide data on farm output, costs and income to the European Commission. A random, nationally representative sample is selected annually, in conjunction with the Central Statistics Office (CSO), to represent those farms with greater than €8,000 of Standard Output. Each farm is assigned a weighting factor so that the results of the survey are representative of the national population of farms. These preliminary results are based on a sample of 700 farms, which represents 85,000 farms nationally.
Standard Output
The Standard Output of an agricultural product is defined as the average monetary value of the agricultural output at farm-gate prices. Standard Output is not a measure of farm income. It does not take into account costs, direct payments, value added tax or taxes on products.
Farms are assigned to five main farm systems, on the basis of farm gross output, as calculated on a standard output basis. The NFS farms are categorised into one of five main farm types:
(i) Dairy
(ii) Cattle Rearing, which comprises farms that are mainly specialised in suckler beef production
(iii) Cattle Other, which comprises mainly of beef finishing farms, but also includes farms
selling store cattle
(iv) Sheep
(v) Tillage.
Figure 2.7 Number of farms by Farm System included in NFS 2022
n Mixed Livestock, 2,035
n Dairying, 15,319
n Cattle Rearing, 17,900
n Cattle Other, 30,327
n Sheep, 13,979
n Tillage, 6,246
n Mixed livestock, 2,035
Total 85,806
Source: Teagasc, National Farm Survey – Preliminary results 2022
Some data on Mixed Livestock farms is also available, representing about 2% of the farm population. Given that individual farms typically have more than one farm enterprise, a rigorous basis for categorising farms into each system is required. “Farm system” or “type” refers to the dominant enterprise in each group. For example, the cattle rearing system refers to those farms where the greater proportion of the farm’s activity relates to suckler beef production. There are many other farms (including those in the dairy, sheep and tillage systems) that have a cattle enterprise. The mixed nature of Irish farms is reflected in the individual contribution of livestock and crop categories to gross output.
Farms below the €8,000 standard output threshold are not included in the annual survey sampling frame but data is collected on those through the Teagasc Small Farms Survey, which is less frequently, the most recent results available are for 2015.
Family Farm Income (FFI)
FFI is calculated in the Teagasc National Farm Survey by deducting all farm costs (direct and overhead) from the value of farm gross output. Unpaid family labour is not included as a cost. FFI therefore represents the financial reward to all members of the family, who work on the farm, for their labour, management and investment. It does not include income from non-farming sources and thus may not be equated to household income.
Factors Influencing FFI There are numerous factors which have an influence on FFI and many of these are outside the control of the farmer. In any one year, weather can have a significant impact on FFI. For example, in 2018, there was a cold, wet spring with snow in many parts of Ireland in early March. This was followed by a hot, dry summer, resulting in lower yields for many crops including grass and additional feed costs on many farms resulting in a fall in average FFI of 20% in that year. However, FFI did not fall on all farms in 2018 as, despite lower yields, tillage farms saw their FFI increase due to higher prices.
Over the past ten years since 2013 average FFI has fallen in three years, held steady for one year and increased in six of the ten years. However, 2021 is the only year in the past ten years where every sector saw an increase in FFI.
The agri-food sector is globally orientated, with approximately 90% of Irish beef, sheepmeat and dairy produce exported each year, and prices received are heavily influenced by world market prices. Over 40% of beef exports go to the United Kingdom, with a further 45% going to the EU. Therefore, the price our farmers receive for their beef will be influenced by the price that customers in the United Kingdom and the EU are prepared to pay. If farmers in the United Kingdom or the EU, or indeed any country around the world, produce beef of a similar quality at a lower price, this can have a knock on effect on Irish beef prices.
The average farm size and the quality of the land the farmer farms influences FFI significantly. Tillage and dairy farms tend to be based on the better-quality lands. They are also on average about twice the size of the average cattle rearing or cattle other farms. The average dairy farm in 2022 NFS was 65 hectares in size, with the average tillage farm 71 hectares, while the average cattle farm was closer to 34 hectares. When comparing average FFI on a dairy farm with a cattle other farm, the dairy farm FFI is almost eight times higher. However, comparing FFI per hectare, the dairy farm is about four and a half times greater than on cattle other farms.
National Farm Survey Preliminary Results, 2022 The preliminary results for the 2022 National Farm survey issued in June 2023 shows that the average FFI for 2022 was €45,809, a 32% increase on 2021 figures. The average FFI has increased each year for the past four years from €24,213 in 2018 to €24,804 in 2019 to €27,241 in 2020, €34,367 in 2021 and to €45,809 in 2022. Over this period since 2018 the average FFI has increased by 89% from €24,213 to €45,809 but this average has been driven by very large increases in dairy farm FFI with more modest increases in other farm types.
Dairy farm FFI increased by 138% between 2018 and 2022 or by €87,541 to €150,884. Tillage farm FFI increased by 84% from €41,589 to €76,654 in 2022. However, on cattle and sheep farms the increase in FFI was much more modest with average increase closer to 20%. Cattle rearing FFI saw the smallest increase at €1,081 over the four years from €8,327 to €9,408, sheep farm FFI rose by €3,020 from €13,434 to €16,454, while cattle other FFI increased by €3,755, or from €15,056 in 2018 to €18,811 in 2022.
In 2022 FFI income increased on dairy, tillage and cattle other farms, while it fell by 13% on cattle rearing farms and by 21% on sheep farms. Higher output prices for milk and grains were the main driver of the increase in average FFI. In general, farms experienced an increase in production costs, as key farm input prices for fuel, feed and fertiliser all rose in 2022. This followed increases in 2021 of about 25% in fertilisers and a 10% to 15% increase in feeding stuffs and energy. The increasing cost of farm inputs continued in 2022 with the cost of fertiliser increasing by over 120%, feeding stuffs up by 30% and energy up by over 40%. Most input costs peaked in late 2022 with prices stabilising and reducing somewhat soon after.
Figure 2.8 Family Farm Income by Farm Type in 2022
€160,000
| €150,884 | ||||||
|---|---|---|---|---|---|---|
| €76,654 | ||||||
| €76,654 | ||||||
| €45,809 | ||||||
| €18,811 €16,454 €9,408 |
€140,000
€120,000
€80,000
€60,000
€40,000
€20,000
€0
Dairying Cattle rearing
Cattle other
Sheep Tillage All farms
Source: Teagasc, National Farm Survey – Preliminary results 2022
Dairy system production costs rose by 32% in 2022 but significantly higher milk prices, up by 47%, resulted in a record average dairy farm income of just under €151,000, an increase of 53%, or over €52,000 on the 2021 level.
In the cattle rearing system, which is made up of farms that are mainly specialised in suckler beef production, costs increased by 13% in 2022, despite large reductions in the volume of fertiliser used and some reductions in the volume of concentrate feed used. However, the value of output on cattle rearing farms increased in 2022 by 6%, mainly due to higher cattle prices. The value of support payments for cattle rearing was down 5% in 2022. Overall, the average cattle rearing FFI was just over €9,400 in 2022 down over 13% or close to €1,500 compared with the 2021 level.
In the cattle other system, which comprises mainly of beef finishing farms, but also includes farms selling store cattle, production costs increased by 31% in 2022. With support payments up 3% and the value of farm output up by 25% mainly due to higher cattle prices, this resulted in an average income of €18,800, an increase of 9%, or over €1,500, compared with the 2021 level.
Production costs rose on sheep farms in 2022 by 24%, largely due to higher prices for feed and fertiliser, as well as higher overhead spending. The sector experienced a 9% increase in the value of farm output. On average, the level of direct payments for sheep farms was down 4%. The average income on sheep farms was close to €16,500 in 2022, a decrease of 21%, or €4,300 relative to the record 2021 level.
For the second year in a row higher fertiliser, feed and contracting charges saw production costs on tillage farms increased by over 30%. However, the average income on tillage farms rose by 32%, or almost €19,000 in 2022 to reach almost €77,000. This was because tillage farms experienced particularly good production conditions in 2022, which led to good crop yields. Substantially higher cereal prices in 2022 also helped to boost the value of farm output, which increased by 32%.
Distribution of FFI and Farm Holdings An analysis of the Teagasc National Farm Survey shows that 38% of farms have a FFI of less than €10,000 in 2022. Fifteen percent of farms have a FFI of greater than €100,000, compared with just 5% in 2020. On cattle rearing farms 65% of farms have a FFI of less than €10,000, while on dairy farms 62% have a FFI of greater than €100,000.
Almost 60% of the aggregated FFI is returned on dairy farms despite the fact that they represent just over 18% of all farms in the survey. Cattle rearing and cattle other farms represent 56% of all farms, yet they return just 19% of aggregated FFI.
According to the Teagasc survey, there are 15,319 dairy farms and 72% of these are in the Southern region of the country, which includes all six Munster counties along with Wexford, Kilkenny and Carlow. Sheep farms are concentrated in the Northern and Western region, which covers the five Connacht counties along with Donegal, Cavan and Monaghan, with 8,439 sheep farms or 60% of the total. In contrast there are just 92 tillage farms in the Northern and Western region out of a total of 30,995 farms in the region. The Eastern and Midland region which comprises Louth, Meath, Dublin, Kildare, Wicklow, Laois, Longford, Offaly and Westmeath has the smallest number of farms at 16,738 with 2,457 tillage farms. Overall, 44% of all farms are in the Southern region, 36% in the Northern and Western region and the balance of 20% in the Eastern and Midland region.
FFI volatility and Direct Payments Over the last 10 years, the average FFI has increased from €25,436 in 2013 to €45,809 in 2022, an increase of 80%. However, the increase has not been even over the years, as can be seen in figure 2.9. FFI on dairy farms, for example, increased by 73% in 2017 but that followed decreases in 2015 and 2016. In 2018, FFI on dairy farms dropped by 30%. This highlights the volatile nature of FFI, and faming income generally, which can vary significantly from year to year.
€160,000
Figure 2.9 Family Farm Income by Farm Type, 2013-2022
€140,000
€120,000
€100,000
€80,000
€60,000
€40,000
€20,000
€0
2013 2014 2015 2016 2017 2018 2019
Dairying Cattle Rearing Cattle Other Sheep
Source: Teagasc, National Farm Survey – Preliminary results 2022
While cattle rearing FFI is the lowest over the years, it has gone from around €9,500 in 2013 to a high of €12,660 in 2015 to a low of €8,327 in 2018 and back to close to €9,500 in 2022, similar to what it was ten years earlier. While FFI on cattle and sheep farms varies over the years, it is not as volatile as on tillage and dairy farms. The lower level of FFI volatility on cattle and sheep farms is partially due to the level of direct supports these farm types receive.
Table 2.3 Direct Payments as Proportion of FFI
| 2022 Dairying Cattle Cattle Sheep Tillage All Farms Rearing Other | ||||||
|---|---|---|---|---|---|---|
| % of farms represented | 18% | 21% | 37% | 17% | 7% | 100% |
| Direct Payments | €21,346 | €14,309 | €16,183 | €18,092 | €29,121 | €18,274 |
| FFI | €150,884 | €9,408 | €18,811 | €16,454 | €76,654 | €45,809 |
| DPs as % of FFI | 14% | 152% | 86% | 110% | 38% | 40% |
Source: Teagasc, National Farm Survey – Preliminary results 2022
Figure from page 45
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Chapter SEVEN
Chapter TWO
While FFI on cattle and sheep farms varies over the years, it is not as volatile as
on tillage and dairy farms.
In 2022, direct payments accounted for 110% of sheep FFI and 152% of cattle rearing FFI. This indicates that on sheep and cattle rearing farms a portion of the monies received in direct payments was used as compensation for losses on farm output. In contrast, just €14 in every €100 of FFI on dairy farms was provided by direct payments. The high percentage of direct payments included in FFI on cattle and sheep farms ensures that even in lean years there will be a basic level of FFI.
Family Farm Income by Farm Type per Hectare The average farm size included in the Teagasc National Farm Survey in 2022 was 45 hectares, with average income per hectare coming in at just over €1,000; up from just under €800 in 2021. The lowest FFI per hectare was on cattle rearing farms at €301 per hectare and they also had the smallest average farm size at 31 hectares. In contrast cattle rearing farms received the highest direct payments per hectare at €462, compared with an average of €406. Dairy farms generate average FFI of €2,332 per hectare, close to eight times that of cattle rearing, yet they receive €132 per hectare less in direct payments at €330 per hectare. Cattle other farms, which tend to be 37 hectares on average, generate FFI of €506 per hectare, while sheep farms, on average eight hectares larger, generate a FFI of €366 per hectare. Tillage farms in 2022 generated FFI of €1,087 per hectare, with €406 of that FFI due to direct payments. Tillage farms have the largest average farm size at 71 hectares.
Figure 2.10 Family Farm Income per Hectare, 2019 -2022
€2,500
€2,000
€1,500
€1,000
€500
€0
Dairy Cattle rearing Cattle other Sheep Tillage All
2019 2020 2021 2022
Source: Teagasc, National Farm Survey – Preliminary results 2022
Off farm Employment Income, 2022 According to the Teagasc National Farm Survey (NFS), in 81% of farm households either the farmer and/or spouse has an off-farm job and/or another income from pension or social assistance. Therefore, just less than one in five farm households rely fully on their farm as their only source of income.
In the NFS, a farm is classed as full-time or part-time based on the standard labour units required to operate the farm, as calculated on a standard man day basis. This results in many farms classified as part-time, yet the farmer may have no other employment source. On average, part-time farms which have no off-farm job have an average income of €11,352. The average full-time farm, where the farm holder or spouse does not have an off-farm job, has an income of €115,880.
Many farm holders regarded as full-time (based on the standard labour units required to operate it) may also have an off-farm job. Their average income is €89,440, of which €66,775 is from farming activities and the balance from the off-farm job.
On those farms where the farmer has no off-farm job, the average income on the farm is €59,957. While on the farms where the farmer has an off-farm job, the average income drops to €51,026. In 2021 the farmer with an off farm job had a higher total income than those with no off-farm job but with the significant increase in dairy farm incomes, most of whom are full time farmers, this has been reversed in 2022.
Figure 2.11 Source of Income on Farm Households 2022
| Farmer has no of-f farm job €11,352 €11,358 €11 €11 €59,954 €59,957 Farmer has of-f farm job €11,683 €30,634 €42,317 €66,775 €22,664 €89,440 €21,864 €29,161 €51,026 | ||||||
|---|---|---|---|---|---|---|
| € € | ||||||
| €59,954 €59,957 | ||||||
| €11 | ||||||
| Farme | r has of-f | farm job | ||||
| ,683 €30 | ,634 €42,31 | 7 €66,7 | 75 €89 | ,440 | ||
| €22,66 | 4 | |||||
| €21,86 €29 | 4 ,161 €5 | 1,026 | ||||
Part-time farms
Full-time farms
All farms
Part-time farms
Full-time farms
All farms
€0 €20,000 €40,000 €60,000 €80,000 €100,000€120,000€140,000
Farm income Off-farm income Total Income
Source: Teagasc, National Farm Survey – Preliminary results 2022
About 57% of farm households had a source of off-farm employment income in 2022, up from 53% in 2021 and 52% in 2020. The proportion of farm households where the spouse was employed off-farm rose from 36% in 2021 to 41% in 2022, while the proportion of farmers employed off-farm was slightly less, at 37%, up from 33% in 2021.
The off-farm employment situation differs by system, with cattle and sheep farmers most likely to work off-farm at 44%. The proportion of tillage farmers employed off farm increased from 35% in 2021 to 42% in 2022. Although a very low proportion of dairy farmers at 10% work offfarm, 56% of dairy farm households have an off-farm employment income as a high proportion of spouses work off-farm on dairy farms.
Full and Part Time Farms, 2022 According to the preliminary results of the 2022 NFS, a little over one third of farms are fulltime farms and just less than two thirds are part-time farms. A significant difference between the two groups of farms is the average utilisable agricultural area (UAA) farmed. Full-time farms have an average of 74 hectares while part-time farms have less than half that amount of land, at 29 hectares. The availability of land and whether the farm is full-time or part-time are significant factors on FFI. Full-time tillage farms have the largest farms on average, at 119 hectares, while part-time dairy farms have an average farm size of 20 hectares, about one sixth
Full-time farms have a FFI in 2022 of over €106,000, while part-time farms have an average FFI of around €11,500 or about 11% of the full-time farm. Part-time cattle rearing farms have an average FFI of €7,000, while full-time dairy farms have an average FFI of €158,600, more than twenty times greater.
Subsidies and Direct Payments, which contribute to FFI on all farms, are particularly important on part-time farms, where they contribute 108% of the FFI, meaning that without these payments, the farm would be making a financial loss. While they are also important on full-time farms, they contribute far less proportionately to the average FFI at 27%.
Table 2.4 Main results from National Farm Survey for Full-time and Part -time farms, 2022
| System Dairying Cattle Cattle Sheep Tillage Mixed All Sizes Rearing Other Livestock | |||||||
|---|---|---|---|---|---|---|---|
| Full-Time Farms | |||||||
| Per Cent of Population | 16.8 | 2.2 | 7.5 | 3.8 | 3.2 | 2.3 | 36.0 |
| U.A.A (ha) | 67.5 | 54.5 | 67.2 | 90.1 | 119.3 | 70.8 | 74.0 |
| Family Farm Income | €158,613 | €29,581 | €44,326 | €43,223 | €125,726 | €84,341 | €106,543 |
| Subsidies and Direct Payments | €22,213 | €27,746 | €29,640 | €40,030 | €46,100 | €29,123 | €28,641 |
| DPs % of FFI | 14% | 94% | 67% | 93% | 37% | 35% | 27% |
| Part-Time Farms | |||||||
| Per Cent of Population | 1.0 | 18.6 | 27.7 | 12.4 | 4.0 | 0.0 | 63.9 |
| U.A.A (ha) | 19.7 | 28.6 | 29.1 | 30.9 | 30.5 | 0.0 | 29.2 |
| Family Farm Income (€) | €26,954 | €7,020 | €11,870 | €8,112 | €36,429 | €0 | €11,509 |
| Subsidies and Direct Payments (€) | €7,452 | €12,718 | €12,522 | €11,256 | €15,204 | €0 | €12,418 |
| DPs % of FFI | 28% | 181% | 105% | 139% | 42% | 0% | 108% |
Source: Teagasc, National Farm Survey – Preliminary results 2022
Figure from page 49
Figure from page 49
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