New final estimates from the Central Statistics Office today show that the agricultural operating surplus fell by 39% to €2.9 billion in 2023.
It added that entrepreneurial income - which factors in the cost of interest payments and land rent on agricultural income - for the year fell by 49% to €2.1 billion.
The CSO said the two most notable points in relation to output values are the large drop in the value of milk production, which fell by 30%, and cereals, which contracted by 52%.
The value of milk, at €3.5 billion, was down €1.5 billion on its 2022 value due to output volumes decreasing by 5% and prices weakening by 26%.
The value of cereals fell to €344m, due to both lower output volumes and prices declining by an average of 30%. The area planted under cereals contracted by 6% in 2023.
The value of livestock, at €4.6 billlion, saw a rise of just €7m on its 2022 value, but the value of cattle was marginally lower by €13m.
Meanwhile, sheep values fell by €33m, a drop of 9%, and horse values decreased by €10m.
The value of pig production rose by 7% to €668m due to prices increasing by 19%, while the value of poultry grew by €17m to €222m due to both volumes and prices each rising by 4%.
Today's figures also show that the cost of most farm inputs grew last year, but despite this, Intermediate Consumption costs decreased by €127m to €7.8 billion.
The drop was mainly due to the cost of fertilisers falling by a third due to both lower volumes, which fell by 13% and prices, which eased by 22%.
The cost of Seeds increased by 28%, while Forage Plant costs rose by 12%. Veterinary Expenses went up by 11% and expenditure on Crop Protection Products grew by 10%, the CSO added.
IFA President Francie Gorman described the data as the starkest in over a decade which he said confirms the massive drop in family farm incomes outlined in the 2023 Teagasc National Farm Survey.
"This level of volatility is on a scale that individual farm businesses simply cannot handle," he said.
"It also illustrates the cashflow problems that exist in every sector due to the unpredictability of output prices and stubbornly-high input costs."
"We are operating in a high-cost economy, but farmers are at the mercy of international price fluctuations. As sole traders, we cannot pass on our costs and so we find our margins diminishing. The October Budget has the capacity to address some of these issues and we put them to both Ministers."
