There was strong output across both the dairy and tillage sectors last year, while beef and sheep production fell - according to a report from Teagasc on Ireland's agri-food sector.
Though the study notes that despite positive growing conditions and good weather at sowing and harvesting leading to "good crop yield" last year, falling grain prices compared to 2024 resulted in disappointing incomes on tillage farms.
Teagasc said the modest year-on-year rise in average tillage-farm incomes (to €47,200 in 2025) was largely down to associated livestock enterprises on tillage farms.
Meanwhile, strong dairy-sector output in 2025 - which saw milk production increase by 5% - was mainly driven by excellent grass growth and grazing conditions, as well as genetic (Economic Breeding Index) improvement, according to the report.
It said increased financial returns from livestock (calves and cull cows), and strong milk prices for most of the year contributed to the rise in dairy farm incomes to an estimated average of €137,000.
The state agency for agriculture and food development noted that the rising dairy output came despite a 1.5% fall in the number of dairy cows, adding that after rising each year since 2009 cow numbers have fallen slightly for the last two years.
It said "of particular note is the change in calf crop from the dairy herd, with 63% of dairy births registered to a beef sire in 2025.
"This is driven by increased use of sexed semen and dairy-beef straws by dairy farmers."
However, Teagasc said reducing the high cost of production for milk "will be a focus on farms for 2026, given current milk prices".
In terms of beef farming, the study said incomes increased substantially in 2025 on both suckler and dairy beef farms, which marked "a significant improvement on previous years".
According to the report, this was driven by "much improved prices", but the volume of output from the sector declined.
Teagasc figures for 2025 show prime cattle slaughterings fell by around 100,000 head or 8%, though this was partially offset by a 5kg increase in average carcass weight.
The average age at slaughter remained unchanged at 26.5 months, while suckler-cow numbers continued to decline with a reduction of 29,000 in suckler calf registrations in 2025 compared to 2024.
The study also highlights a continuing upward trend last year in the proportion of prime beef cattle originating from the dairy herd (accounting for 62% of prime cattle slaughterings).
Elsewhere, Teagasc estimates average sheep-farm incomes to have "increased significantly in 2025 to €36,500, mainly driven by increased prices for lamb.
"There was favourable spring weather and good mid-season grass growth along the western seaboard where most sheep farming is practised.
"However ewe numbers fell by 2.8% (2024 data) and throughput of lambs through Irish meat processors decreased significantly by 17% in 2025," the report noted.
The Teagasc research - entitled 'Achievements 2025: progress with innovation, Sustainability and Technical Performance in the Agri Food sector' - also addresses the agricultural sector's role in climate change and water quality.
It said agricultural greenhouse gas emissions "have declined annually since 2022, reaching a cumulative 4.6% reduction in 2024, relative to the 2018 baseline".
It also noted that "provisional EPA estimates indicate a further 0.6% decrease to the end of Q3 2025 ... mainly driven by lower cattle numbers, which were partly offset by increased nitrogen fertiliser use and a decline in the proportion of nitrogen fertiliser that was applied in protected urea products".
However, the state agency said the latest EPA Water Quality in Ireland 2019-2024 report showed "a further slight decline in surface water quality" but adds that in "priority areas for action where ASSAP advisers has been working, the mean phosphorus concentrations in rivers are consistently below (i.e. better quality than) the good status environmental quality standard of 0.035 mg/l".
Furthermore, Teagasc said "P concentrations are on average 22% lower in priority areas for action".
