Yet another year of uncertainty is facing Irish farmers. That’s according to the Irish Farm Report 2025 conducted by farming, food and agri-business specialist professional services firm, ifac.
Irish farming is in a state of flux and there is now an evident level of frustration among farmers because of the increasing amount of bureaucracy involved in running a farm business, on top of fundamental changes to farming practices.
According to the survey of Irish farmers conducted by ifac, 60% of respondents named rules and regulations as their top concern. This is closely followed by input prices (54%) and the weather (48%).
Yet overall, 51% of farmers are positive about the future – an improvement on last year (46%) but below the optimism levels of 2023 (56%).
ifac Irish Farm Report 2025
The report titled ‘The Next Generation: The Changing Face of Agriculture’, features findings from ifac’s annual farmer survey, containing the views of over 1,035 Irish farmers (surveyed between October and November 2024).
For the fourth year in a row, input prices are a big concern; one in two farmers state input prices as their biggest financial challenge.
The findings also point to other gaps in farmers’ financial planning and knowledge such as 70% not creating budgets, exposing them to financial risk.
When it comes to prioritising pensions, one in three do not know if their pension will provide sufficient income in retirement and 39% of tillage farmers have no private pension in place (compared with 22% of all farmers).
In addition, 40% of farmers are unfamiliar with the upcoming Auto-enrolment Pension Scheme and 32% of farmer employers are unaware.
ifac has said that this whole area is a red flag for the sector especially as pensions play an important role in personal security later in life and serve as a practical tool for managing farm succession.
In relation to succession, the findings again demonstrate that it is an ongoing challenge for the industry, even though slightly more families are starting to tackle succession planning.
The report shows that 23% say the biggest barrier to succession and securing the future of their farm is that the lifestyle does not appeal to the next generation – now a growing issue for the sector.
Today, one in three farmers have chosen a successor however this leaves one in five with no successor at all and a lot of farms in limbo.
Interestingly, one model that supports succession is farm partnerships – half of the farmers in a partnership have identified a clear successor.
Also, 65% are unaware of the Succession Planning Advice Grant to help with the legal, accounting and advisory costs of succession planning.
Concerning the environment, 56% of farmers cite renewable energy technology as the most significant technology on farms, benefitting the environment.
One in five farmers say they currently need additional slurry and soiled water storage but are likely not acting until the nitrates derogation picture is clearer for the longer-term.
The findings also show that employers are turning to word of mouth to find non-family employees, with 81% relying on word-of-mouth for recruitment.
In addition, the report reveals a stigma surrounding mental health in the industry – 48% of farmers who suffered with depression in the past three years did not seek help, demonstrating the slow uptake by farmers of services and supports across rural communities.
Other key takeaways from the report
- Overall outlook: 67% intend to remain in farming over the next five years, with a further 24% unsure of their future plans;
- Finances: One in four have borrowed money in the past 12 months;
- Succession: One in three over 50s do not have a Will in place, exposing beneficiaries to tax issues;
- Employment: One in four dairy farmers stated worker shortages as a key challenge
- Environment:
- 45% of beef farmers and 59% of sheep farmers would consider organic farming, compared to only 32% of tillage farmers. 64% of dairy farmers are in nitrates derogation;
- 46% of dairy farmers expect any change in nitrates limits to have a serious impact on their business;
- Technology: 42% see technology enhancing decision-making on-farm, with 37% saying it improves labour efficiency;
- Health & wellbeing: One in two farmers who suffered with depression are unsure about their farm’s future compared with one in three farmers overall.
Chief Executive of ifac, John Donoghue said: “The farming industry is changing fast and with this change comes added pressures for Irish farmers.
“While there are still many known unknowns that will greatly impact the sector such as the future of nitrates derogation, better information about farm performance and cash flow can relieve some of the pressure on farmers.
“… our report also once again highlights the extraordinary resilience of Irish farmers, despite the challenges.”
Ifac’s Irish Farm Report 2025 also features helpful case studies and advice for Irish farmers on a whole host of topics.
These include: farm partnerships; succession planning; inheritance tax; profitability and budgeting; organics; managing credit; new entrants; solar; nitrates derogation; recruitment; pension planning; and health and wellbeing.
About ifac’s survey
- ifac’s farmer survey is conducted across all sectors and aspects of farming (1,035 farmers across the country participated in the survey);
- 90% of respondents are male, 10% are female; 17% are aged 65+, 43% are aged 51-64, 31% are aged 35-50, and 9% are aged 18-34;
- The report represents numerous sectors including dairy, beef, tillage and sheep. The sector with the strongest representation is dairy at 46%, followed by beef at 37%.