Early indications from harvest 2025 indicate that cereal prices are likely to be lower than last year as a new report also shows that the average income on tillage farms forecast to increase to €43,000 this year.

But according to Teagasc economists today (Monday, July 28) tillage farmers' incomes will be below the national average farm income forecast for 2025 which is expected to hit €48,500.

Economists believe that good planting conditions earlier this year "should contribute to higher production volume" on tillage farmers which should deliver a 12% increase on average income on tillage farms.

However they have also indicated that much of the increase in income on tillage farms will come from a "subsidiary livestock enterprise", which have benefited from higher prices in 2025.

"The forecasted income on tillage farms for 2025 is expected to be below the previous five-year average," economists highlighted in their report on "situation and outlook" for Irish agriculture this year.

Forecasts suggest that total costs on an average tillage farm this year will be about 2%lower compared to 2024.

While average gross margins per hectare for winter barley and wheat are forecast to increase spring barley gross margins are expected to decrease, according to the latest Teagasc report.

Overall with lower cereal prices and an increase in production volume, Irish cereal marketbased output value is forecast to increase "only slightly in 2025".

Economists have also highlighted that weather conditions in the current season were more "favourable for cereal crop establishment and growth" compared to the previous season, with higher areas of winter crops planted.

"While dry weather earlier in the season may have impacted some regions and crops, particularly winter barley, overall, the outlook is positive for cereal tonnage compared to 2024," they outlined.