Irish Dairy Farmers Face Over 50% Profit Margin Drop in 2026
Irish dairy farmers face a profit margin reduction of over 50% in 2026 due to lower milk prices and higher input costs, especially for fertiliser and fuel. Tillage farmers also expect reduced margins. Despite this, agricultural land prices are forecast to rise by 4% in 2026, though farmers may be more cautious about purchases.
Irish dairy farmers could see profit margins shrink by over 50% in 2026 due to falling global milk prices and increased input costs, according to a report by the Society of Chartered Surveyors (SCSI) and Teagasc. The main drivers of increased expenditure are higher fertiliser and fuel prices, exacerbated by global supply chain disruptions and the US-Israeli war with Iran impacting oil prices. Unfavourable weather in early 2026 in eastern Ireland will also contribute to higher concentrate cattle feed costs.
Tillage farmers are also expected to experience significantly lower net margins per hectare due to rising input prices, uncertain weather, and largely static global grain prices. Overall, higher energy prices will affect all sectors of Irish agriculture, given the large share of production costs tied to energy and fertiliser.
Despite these challenges, Irish agricultural land sale and rental prices are forecast to increase by 4% in 2026, compared to 7% in 2025. This is supported by strong demand and low supply. However, farmers are anticipated to adopt a more cautious approach to land purchases in 2026 due to heightened uncertainty, particularly within the dairy sector, which may limit production expansion.