Northern Ireland's agriculture sector recorded profits above £1bn in 2025 for the first time, marking a 36% real-terms increase driven largely by record beef and dairy prices. The figure, calculated from output and subsidy value minus production and finance costs, reflects total output rising 12% to £3.6bn while input costs edged up marginally to £2.2bn. Officials have warned, however, that this level of performance is not expected to continue into 2026.
Key Facts
- Total farm profits surpassed £1bn in 2025, up 36% in real terms
- Beef output value rose 37% to just under £900m despite slightly lower production volumes
- Average individual farm profit is forecast to rise from £56,390 in 2024/25 to £66,840 in 2025/26
- Roughly 30% of 2025 profit came from public subsidy — low compared with historical norms
- The Department of Agriculture, Environment and Rural Affairs (Daera) projects a 19% rise in profits at farm level for 2025/26
What drove the surge in beef and dairy prices?
The jump in profitability was largely fuelled by beef, which climbed to record price levels during the year. Farmers producing beef saw the value of their output rise 37% even though overall production volumes fell slightly, a pattern consistent with wider shifts across the UK and European beef industry. Years of thin margins and tightening regulation had pushed many producers out of beef farming, shrinking supply just as consumer demand held steady — a combination that pushed prices upward. Dairy and egg production also performed strongly in 2025, sectors that have both undergone considerable consolidation and investment over the past decade.
Is this level of profitability sustainable?
Agriculture Minister Andrew Muir has cautioned that the strong figures for 2025 are unlikely to be repeated this year.
The agriculture sector as a whole performed strongly in 2025 with high prices for most commodities particularly milk and beef.
While these results are positive, I recognise that market prices have fallen considerably in 2026 while input costs have risen with an uncertain outlook for the period ahead.
That warning is already reflected in the market. According to the Ulster Farmers' Union, Northern Ireland beef prices eased in spring 2026 to around 600–610p/kg, down from earlier levels of 630–640p/kg. A regional broadcaster's report in May 2026 quoted a Northern Ireland beef farmer describing price falls of 65–70p/kg, describing the sector as facing a perfect storm of plunging prices and rising costs, according to a regional broadcaster's report. A market update covering week 29 of 2026 showed deadweight beef prices still trailing the previous year, with R3 steers at 671.1c/kg, heifers at 672.4c/kg and young bulls at 676.0c/kg, according to an industry market report.
How does subsidy factor into farm income?
Just under 30% of the sector's profit in 2025 came from public subsidy, a notably low proportion by historical standards. In leaner years, subsidy has accounted for the majority — or even the entirety — of farming profits in Northern Ireland, underscoring how unusually strong market prices were the main driver of last year's results rather than government support.
What is the wider outlook for 2026?
Separate analysis published in April 2026 estimated that overall farm profitability in Northern Ireland would fall by around 15% this year, according to Michael Haverty of Andersons, cited by the Irish Farmers Journal. Dairy margins in particular remain under pressure, with analysis in February 2026 indicating that typical Northern Ireland dairy farms needed milk prices above 36p/l to sustain profitability, according to the Irish Farmers Journal.
What happens next?
Daera's Quarter 1 Agricultural Market Report for Northern Ireland was published on 21 May 2026, continuing a rolling series of price updates covering cattle, sheep, pigs, poultry, potatoes and cereals, according to the UK government's statistics release. Daera's market-reporting page had been updated through 4 May 2026, and further quarterly price updates are expected as 2026 progresses, offering a clearer picture of whether the sharp price falls already seen this year will deepen or stabilise.
