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Farm incomes around the country rose 18 per cent in 2007 to €19,687 per farm, according to new figures released today.

The National Farm Survey, which has been compiled by Teagasc, reveals that higher milk and cereal prices were the reason for the increase in average farm incomes.

However, the study indicates that incomes on cattle and sheep farms declined in 2007.

Direct payments remained static last year, averaging €16,346 and contributing 31 per cent of farm output and 84 per cent of average farm income.

The highest annual level of investment ever recorded on Irish farms occurred in 2007, the survey shows. Gross on-farm investment increased by 76 per cent and amounted to an estimated €1.4 billion nationally.

The average gross investment on the farms that chose to invest last year was €21,000, amounting to 80 per cent of their farm income. Dairy farms accounted for almost half of this investment.

The largest increase occurred on the more commercial, full time farms. Incomes and output were much higher in 2007, averaging €43,900 compared to €34,500 in 2006 – an increase of 27 per cent.

Incomes for these commercial farmers ranged from €66,000 per farm on tillage farms, to €53,800 on specialist dairy farms and €17,700 on suckler farms. Direct payments were less important on full-time farms contributing 23 per cent of gross output and 62 per cent of farm income.

Dairying and tillage continued to be the most profitable farm enterprises with average farm incomes of €51,017 on dairy farms and €40,611 on tillage farms in 2007.

Incomes on sheep farms declined by 10 per cent last year to €10,682 per farm due solely to lower revenue from sheep sales.