Upper Austrian farm incomes set to fall after recent gains

Farm incomes in Upper Austria rose over the past three years, but are expected to decline in 2026, according to a new report by the state government reported by ORF.

Average income per agricultural and forestry business was 51,094 euros a year from 2023 to 2025, up from 39,320 euros in the previous three-year period. The 2025 average was 54,271 euros.

The figures also show sharp year-to-year swings. Farm income fell by more than 16 percent in 2023, recovered slightly in 2024 and rose more strongly in 2025. Higher prices for milk and beef, along with better crop yields, contributed to the improvement.

Higher food prices were not the only factor behind the income gains, the report said. Farm operating costs also rose, as did spending on animal welfare, barn renovations and other requirements. “One exceptional year on the upside does not mean that things are economically successful and good overall,” said Upper Austria’s Agriculture Councillor Michaela Langer-Weninger of the Austrian People’s Party. She said the key issue was whether farms could plan and invest over the long term.

Heat and exceptional drought have put pressure on agriculture in the state this year, reducing yields and affecting feed supplies. Some farms have cut their livestock numbers. The financial effects are expected to appear in future income figures. Langer-Weninger called 2026 an “exceptional year” for agriculture and forestry.

Upper Austria has 28,844 agricultural and forestry businesses. They manage about 290,000 hectares of arable land, more than 205,000 hectares of grassland and around 463,000 hectares of forest. The sector generates gross value added of about 2.9 billion euros, the councillor said.

For the next funding period, starting in 2028, the state is calling for adequate funding for the European Union’s Common Agricultural Policy, less bureaucracy, lower costs and fair producer prices. The state’s Chamber of Commerce and Chamber of Agriculture also want to explore digital tools to make the origins of certain animal products easier to trace, including in restaurants. Price remains an important factor for many consumers, despite the emphasis on quality and regional produce.