Farm Incomes Up By 25%

Total income from farming is estimated to have risen by 25% in real terms. The causes were a fall in the value of agricultural outputs of 2.5% offset by a greater fall in input costs of 4.9% and an increase in Single Payment Scheme payments of 17%. Total income is expected to fall by 8.8% in 2010.

TIFF per full-time person equivalent is expected to rise in 2009 by 26% as a result of the increase in TIFF and a fall in the volume of agricultural labour input and is expected to fall by 8% in 2010.

Agricultural output is expected to have declined by 2.8% in 2009. The main factors are a fall in the value of crop production partly offset by an increase in the value of livestock production. The fall in crop values was driven by a fall in wheat, barley, oilseed rape and potato prices partly offset by an increase in the value of sugar beet yields which are expected to be high and the area of forage crops is expected to increase. Increases in cattle, sheep and pig production and an increase in capital formation in livestock ofsetting a fall in milk production value explain the increase in the value of livestock production.

Output is expected to decline further in 2010 to be only partly offset by declining input costs and a rise in payments. These estimations are subject to very broad margins of uncertainty due to the nature of agriculture.