Cereals Farmers See Big Rise In Incomes

The Farm Business Survey results show that income figures have substantially increased in the year ending February 2011. In 2010/11, incomes increased on arable and mixed farms and a smaller increase on dairy farms. However, average incomes fell on beef, sheep and pig farms. Significant variations in incomes exist within the sectors.

Mixed farms saw an increase of 57% while cereals farms increased their incomes by 107%. General cropping farms increases were 80%. The average increase across all types was 33%. In real terms it means a 97% increase for cereal farms, 72% for general cropping farms and a 49% increase for mixed farms.

Over half of cereal, general cropping and dairy farms had an income over £50,000 and a third over £75,000 but more than 15% of LFA and lowland grazing farms didn't make any profit at all and approximately 60% had incomes of less than £20,000. Different farms are influenced by a variety of different factors including size, location and soil type. The variation in incomes also reflects the differences in production costs.

Farm Business Income 2009/10

Average farm business income (net profit) per farm of all types annual percentage change was down 15% at current prices at £43,400 and in real terms at 2009/10 prices they were also down 15%. Cereals were down 34% at £46,000 and general cropping down 31% on 2008/9 and 2007/8 at £66,000. Dairying fell by 19% to £56,100. Net farm income (return to farmer) for all types was down by 24% at current prices and in real terms at 2009/10 prices at £31,500. Cereals saw a 47% fall to £27,900 and general cropping a 40% fall to £48,900. Dairying fell 32% at current prices and 31% in real terms to £40,500. Cash income (revenue less expenses) however increased by 4% across all types of farming to £63,400. Cereals increased cash income by 4% to £78,700, general cropping fell 15% to £104,300, lowland grazing livestock increased by 20% to £27,900, LFA grazing livestock by 24% to £29,300 specialst pigs by 19% to £86,300 and mixed farming by 20% to £55,300 in 2009/10 over 2008/9. Dairying cash income fell 4% to £75,000 at current prices.