Total Farm Incomes Up 13%

Defra released the first estimates of total income from farming (TIFF) recently and it is reported to have risen by £708m or 13% in real terms between 2012 and 2013 to £5,464m. In terms of annual work units (AWU) of entrepreneurial labour the increase was 15% in real terms to £28,426 in 2013. The difference is due to a decline in the numbers of farmers and other unpaid workers.

Key contributors to the increase were milk by £505m, potatoes by £210m, and barley by £199m. The increases were offset by a decrease in value of oilseeds of £245m and an increase in the cost of animal feed of £740m.

Agriculture's contribution to GDP measures as gross value added at basic price increased by 7% or £604m to £9,222m. Intermediate consumption increased by £892m to £16,492m mainly due to an increase in the price of animal feed an additional increase in the value of seed. There was a reduction in the number of employees but a small increase in pay of £23m to compensate. The total compensation of employees in 2013 was £2,379m.

Compared to 1994 total income from farming per AWU of entrepreneurial labour has increased by 10% compared to a 15% fall in total income from farming.

Agricultural Output Prices Increase 14.5% Over The Year

The agricultural price index (API) for all outputs increased by 3.2% in March and by 14.5% on last year. The price index for all inputs fell by 0.1% in March but is up 9.7% on last year.

Crop outputs prices increased 2.8% on March and 27% on last year. Potato output prices continue to rise by another 14% in March and are more than twice the price of last year with an increase of 125%. Price rises were offset by a fall in cereals prices of 3.4% in March but over the year they are still 25% higher than last year. Animal and animal products prices increased by 4% in March and are 5.6% up on last year. Animal slaughter prices increased by 7.4% largely due to a 20% rise in sheep prices. They are however still 12% below last year's prices.

Prices for agricultural inputs have not changed much in March. The overall index changed only by a 0.1% fall. Over the year prices generally are up by 12%. The increase is due mainly to a 46% rise in the price of seeds and feed price increases of 16% both sets of prices being affected by the poor cereal harvest of 2012.

Agricultural Producer Prices Up In March

In the monthly API of prices received by producers of agricultural products for March 2011 cereals went up to 251 from 247.9, industrial crops fell to 148.1 from 150.2 and fresh vegetables fell to 129.1 from 141.5. Seeds remained stable. Animal and animal products increased from 146.7 to 150.5 with animals for slaughter or export increasing from 150.4 to 156.4. The total of all products increased to 167.5 in March 2011 from 163.5 in February 2011.

Annual statistics for 2010 show cereals have increased to 171.8 from 150.1 in 2009, industrial crops to 138.8 to 132 and fresh vegetables to 131.9 from 113.9. The total of all crop products increased to 149.2 from 131.1. The total of all products index increased to 144.4 in 2010 from 136 in 2009.

Prices paid by producers for agricultural inputs in March 2011 included energy and lubricants increased in price from an index of 164.3 to 169.6, fertilizers and soil improvers increased from 223.6 to 227.9, plant protection products fell slightly from 103.7 to 103.6 and seeds remained stable. Animal feed fell from 191.6 to 188.7. Maintenance costs generally increased with repair of plant increasing to 132.1 from 131.3 and buildings from 136.7 to 137.4. Veterinary services costs remained stable at 123.9. Other goods and services fell considerably from 150.2 to the more usual 128.9. Machinery and other equipment increased slightly from 125.6 to 126.3 qand buildings from 130 to 132.5. The total for all means of agricultural production fell from 154.9 in February 2011 to 149 in March 2011.

In the annual series, the total of all means of agricultural production increased to 135.8 from 129.9. Within the total, there were increases in the prices of energy and lubricants which increased to 151.4 from 132.9 and animal feed which increased to 160.9 from 152.5. Maintenance costs increased from 121.5 to 126.9 for plant and 122 to 130.4 for buildings. Veterinary costs increased from 104.7 in 2009 to 118.8 in 2010. Machinery and equipment went from 122.1 to 125.3. Buildings increased to 126.9 from 120. There were some decreases. Fertilizers and soil improvers fell to 182.4 in 2010 from 189.8 in 2009 after the massive increases of 2008 (272.5) mainly due to price falls in compound fertilizers and the lime/chalk fertilizers and plant protection products fell across the board from 107.7 to 105.1.

Increase In Agricultural Prices

Defra has released the Agricultural Prices Index series for August 2010. The API all products price index for prices received by producers for agricultural products increased from 137.6 in July to 142.0 in August. Cereals prices increased overall from an index of 144.6 to 176.6 with wheat, barley and oats all going up, industrial crops also increased from 157.9 to 163.8 with potato and oilseed rape prices increasing and sugar beet unchanged. Fresh fruit prices also increased but the prices index for fresh vegetables fell from 124.9 to 116.9. The overall crops products index increased from 138.8 to 146.3 but seed and other crop products remained the same. Calf prices fell but cows and bulls increased and cattle increased helping the animal and animal products index increase slightly from 136.6 to 138.2.

Prices paid by producers for agricultural inputs have also increased slightly from an index of 139.7 in July to 141.7 in August 2010. Seed prices and spray prices stayed the same over the month but fertiliser prices increased slightly from 245.1 in July to 248.6 in August. Energy prices increased slightly from 148.1 to 148.5. The cost of animal feedingstuffs increased from an index of 159.9 in July to 164.6 in August 2010 with significant increases in the prices of feed wheat and feed barley. The prices of goods and services of plant and buildings and veterinary services increased slightly overall. There was a slight increase in the price of machinery and equipment and farm buildings prices were unchanged. The index for all means of agricultural production increased by two points from 139.7 to 141.7.

Agricultural Inputs Prices Rise Again

The index of prices received by producers for all agricultural products returned to its May level of 137.5 from the June level of 137.9 in July 2010. Crop products increased from 138.6 to 139.4 but animals and animal products fell from 137.9 to 137.5. Within crop products, the cereals index increased from 142.5 to 144.6 and industrial crops from 136.5 to 157.9. Fresh vegetables fell to 127.9 from 131.1. These prices exclude subsidies.

Prices received for cereals fell again in 2009 from 207.1 in 2008 to 150.1 and industrial crops from 232.9 to 183.4 respectively. Farm gate prices for fresh vegetables also fell in 2009 from 117.5 to 113.9. The index for the total for all products fell from 143.3 to 135.8 in 2009.

The index of prices paid by producers for agricultural inputs shows that the prices paid for seed fell from 101.5 to 99.6 in Jul 2009, fertilisers and soil improvers fell to 244.3 from 245.7. Plant protection products remained unchanged at 99.9. The animal feedingstuffs index increased from 156.1 to 159.9. The overall index for agricultural inputs increased for the fifth consecutive month from 137.2 to 139.7 in July 2010.

The annual series shows that the overall index for prices paid by producers for agricultural inputs fell from 139.6 in 2008 to 132.9 in 2009.

Producer Prices Index Of Agricultural Products

The producer prices index of agricultural products for cereals was 114.9 in February 2010 down from 116.1 in January. The annual series index of cereals in 2009 was 150.1 down from 207.1 in 2008 an unusually high index in the series since 2003. Industrial crops for February increased from 123.8 to 124.6 and vegetables decreased from 127.3 to 121.6. Animals and animal products decreased from 143.2 to 140.9. The all products total index decreased slightly from 137.4 to 136.6 in February. The total of all products index for 2009 decreased from 143.3 to 135.5.

The purchase prices index of agricultural inputs includes seeds, crop protection products and fertilizers as well as feedingstuffs and energy. Seeds were unchanged at 104.5 in February, sprays were also unchanged at 99.9 but the fertilizer index increased from 209.8 in January to 214.7 in February 2010. The index of feedingstuffs increased from 154.3 to 156.2 over the month between January and February. The energy and lubricants index decreased from 152.8 to 149.1. The maintenance and repair of plant index was 125.3 from 125.4, of buildings 125.8 from 123.8, veterinary services went from 105.2 from 105.0. Cultivation and harvesting machinery, tractors and other machinery and equipment increased from 125.0 to 125.1. Buildings increased from 122.1 to 123.6. The index of all means for agricultural production for February 2010 went up to 122.2 from 121.7 in January and for 2009 the index was down to 133.1 from the sharp increase to 139.6 in 2008 from 113.8 in 2007.

Agricultural Prices Index For September 2009

The agricultural producer and purchase prices indices for 2008-9 to September 2009 were published by DEFRA last week. The survey includes producer price indices for cereals, industrial crops, fresh fruit and vegetables, seeds, flowers and plants and other crop products as well as for animals and animal products. The survey includes purchase price indices for seeds, energy and lubricants, plant protection products and animal feedingstuffs. It also includes costs for the maintenance and repair of plant and buildings, veterinary services, costs of other goods and services, machinery, plant and other equipment and buildings. The totals for all products and all means of agricultural production are also included in the survey.

The indices for all products were 143.3 for 2008 from 118.8 for 2007 and 130.2 in September 2009 from 130.8 in August and the indices for all the means of agricultural production were 130 for September 2009 from 131.1 in August and 139.7 for 2008 from 113.8 in 2007 (2005 = 100).