Farming News - 20% average increase in farm business incomes thanks to exchange rate

20% average increase in farm business incomes thanks to exchange rate

Figures published last week reveal an average increase in farm business incomes this year across all sectors in England was 20%.The latest estimate of farm incomes revealed last week have been published here.

This is good news for farmers who work tirelessly to grow our world renowned, top quality produce 365 days a year. It also shows the UK's world leading food and farming industry is in a good position to take advantage of the golden opportunities that lie ahead to grow, sell and export more great British food outside the EU.

A key driver of this boost was the exchange rate which has led to higher farm payments and stronger export prices.

The government has committed to maintaining the same cash level for farm support until 2022 - a guarantee which has not been matched anywhere else in the EU.

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The Government are bringing forward an Agriculture Bill which they will consult on next year. They say it will “help support a thriving and self-reliant farming sector that is more competitive, productive and profitable, to protect our precious natural environment for future generations and to deliver on the manifesto commitment to provide stability for farmers as the UK exits the EU”.

In summary:

  • Dairy farmers saw incomes increased by 14 percent on average largely due to improved output from cattle enterprises. Average milk prices for the year as a whole were lower but over the course of the year they increased. The average UK price was at 27.46p per litre in February 2017 compared to 22.44 per litre in March 2016.

 

  • Lowland grazing livestock farmers saw average incomes increase by a third thanks in part to even better prices for their quality British beef.

 

  • Despite higher prices, crop output fell on cereal and general cropping farms due to lower yields. However these falls were more than offset by lower input costs with average incomes increasing by 22 and 12 percent respectively

 

  • Thanks to a boost in farm support and firmer prices, Less Favoured Areas (LFA) grazing livestock farmers saw a 42% increase in average income.

 

  • Farmers got an income boost this year with Basic Payment Scheme farm support payments up almost 20%.

The full report can be read here:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/655060/fbs-businessincome-statsnotice-26oct17.pdf