Farming News - Defra figures show fall in farm business income for some sectors

Defra figures show fall in farm business income for some sectors

11 Jan 2021
Frontdesk / Finance

In 2019/20, average Farm Business Income was lower for cereal, general cropping, lowland grazing livestock, mixed and horticulture farms.

While more favourable weather conditions compared to 2018 produced higher yields for many crops, a combination of lower prices for key commodities such as wheat and barley, together with increased input costs led to income on cereal and general cropping farms falling by 7 percent and 21 percent respectively.

On dairy farms, average income increased by 6 percent, with increases in milk production and revenue from other cattle enterprises offsetting lower average milk prices.

On lowland grazing livestock farms, lower incomes were driven by reduced output from both cattle (reflecting lower prices and numbers) and sheep. For LFA grazing livestock farms a reduction in costs, particularly feed, and increased
output for sheep led to a 47 percent increase in average income.

On specialist pig farms, income increased with a fall in throughput offset by input cost reductions and higher pig meat prices. Average incomes on specialist poultry farms rose due to a higher egg output, reduced costs and increased
income from diversified activities offsetting lower output from poultry meat.

The average Basic Payment across all farm types was £27,800, which was little change compared to 2018. This reflects the very similar Euro / Sterling exchange rates in the September of each year when the payment rates are determined.

Click link below for full report https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/944352/fbs-businessincome-statsnotice-16dec20.pdf