Defra’s latest figures for farm business income show big gains in the last year for arable farms and a substantial drop in income for livestock farms. The income figures presented are based on results from the Farm Business Survey. Figures are for March/February years with the most recent year shown therefore ending February 2011.

 Key results

• In 2010/11 average incomes increased substantially in both the arable sector and on mixed farms compared with 2009/10. There was a smaller increase in incomes (12%) on dairy farms.
• Average incomes fell in the pig, sheep and beef sectors as well as on horticulture farms.
• There is considerable variation in farm business income both between and within farm types.
• The Single Payment still makes an important contribution to average farm incomes for many farm types, although less so in 2010/11 than in previous years.

Farms in the arable sector (cereals and general cropping) and mixed farms saw substantial increases in income with the average increasing by between 57% and 107%. This was largely due to much higher prices for cereals, oilseed rape and potatoes compared to the previous year. In addition, improved planting conditions in the autumn of 2009 allowed a return to winter cropping, resulting in higher average yields.

Incomes also increased, although to a lesser extent, on dairy farms. Total farm output was higher due to improved milk prices for the year ending February 2011 as well as the increased output from the cropping enterprises that exist on these farms. This was partly offset by higher costs, notably for feed and fertiliser, resulting in an average farm business income of £66,200, an increase of around 12% compared to the previous year.

Table - Average farm business income by farm type (£/farm), England

Average incomes across the remaining livestock sectors fell by varying degrees. There was only a very slight decline on specialist poultry farms, this being primarily the result of higher feed prices. On specialist pig farms average incomes were over a third lower at £44,400. This was due to lower prices for finished pigs combined with higher input costs, particularly feed. For grazing livestock farms in both the lowland and the less favoured area, incomes fell by around 26% and 15% respectively. Although average prices for sheep and finished lambs were firmer in 2010/11 than in the previous year, average prices for finished and store cattle across the 12 months were lower. These, combined with higher input costs more than offset the higher sheep prices, resulting in an overall fall in farm incomes for these farm types.

Incomes fell by almost a quarter on horticulture farms. Average farm output was lower due to a fall in output for both field and protected vegetables which were only partially offset by a higher output for soft and top fruit.

More information from the Defra website