Eurostat, the European Union’s statistical service in Luxembourg, has revealed statistics showing farmers’ incomes in the UK fell by 6.4 per cent last year; however, analysts say the fall, the largest year-on-year in the EU, was significantly affected by a drop in the exchange rate. image expired

Furthermore, input costs, which are up by 13.5 per cent on average, volatile markets and the effects of the spring drought will compound the challenges farmers face. Nevertheless, polls among farmers show that attitudes within the industry are positive and many UK farmers have been steeled by stronger price prospects for agricultural commodities, which should provide a cause for long term optimism.

An NFU Brussels spokesman commented, “The Eurostat data shows that since 2005, farm income changes in the UK have actually outperformed the EU average.” Eurostat data does reveal that, while farm incomes in the EU as a whole have risen by 11.2 per cent since2005, in the UK, incomes have risen by 21.3 per cent.

The eurostat statistics showed agricultural income per worker increased by 12.6 per cent across the EU in 2010. It said stronger prices for both crop and livestock products in the EU were the main contributor to the rising value of farm output.