Farming News - Weather key influence of farm business income Defra report reveals
Weather key influence of farm business income Defra report reveals
In 2018/19, average Farm Business Income was lower for dairy, grazing livestock, both lowland and those in Less Favoured Areas (LFA), pig and poultry farms. The weather was a key influencing factor for incomes across farm types; a very cold, late spring and extremely hot, dry summer.
The weather conditions led to reduced yields on cereal and general cropping farms although these were mitigated by higher prices for some crops, particularly cereals. The average income for these farm types increased by 8 percent and 22 percent respectively.
On dairy farms, lower average income was driven by higher input costs, particularly feed influenced by the lack of grazed forage due to the weather conditions and increased cereal prices. This more than offset a 7 percent increase in output from milk.
Notable increases to feed costs were also a major influence on average incomes for grazing livestock farms, which fell by 39 percent for lowland farms and 42 percent for those in the LFA.
The average Basic Payment across all farm types was £27,300, virtually no change on 2017. In recent years the reduced strength of the pound increased payment rates and helped drive up income for some farm types. However, in 2018 the payment reflected the very similar Euro / Sterling exchange rates in the September of each year (2017 and 2018) when the payment rates are determined.
Read the full report here: