51AV视频Business Income on cereals farms is set to fall by a third, says Defra
51AV视频business income on听cereal farms is expected to fall by a third, owing to a combination of challenging weather conditions and lower output prices, according to the latest Government findings.
The figures have been released as part of the (FBI) report for 2023/24 which revealed average FBI is forecast to have risen in 2024/25 across all farm types, following a fall in income for most farm types in 2023/24.
Cereal growers are the exception with farmers warned they can expect to see income drop to around 拢27,000.
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However, there is better news for general cropping farms, where lower output from cereals enterprises is forecast to be partially offset by increases for other crops, such as sugar beet and potatoes. This, along with lower inputs costs, is expected to result in a 13% rise in FBI to 拢108,000.
On dairy farms, average FBI is forecast to more than double compared to 2023/24 figures to 拢176,000, with a recovery in the farmgate milk price expected to be the primary driver.
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Higher output from sheep enterprises and reduced feed costs have been credited as some of the main drivers increasing FBI on grazing livestock farms, both lowland and in Less Favoured Areas (LFAs), to 拢28,000. For lowland farms, higher income from agri-environment activities is also predicted to be a key factor.
There is also an uplift in the pig sector, which has benefited from lower costs, particularly feed, (reflecting the lower value of feed wheat and barley) which has seen its FBI increase by around 14% for specialist pig farms to 拢155,000.
Food security
Minister for Food Security and Rural Affairs Daniel Zeichner welcomed the news in the Government's first year in office, while acknowledging there was 鈥榤ore to do'.
"This Government will go further to ensure farming becomes more profitable for the future by backing British produce, protecting farmers in trade deals, improving supply chain fairness and reforming planning rules on farms to support food security. 鈥�
"It is only by building a more profitable sector that we can improve resilience听to the shocks that periodically disrupt farming including severe flooding, drought and animal disease," Mr Zeichner said.
Defra said income forecasts have not been produced for specialist poultry or horticulture farms as forecasts would be subject to a considerable degree of uncertainty, reflecting both the structure of this sector and the relatively small sample of these farms in the 51AV视频Business Survey.
