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Rising costs result in drop in UK farm incomes

The value of tatties decreased in the year.
The value of tatties decreased in the year.

UK farm incomes decreased last year due to rising costs and a drop in the value of potatoes and oilseed rape.

Figures released from the UK farming ministry Defra reveal UK farmers’ income decreased by 17% last year, with the sector’s contribution to the UK economy down 6% to £9.6 billion.

Total income from farming (Tiff) decreased by 17% to £4.697bn, while average individual incomes fell by 19% to £23,957.

In a report, Defra said the main contributors to the decrease in Tiff were a £509 million increase in the price of animal feed, a £358m increase in the costs of goods and services, a £116m increase in fertiliser costs and £110m increase in energy and labour costs.

“Conversely the value of the output of potatoes fell by £220m and oilseed rape by £122m,” added Defra.

The overall output from crops was up by almost 2% to £9.388bn, with the value of wheat up £95m to £2.084bn.

Barley production was below the five-year average due to decreased acreage and yields. However the overall value was up to £957m as a result of a 10% boost in prices.

The value of oilseed rape fell to £643m due to lower production and prices, while potatoes decreased in value to £641m with a 19% fall in production blamed on the summer drought.

Challenging weather was blamed for a £38m decrease in the value of vegetables to £1.417bn.

Fruit fared better with a slight increase in production resulting in a £17m boost in values to £769m.

The total value of output from the livestock sector was 2.7% higher at £14.8bn, with the value of milk up £136m to £4.487bn.

The value of eggs was up £17m to £641m, while the value of beef increased by £43m to £3.031bn.

Pigmeat decreased in value to £1.250bn, due mainly to a 7% drop in prices as a result of overproduction early in the year.

The value of sheepmeat increased by £57m to £1.258bn, while poultry meat rose by £208m to £2.626bn.

The NFU south of the border said the figures demonstrated the need for Westminster’s Agriculture Bill to include measures to help farmers manage volatile weather.