Farm business income figures decrease
Significant rises in farm input costs have cancelled out firmer livestock prices - NFU Cymru has said today following the publication of annual farm income figures by the Welsh Government.
Average farm business income figures on LFA (Less Favoured Area) livestock farms decreased by a startling 22%, with rising input costs and a decline in average Single Payments receipts being attributed to the decline.
NFU Cymru President Ed Bailey said, "These figures clearly show the fragile state of livestock farming in the LFA areas of Wales. Whilst we have seen a welcome increase in market prices the sad fact is that increased costs have more than cancelled out these gains.
"These LFA figures are particularly worrying because they include the support received through Tir Mynydd. With 2012 being the final payment under Tir Mynydd and no sign of production costs decreasing I am concerned that incomes may continue to fall within the LFA areas of Wales.
"These figures should act as a wake-up call to the Welsh Government. Earlier this year I asked the Deputy Minister to extend the Tir Mynydd scheme beyond 2012, with the publication of these figures today I ask again that the Deputy Minister reconsiders his decision not to provide dedicated support to the LFA areas of Wales through the opportunity available to him under the Wales RDP."
On average farm incomes in Wales fell by 12% with lowland livestock farms seeing a drop in income of 8%. Dairy farms income increased by 12% to partly make up for the large fall in incomes experienced by the sector in 2009-10.
Ed Bailey said, "Lower profitability will mean that farmers will be more reliant on their direct payments this year. The CAP (common Agricultural Policy) continues to play a crucial part in supporting Welsh agriculture and the Single Farm Payment is an effective tool that helps farms cope with market volatility. Farmgate prices may be stronger, this has returned some confidence to farmers in Wales, but unfortunately these price increases are not reflected in the bottom line.
"I applaud the staff of the Welsh Government on ensuring that 88% of farmers will receive their Single Farm Payment on the first day of the payment window and that 90% will be paid by the end of December. I hope that the remaining 10% will not have to wait too long, this support will be vital to cover feed and fuel costs this winter."
