Agri-Shop Ltd
Farminguk
30 July 2016 | Online since 2003
Less co2 Limited


22 February 2013 10:31:31|Finance,News

Farm incomes reveal pressure as costs continue to rise


As 86% of Welsh farmers have reported a decrease in farm business income, farm input costs have risen in the last six months according to reports. The costs of producing food - categorised under feed, fuel and fertiliser - has 'rocketed' and is impacting heavily on farm businesses across all sectors.
97% of survey respondents reported a rise in feed costs over the last 12 months, 96% of farmers reported rising costs of energy and fuel and 83% reported a rise in fertiliser costs over the same period.
And in a separate report, the overall inflation of 4.39% reflects a period of some instability, with significant increases in inflation seen for feed and animal health products (16.9%), fuel (11.2%) and seed (10.2%). The only area to have experienced deflation is machinery (-6.4%).

The figures show an increase from AgInflation of 3.38% recorded for the year from August 2011 to August 2012.
"Unfortunately the results of the survey will come as no surprise to the majority of Welsh farmers, particularly those farming in the uplands" said John Owen, NFU Cymru LFA board chairman.
"The combined effects of increasing production costs on farms, continued low lamb prices and the repercussions of the extremely poor weather conditions that farmers have had to cope with over the last 12 months have left many upland farmers in Wales struggling to survive."
Clarke Willis, AF Group CEO, said: "While the costs of cereal and oilseed rape production have risen, inflation has been lower than for other enterprises as fertiliser and chemical costs have both seen increases of less than 1%. The dramatic increase in the cost of potato production has been driven by the limited supply of potato seed following last year’s very poor harvest."
"The rising cost of fuel has affected all sectors and rising animal feed prices have caused significant increases in production costs for livestock and dairy farmers.
"Machinery is the only input to have experienced deflation in the last six months. Workshop labour costs have decreased and the price of genuine and non-genuine wearing parts has also fallen or remained static."

John Owen said: "The Welsh Government’s continued refusal to recognise the difficulties and constraints associated with farming in the hills and uplands of Wales is most regrettable."
"With 80% of the agricultural land in Wales designated as LFA, these support payments have been critical in ensuring the continued viability of livestock farming in the uplands and have been a much needed source of income for many of our rural communities."
"The loss of targeted direct support will come as a huge blow to our upland areas in 2013 and it's extremely sad that Wales will be the only part of the UK that does not offer dedicated and targeted support to its hill and upland farmers."

Download

0 Comment

loginuserlogo
Name

Please enter your name


Email

Please enter your email

Please enter valid email


Comment

Please enter your comment


Post Comment

Your comment has been submitted successfully. Please wait for admin approval.


Comments

No comments posted yet. Be the first to post a comment


New Zealand | 29 July 2016
Robbery at the Kensington Avenue dairy - Waihi

At 12.50pm today, Thursday 28 July, a man entered the Kensington Avenue dairy in Waihi armed with what appeared to be a pistol. He is described as Maori or Polynesian of solid build who was wearing a ...


France | 29 July 2016
French plans for origin labelling slammed by dairy and meat processors

France is to trial mandatory country of origin labelling for two years. Dairy and meat processors have heavily criticised plans to introduce origin labelling in France. EU Health Commissioner Vy...


Canada | 29 July 2016
Canadians given go-ahead to buy another dairy farm

Canadians are continuing to buy into New Zealand dairy farming with the purchase of a property in the Maniototo, Otago. Last year a report by KPMG showed Canadian investors were the biggest foreign...


Uganda | 29 July 2016
Will tax cuts on agriculture machinery spur sector?

To encourage more people to get into agribusiness, government in the financial year that started on July 1st decided to strike down 18% Value Added Tax (VAT) on the supply of machinery used for the pr...


USA | 29 July 2016
Scientists call for increased federal investment in sustainable agriculture

Based on a new analysis of federal funding from the US Department of Agriculture, researchers say there is an urgent need for increased investment in research and development aimed at making sustainab...



Trending Now

Viewed
Discussed


Top stories you may have missed
closeicon
Username
Password