TMMF Ltd
Farminguk
30 September 2016 | Online since 2003
Auto Trader Ltd


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


Ireland | 29 September 2016
Irish dairy farmers seek €11m under EU milk reduction scheme

Irish dairy farmers have sought €11m to reduce milk production during the final three months of the year under the European Union’s Voluntary Milk Reduction Scheme. This is according to the Ministe...


USA | 29 September 2016
U.S. cattle prices continue to erode as supplies rise

Rising beef supplies and large supplies of competing proteins are eroding prices on fed cattle headed for slaughter, and market volatility continues to be the focal point of the U.S. market. In the...


USA | 29 September 2016
Farmers suing Syngenta over GMO corn granted class action status in federal court

A federal judge has granted class action status to at least 440,000 farmers accusing agrochemical giant Syngenta of selling genetically modified corn seeds and costing them billions of dollars in lost...


Australia | 29 September 2016
Global dairy prices lift as farmers slash production

Global dairy prices are rising as farmers around the world cut back on production, but local prices are still below the cost of production for many south-east Australian farmers. The previous Globa...


Puerto Rico | 29 September 2016
Puerto Rico Experiences an Agricultural Renaissance

For the first time in nearly 30 years, Puerto Ricans are buying rice, vegetables and traditional crops such as plantains and pineapples, that are produced on the island. As new farms spring across ...



Trending Now

Viewed
Discussed


Top stories you may have missed
FarmingUK
FarmingUK Logo

FarmingUK

Farm subsidy payments funded by the UK taxpayer are being paid to millionai...


FarmingUK
FarmingUK Logo

FarmingUK

Labour will end the badger cull and prioritise ending bovine TB, Shadow Def...


FarmingUK
FarmingUK Logo

FarmingUK

A herd of rare White Park cattle could die out if its owners do not urgentl...


FarmingUK
FarmingUK Logo

FarmingUK

The UK government is "failing" to support farmers in the long-term accordin...


FarmingUK
FarmingUK Logo

FarmingUK

Retailer Co-op has announced that from May 2017 all of its bacon and lamb w...


FarmingUK
FarmingUK Logo

FarmingUK

Over 50 wildlife organisations have compiled a stock-take of all the UK's n...


FarmingUK
FarmingUK Logo

FarmingUK

In the run up to the EU farm ministers meeting the agricultural sector have...


FarmingUK
FarmingUK Logo

FarmingUK

The RPA must iron out a number of problems that still exist with 2015 BPS p...


FarmingUK
FarmingUK Logo

FarmingUK

Tourism businesses in the countryside are being held back due to the uncert...


FarmingUK
FarmingUK Logo

FarmingUK

A 24 point action plan aimed at revitalising Scotland's sheep sector after ...


closeicon
Username
Password