Government figures released today show a decrease of 24% in the total income for farming, making it a year-on-year (2014 to 2015) loss of £1,247 million.
The total income of people working on farms fell by 24% to £20,668 million, and agriculture’s contribution to the UK's GDP dropped by £1,129 million – an 11% decrease.
Numerous factors have caused the fall in income for farmers, including lower commodity prices and reduced direct payments due to an unfavourable Euro/Sterling exchange rate. The rising cost of rent, interest rates and labour also contributed to the decrease.
However, total factor productivity increased by 0.7% between 2014 and 2015. This was driven by high levels of production in 2015, including record yields for cereals.
CLA Senior Business Adviser Dr Charles Trotman said: “Although the statistics show that productivity has increased, this is offset by market volatility. The figures highlight the need for economic certainty and market security in agriculture as we move towards leaving the EU. Post-Brexit it is vital that farmers have improved resilience in the sector to avoid further harm to the rural economy.”
