The Farm Business Income forecast for 2018/19 shows that all farm sectors have seen a decrease in income, except for cereals.
The weather is expected to have been a key influencing factor for incomes across farm types in 2018/19, the new Defra document shows.
However, the increase in the cereals sector is due to increased cereal prices, driven by growing demand as a result of the dry weather in 2018.
The rise in prices is predicted to be the main driver increasing average income by around 13 percent to £73,000.
But increased crop prices led to higher feed costs for livestock farms and many also had to purchase more feed due to the cold late spring and summer drought.
Specialist pig farms are expected to have the largest decrease in income with a forecast average income of around £1,000.
NFU chief economics adviser, Dr Andrew Francis said the decrease in Farm Business Income highlights how 'exposed' agriculture is to 'market volatility'. He emphasised the continued need for government measures to manage this.
“This year is set to be incredibly challenging for farmers and the continued uncertainty is already impacting farm businesses,” Dr Francis said.
“It is vital a deal is agreed with the EU to ensure there is an orderly Brexit and we have been clear about what we believe are the crucial elements of a healthy and productive post-Brexit future for British farming.
“If the government took the position to unilaterally lower import tariffs on food, this could lead to food coming into the country which may have been produced to lower standards than are legally required here.
“If the government allows sub-standard food imports to undercut British farmers, that could have very serious implications for the supply of the safe, traceable and affordable food British farming provides for the nation,” Dr Francis added.
