Average incomes are estimated to have almost doubled on dairy farms for the 12 months from March 2017 to February 2018, according to new forecasts released today.
According to new farming income forecasts released on Wednesday (28 February), a combination of higher milk prices and increased production are expected to boost incomes of dairy farmers to an average of £99,000 per farm.
Although the average farm gate milk price in January 2018 fell 3.2% from December 2017, it still remained more than 14% above the average price in January 2017.
Meanwhile, the income forecasts show cereal farmers are also expected to see higher average incomes.
This is helped by improved yields and firmer cereal prices, with the latter driven by a more favourable exchange rate.
On 16 February, the government announced a range of measures including compulsory milk contracts and a £10m collaboration fund to provide greater security for farmers.
The measures are hoped to help small producers compete alongside larger businesses in the food supply chain.
