Total income from farming falls 7.8 percent between 2015 to 2016

The report shows that between 2015 and 2016, total income fell by 7.8%, representing £311 million, to £3,682 million
The report shows that between 2015 and 2016, total income fell by 7.8%, representing £311 million, to £3,682 million

Total income from farming has fallen 7.8 percent between the years 2015 to 2016, according to new government data.

The report also shows agriculture's contribution to the national economy. In 2016, agriculture contributed 0.47% or £8,237 million to the national economy (Gross Value Added), a fall of 6.0%, representing £526 million, in real terms.

The latest data released on Thursday (30 November) presents the second estimate of Total Income from Farming (TIFF) for the United Kingdom for 2016.

It is an improved estimate based on additional data that replaces the figures published in April 2017. Estimates for earlier years have also been revised due to the availability of additional data.

TIFF is the total profit from all UK farming businesses on a calendar year basis. It measures the return to all entrepreneurs for their management, labour and capital invested.

The report shows that between 2015 and 2016, total income fell by 7.8%, representing £311 million, to £3,682 million.

The value of all outputs fell by 4.8% to £23,267 million. This was mainly driven by falls in both volume and value for cereals and milk.

The key contributors to the change were the falls in the value of wheat by £432 million, milk by £398 million and oilseed rape by £170 million. In contrast, these were somewhat offset by an increase in direct payments of £273 million, potatoes by £171 million combined with reductions in animal feed costs of £181million and fertiliser costs of £142 million.

The cost of intermediate consumption fell by 4.2%, due to lower prices and a general fall in volumes used.

A weaker pound led to an increase of 18% in the value of payments under the Basic Payment Scheme.