According to provisional figures, farm profits have increased around 12 to 15% on last year
Farm incomes in 2016 are expected to be higher than those last year and could further rise in 2017, according to industry consultants Andersons.
According to provisional figures, their report for the current year said farm profits had increased around 12 to 15% on last year and total income from farming could rise a further 15% in 2017.
"In terms of prices the currency boost has been seen in many farming sectors – grains, beef, sheep, pigs and to a certain extent, milk. In other sectors such as poultry, some fruit and vegetables , trade plays less of a part in setting prices and the weaker sterling has produced less of an effect.
"One obvious beneficiary has been BPS payments, with the change in the conversion rate adding around £350 million directly to the TIFF figures. The downside is that imported cereals and soya has become more expensive, meaning prices for winter 2016-17 will not be as low as once thought, but they may still show a reduction on the previous winter.
"Assuming a relatively weak currency at today’s levels then the 2017 year could result in another improvement in TIFF. Prices will be at higher levels for the entire year rather than just half of it, as was the case for 2016. The underlying market conditions also look favourable for continued price increases in sectors such as dairy and pigs."
But farmers in Wales have endured a tough financial year according to figures showing that incomes have fallen. Average farm business income dropped by 23% to £22,000 in 2015-16 compared to the previous year.
"These figures show just how much of a drop in income we as farmers have to deal with," Farmers' Union of Wales vice president Brian Walters said.
"We can't stress enough how much farming matters as the drop in our income will also mean a knock-on effect on our rural businesses."
A Welsh government spokesman told WalesOnline: " It has been a difficult year for some farmers, however it is important to note that farm incomes fluctuate year on year for many different reasons and Welsh farmers are adept to managing this change. The low price of milk has been recognised, with significant EU financial support introduced to help dairy farmers through this difficult period."