Full-time farm incomes rise

DEFRA's farm income figures have revealed a mixed year for the industry, with arable farmers celebrating a bumper year while livestock farmers experienced a torrid 12 months.

Overall figures show total income from farming per full-time person increasing by 8.7 per cent in real terms to £13,349 during 2007.

Total income from farming in the UK is estimated to have risen by 5.7 per cent in real terms, to £2.54 billion.

However, separate figures showing Farm Business Income for England in 2007/8 paint a different story for some sectors.

They show that the average pig farmer made a loss of over £4,000 a year while poultry farmers have seen profits slashed by more than 90 per cent.

The grassland livestock sector suffered as a result of outbreaks of foot-and-mouth and bluetongue, with incomes falling 34 per cent for lowland livestock farmers, and 44 per cent for hill farms, to just £8,700 and £5,900 respectively per farm.

NFU president Peter Kendall said: "We desperately need to bring the industry back into balance, through a phased increase in producer prices for beef, lamb, poultry, eggs and pigs.

"The alternative will be the emergence of a boom/bust cycle, which could de-stabilise the arable sector as well as ultimately fuelling food price inflation by leaving us dangerously dependent on increasingly expensive imports."

The arable and dairy sectors were unquestionably the winners in 2007, with output values up by 26 and 13 per cent respectively.

The increases were largely a result of increased demand for dairy products, resulting in increased farmgate prices as well as increased demand for cereals, allied with poor harvests around the world and growing demand globally for biofuels.

While incomes have increased, production costs and fuel costs have rocketed, leaving many farmers making far less money than in 2006.

Input costs increased by 7.8 per cent, with a significant increase for animal feed, up 17 per cent, following the high cereal prices.

Energy and fertiliser costs also increased by 6.6 per cent and 10.6 per cent respectively.

Food and Farming Minister Jeff Rooker said he was 'encouraged' by the figures that were 'testament to the resilience of the industry'.