NFU Cymru Welcomes Farm Income Figures

NFU Cymru has today welcomed figures published by the Welsh Assembly Government which show an increase in Total Income from Farming in Wales from £106.5 million in 2008 to £170.4 in 2009, an increase of 60%. Also according to the Farm Business Income survey, returns to individual farm businesses, incomes for ’all farm types’ have risen from £31,300 in 2008-09 to an estimated £33,600 in 2009-10.

Commenting on the farm income figures, NFU Cymru President, Ed Bailey said, "After very many years of low profitability, today’s news is very welcome and hopefully will allow farmers to carry out much needed re-investment in their businesses, which is essential in order to improve their productivity and to secure greater environmental benefits."

Mr Bailey did however sound a note of caution saying, "For the second year running we have seen the benefits of a weak pound on farm incomes. This ongoing weakness of the pound against the euro and other currencies has kept the cost of imports high and has also maintained the value of farmers’ direct payments. Exchange rates will continue to play an important role in determining the fortunes of the farm sector in 2010.

"Reliance on currency fluctuations is however a fickle basis for determining farm incomes and whether the positive picture of the last two years can be maintained through 2010 remains to be seen, especially given the apparent difficulties that some countries in the euro zone are currently experiencing."

Mr Bailey said, "We must also remember that not all sectors are doing so well and I would point to the continuing difficulties in the dairy sector which has seen a drop of 10% in output value as a result of a fall in farmgate milk prices in the first half of last year."