East Anglian farmers have seen profits over the past year slump by £48 an acre and many are earning less than the minimum wage – these are two of the stark findings from a comprehensive survey of the 2004 harvest figures undertaken by chartered accountants Larking Gowen.
This is the ninth such survey compiled by Larking Gowen and covered 110 farms mainly across Norfolk and Suffolk, with representation from Cambridgeshire and Essex - representing approximately 65,000 acres.
“These are very hard times for farmers and with the forthcoming sugar beet reforms there is an uncertain future,” said Larking Gowen partner, David Missen.
The main findings of the survey are:
profits have slumped by £48 an acre, returning to the levels experienced between 1998-2002
the 2004 harvest saw a combination of a poor growing year and an expensive harvest together with significantly lower commodity prices
new single payment subsidy but probably less money and definitely arriving later
profits below levels of subsidy payments
continuing diversification, but slow progress
livestock returns falling slightly despite better profits from pig units
“Off farm” income from diversification continuing to rise sugar beet regime
reforms point to serious problems in the near future.
average farmer now earning just over £4 an hour
“During the year there were significant falls in cash returns for two major crops, wheat and barley,” said David Missen. Wheat was £55 lower per acre at £238, while the cash yield from barley dropped from £213 to £177 per acre.
“Sugar beet is another crop vital to our region and yields and prices were virtually static at 23.5 tonnes per acre and £698 respectively.
Looking to the future Larking Gowen, who have offices in Norfolk, Suffolk and Essex and whose clients farm over 300,000 acres is predicting an increasingly ‘cash starved’ industry which is becoming unable to fund longer term capital investment or make pension provisions.
“The figures show that the average farmer is probably earning around £4 an hour, less than the minimum wage and significantly less than a farm worker,” said David Missen
“Many could probably sell up and get a better living from investment income but the good news is farmers are not quitters – it is just not in their blood.”
