United Kingdom-Farm incomes improve.

IT IS pleasing to see, after years in the doldrums, that UK farming incomes have increased by more than a third over the last 12 months.

Figures published by Defra show total income from farming rising from £2.54bn to £3.46bn in real terms.

After several years of low level profitability a sustainable increase is more than encouraging. As farmers we need profit, profits mean reinvestments and this in turn finds its way back into the rural economy.

I think we are all uncertain as to whether we can maintain these profits through 2009.

Much, I suspect, will depend on the exchange rate because a big chunk of our profits, certainly in the sheep sector.

The other thing none of us are sure about is the doom and gloom associated with the British economy. It would only be a fool who would guess the changes that can happen in consumption patterns. These factors, the low pound and the uncertainty that surrounds the consumer, will I guess dictate next year’s profits.

Out of all the different live stock sectors the sheep producer has faired best seeing their profits rise by a whopping 29 per cent. It is worth remembering that 40 per cent of all the lambs produced in the UK are exported mainly to central Europe.

Dairy farmers profits, and I say this tongue in cheek, went up by 25 per cent but since this report was published the poor old dairy farmer has had over 3p reduced per litre for his milk.

If this reduction continues I can see the profit that they have enjoyed over the