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Table 3: Specialist Poultry Producers’ Farm Business Income by Cost Centre and Size of Farm 2009-10 Source of Farm Business Income Agriculture


Agri-Environmental Payments Diversification out of Agriculture Single Farm Payment


Total Farm Business Income Part-time


£ per farm 17,310 1,163 3,005 2,743


24,222 %


71.5 4.8


12.4 11.3 100


Small


£ per farm 27,669 389


13,102 1,250


42,411 %


65.2 0.9


30.9 2.9


100 Large


£ per farm 119,183 1,071


10,188 8,638


139,079 %


85.7 0.8 7.3 6.2


100 All Sizes


£ per farm 49,974 705


12,373 3,274


66,326 Source: Table 6.14 of Farm Accounts in England 2009-10: Specialist Poultry Farms: Output, Input Costs and Income by Size Group


cent of the Farm Business Income from the Single Farm Payment; their ‘core activity’ actually contributing the smallest proportion of their income stream. Taking all performance bands into account, however, a small but significant chunk of Farm Business Income is constituted by the Single Farm Payment. In fact, this is not particularly surprising. Taking all specialist pig farms, the 2009-10 Farm Business Survey showed that the average enterprise in England had 17.3 hectares down to crops of which the most significant were winter wheat and winter barley along with oilseed rape and arable fodder crops. These would have been eligible for support under the arrangements preceding the introduction of the Single Farm Payment and would thus have qualified for the payment itself. In the case of specialist poultry farms, part-time or ‘hobby’ farms


make an appearance in that the Single Farm Payment constituted just over eleven per cent of total Farm Business Income in the twelve months ending in February 2010. Taking all poultry farms into account, however, less than five per cent of total Farm Business Income was made up of the Single Farm Payment. A particular feature of small specialist poultry farms is the extent


to which they appear to have gravitated towards diversification in their activities; in 2009-10, income from this source accounted for almost thirty- one per cent of total Farm Business Income. Indeed, this source of income accounted for 18.7 per cent of total Farm Business Income for specialist poultry farms as a whole, being made up primarily of rental incomes with contributions also coming from food processing and retailing. This tends to be reflected in specialist poultry farms categorised by their performance where those described as ‘medium’ performers derived more than a fifth of the Farm Business Income from diversification. However, it is clear that, from the point-of-view of both size and performance, the Single Farm Payment is of marginal importance.


We can now turn to the devolved regions of the UK. The Institute of Biological, Environmental and Rural Sciences


(IBERS) at Aberystwyth University is responsible for conducting the Farm Business Survey in Wales. A relatively new venture, IBERS brought together staff from the Institutes of Rural Sciences and Biological Sciences at Aberystwyth University, and the Institute of Grassland and Environmental Research (IGER).


Figure 1: Wales - Source of Farm Business Income by Type of Farm 2009-10


100


20 40 60 80


-40 -20 0


Hill & Upland Dairy Farms


Agriculture


Lowland Dairy Farms


Hill Sheep


Hill Cattle & Sheep


Agri-Environmental Payments Including Tir Mynydd


Upland Cattle & Sheep


Lowland Cattle & Sheep


Single Farm Payment Figure 1 shows that a very high proportion of total Farm Business


Income in all types of Welsh agriculture is derived from the Single Farm Payment. Even in the case of lowland dairy farms where 39 per cent of total


Farm Business Income was derived from the core dairying business, the average share of Farm Business Income constituted by the Single Farm Payment in 2009-10 was almost 57 per cent. In the case of hill and upland dairy farmers, the Single Farm Payment constituted two-thirds of total Farm Business Income. Hill farmers specialising in sheep or in cattle and sheep production appear to have made negative returns


Table 4: Specialist Poultry Producers’ Farm Business Income by Cost Centre and Performance Band 2009-10 Source of Farm Business Income Agriculture


Agri-Environmental Payments Diversification out of Agriculture Single Farm Payment


Total Farm Business Income Medium


£ per farm 66,618 671


19,599 4,272


91,159 %


73.1 0.7


21.5 4.7


100


£ per farm 75,287 1,437 8,336 4,273


89,334 High %


84.3 1.6 9.3 4.8


100


£ per farm 49,974 705


12,373 3,274


66,326


All Performance Bands %


75.3 1.1


18.7 4.9


100 Source: Table 7.14 of Farm Accounts in England 2009-10: Specialist Poultry Farms: Output, Input Costs and Income by Performance Band FEED COMPOUNDER MARCH 2011 PAGE 15 %


75.3 1.1


18.7 4.9


100


Percentage of Total Farm Business Income


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