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on their agricultural activities and, as a result, a very high proportion of their Farm Business Income was comprised of the Single Farm Payment and, to a lesser extent, environmental payments including Tir Mynydd [2]


. It should be noted that there is apparently no data on


income from diversification. Even lowland cattle and sheep producers made less than a fifth of their total Farm Business Income from their purely agricultural activities. The only source of information by size of dairy farm relates to farms of under 100 ESU and over 100 ESU [3]


. This is not particularly


helpful in that anything less than 100 ESU could be classified as a medium-sized unit or less while anything over 100 ESU is defined as large. In fact, the average size of those dairy farms below 100 ESU during the twelve months in question was 77 ESU while those above 100 ESU averaged 250 ESU.


Figure 2: Welsh Dairy Farms - Breakdown of Total Farm Business Income


10 20 30 40 50 60 70


0 Agriculture Environmental Payments Single Farm Payment Interestingly, the share of total Farm Business Income constituted


by the Single Farm Payment appears, at almost 60 per cent, to be higher in dairy farms of over 100 ESU than those below 100 ESU. In Scotland, the Farm Business Survey is known as the Farm


Accounts Survey. Unfortunately, data for 2009-10 does not appear to be currently available so the data relates to 2008-09. However, Table 5 gives some indication of how Scottish livestock farmers’ Farm Business Incomes are expected to have moved between 2008-09 and 2009-10. A reduction in the output value of milk produced was the main element in the fall in dairy farms’ Farm Business Incomes in 2009-


Table 5: Farm Business Incomes of Scottish Livestock Farms 2008-09 and 2009-10


2008-09 2009-10 £ per Farm


Specialist Sheep (LFA) Specialist Beef (LFA) Cattle and Sheep ( LFA) Dairy


Lowland Cattle and Sheep


Mixed


16,268 26,923 27,896 78,446 23,969


45,317


29,907 38,335 44,390 58,746 30,294


40,185 £


Increase 13,639


11,412 16,494 -19,700 6,325


-5,132 %


83.8 42.4 59.1 -25.1 26.4


-11.3


Source: Scottish Farm Income Estimates 2010 - Part 4 (Published 27 January 2011)


PAGE 16 MARCH 2011 FEED COMPOUNDER


Less than 100 ESU Over 100 ESU


Figure 3: Scotland - Source of Farm Business Income by Type of Farm 2008-09


100 150 200


50


-150 -100 -50 0


Specialist Sheep (Less Favoured Areas)


Agriculture LFASS


Specialist Beef (Less Favoured Areas)


Cattle & Sheep (Less Favoured Areas)


Other Environmental Payments Dairy


Lowland Cattle & Sheep


Diversification Mixed Single Farm Payment Here, again, we note the unprofitability of every type of farm with


the exception of dairying, when measured in terms of farm output less farm inputs. Farm business incomes in all other types of farming were supported by a variety of environmental payments but their main source of revenues was the Single Farm Payment. Even on the average dairy farm, the Single Farm Payment constituted almost 43 per cent of total Farm Business Income. It is worth, at this stage, examining whether there were any significant differences between dairy farms when measured by size. There were fifty-five dairy farms included in the 2008-09 survey, of which forty were classed as ‘Large’. As far as the Single Farm Payment is concerned, the small Scottish dairy farmers received, on average, 2.2 per cent of their Farm Business


Figure 4: Derivation of Farm Business Income of Scottish Dairy Farms by Size 2008-09


100


10 20 30 40 50 60 70 80 90


-10 0


Agriculture


Agri-Environmental Payments Including


Less Favoured Areas Support Scheme (LFASS)


Other Agri-


Environmental Payments


Diversification


Single Farm Payment


10 while an increase in the output value of cattle and, in particular, sheep contributed to the increase in Farm Business Income for all grazing livestock farm types. The value of single farm payments was also higher than the previous year for all farm types, due to a more favourable Sterling : Euro exchange rate; the impact of this increase was greater for livestock farm types in the less favoured areas where grants and subsidies make up a higher proportion of total output and of Farm Business Incomes overall.


Small Medium Large


[2] The Tir Mynydd scheme supports and maintains livestock production in the less productive farming areas of Wales. The scheme is funded by the Rural Development Plan for Wales 2007-2013 which is financed by the Welsh Assembly Government and the European Union.


[3] For each activity on a farm such as wheat production or dairy cows, a Standard Gross Margin (SGM) is estimated, based on area or the number of heads together with a regional coefficient. The sum of such margins in a farm is its economic size, expressed in European Size Units (ESU). One ESU equates to a Standard Gross Margin of €1,200.


Percentage of Total Farm Business Income by Cost Centre


Percentage of total Farm Business Income by Source


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