FACTS FROM FIGURES FARM INCOMES ACROSS THE UK By Roger W Dean, Dean Agricultural Associates In October 2017, these data were revised with more up-to-date
There is no greater area for debate, in the context of Brexit, than that of where and how agriculture in the UK will end up as part of the British economy. The only indicators so far are reports that Environment Secretary Michael Gove has transformed from a ‘shy green into a full-throated environmentalist’. It is true that a number of measures have been passed into law, although these have been single interest issues such as action on plastic bottles, CCTV in slaughter houses, a ban on bee-harming pesticides and the promise of a post-Brexit ‘green revolution’, with a new independent environmental watchdog as the centrepiece reform. But what of agriculture’s future place in the economy at large? There are strong indications of an anti-subsidy ‘ramp’ building up; indeed, opposition to subsidies is said to have been a major issue leading to the leave vote at the referendum. What happens to farm support will be a major determinant of the future shape of the agricultural supply industry. Roger Dean has been looking at the implications for the devolved regions of the United Kingdom.
In the last issue of this publication, the part played by ‘subsidies’ in Farm Business Incomes in England was discussed with the overall conclusion that subsidies constituted a substantial part of total funds accruing to English farmers in 2016-17.
statistics, enabling a comparison to be made of Farm Business Incomes in 2016-17 and the previous year, 2015-16. The latter constituted a comparatively poor year for livestock farmers in England and, indeed, for English farmers in general. The average Farm Business Income for dairy farmers plummeted from £83,800 in 2014-15 to £43,900 in 2015- 16 and there were substantial falls for farmers with grazing livestock in the lowlands but not in the Less Favoured Areas. Specialist pig and poultry farmers also experienced a sharp fall in Farm Business Incomes in 2015-16 although it should be borne in mind that the sample sizes for specialist pig and poultry farms are relatively small with average incomes subject to greater variation. Finally, the Farm Business Incomes of mixed farms, not previously examined in this present series of articles, also fell following a decline in the previous year. It needs to be taken into account that the figures for each type of
farm are averages and, as the old, slightly modified saying goes, ‘there are lies, there are damned lies and there are averages’. The data for 2016-17 were revised in the last quarter of 2017 and the composition of Farm Business Incomes in England modified. Farm Business Incomes were revised upwards for all farm types with the single exception of specialist poultry; however, this is subject to the proviso already made concerning specialist pig and poultry farms. The revised Farm Business Incomes are shown in Table 1. Even though the data for 2016-17 represents a modest improvement
on 2015-16, the overall picture is pretty dire. The average Farm Business Income in England during 2016-17 for one of the reputedly most prosperous sectors of English farming – dairying – comprises just 30 per cent made up of income from what may be called the sector’s
Table 1: Revised Farm Business Incomes in England by Farm 2016-17
Type of Farm/ average per farm
£ Dairy
Grazing Livestock - Lowland Grazing Livestock - LFAs Pigs
Poultry Mixed
All Farms (1)
15,000 -8,700 -9,400 40,300 26,100 -12,600 -2,500
Agriculture
% of Total 30.0 -54.0 -34.8 69.8 48.4 -43.9 -6.6
Agri-environmental Payments
£
2,800 3,000
11,200 1,900 900
4,300 4,300
% of Total 5.6
18.6 41.5 3.3 1.7
15.0 11.3
Diversified Income £
6,900 6,500 2,400 4,800
19,200 9,300
11,000
% of Total 13.8 40.4 8.9 8.3
35.6 32.4 28.9
Basic Payments Scheme
£
25,300 15,300 22,800 10,700 7,700
27,700 25,200
% of Total 50.6 95.0 84.4 18.5 14.3 96.5 66.3
Source: DEFRA ‘Farm Business Income by type of farm in England 2016-17’. Published 26 October 2017 (1) All farms, including those described in the main body of the table. Data has been inputted to correct rounding errors.
PAGE 20 JANUARY/FEBRUARY 2018 FEED COMPOUNDER
Farm Business Income
£
50,000 16,100 27,000 57,700 53,900 28,700 38,000
% of Total 100 100 100 100 100 100 100
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