Table 4: Wales - Farm Business Income by Farm Type and Cost Centre 2016-17
Type of Farm/average per farm
Dairy Cattle & Sheep - LFAs
Lowland cattle & Sheep
All Farms Agriculture
12,800 -6,200 4,100
-1,900
Agri-environmental Payments
900
5,600 1,600
4,200 Source: Farm Incomes in Wales - published by the Welsh Government
farming, were nothing to write home about in the 2015-16 farm year, even if the dairy results in particular were a reflection of the market situation during the period under review. Table 4 shows the limited detail for Farm Business Incomes in
Wales in the 2016-17 farm year. As one would anticipate, the number of farm types is limited, being confined to dairying and cattle and sheep grazing both in the lowlands and in the less favoured areas. Table 4 shows that, while dairying appeared to generate a
respectable flow of funds via its core business in Wales, the sector was also a substantial recipient of monies from the Basic Payments Scheme. Lowland cattle and sheep farming was also ‘profitable’, once the Basic Payments Scheme was taken into account but cattle and sheep farming in the less favoured parts of the principality was unprofitable before other receipts were taken into account. Overall, taking all agricultural activities into account, core business generated an average loss per farm of £1,900 which, after taking non-core income into account, was converted into a £24,500 surplus. Forecasts of farm incomes for 2017-18 in Wales are due to be
published in March 2018. Final results for 2017-18 are expected to be published at the end of 2018. Finally, to Northern Ireland. Between 2014-15 and 2015-16, the
latest year available, Farm Business Income increased in two out of the seven main types of farm covered by the Farm Business Survey. The two farm types in Northern Ireland that showed an increase in average Farm Business Income were General Cropping and Cattle & Sheep (Less Favoured Area) farms. Income results show that average Farm Business Income increased by £4,009 on the former and by £1,522 on the latter class of farms (Table 5). It will be remembered that, in Northern Ireland from 1 January
Table 5: Farm Incomes in Northern Ireland 2015 - 16
Type of Farm Pigs
Dairy (1)
Cattle & Sheep - LFAs Cattle & Sheep - Lowland Mixed
All Farm Types
Farm Business Income 18,552 11,925 16,837 13,456 15,340 14,788
Less Direct Payments 12,552 21,911 29,093 22,447 18,620 24,972
Source: Farm Incomes in Northern Ireland 2015-16 - DAERA (1) Based on Farm Business Income and Direct Payments as shown, not DAERA calculation.
PAGE 22 JANUARY/FEBRUARY 2018 FEED COMPOUNDER
Indicative Return from Farming Actities 6,000 -9,986
-12,256 -8,991 -3,280
-10,184
2005, direct payments to farmers were replaced by decoupled payments under the Single Farm Payment scheme and, subsequently the Basic Payment Scheme from 1 January 2015. Table 5 gives details of Farm Business Incomes by types of farm, less the average direct subsidy paid per farm in 2015-16. There is no detail on income from agro-environmental nor on income from diversification. The data indicates that pig farms in Northern Ireland return a
positive Farm Business Income when direct payments are removed, whereas, cereal, general cropping, dairy, cattle and sheep farms in both less favoured areas and in the lowlands and mixed farms generate losses. When measured across all farm types the average Farm Business Income with direct payments removed is a loss of £10,184 per farm. With very few exceptions, therefore, it is evident that the Basic
Payments Scheme was an essential component of Farm Business Income in the sense that negative returns from core agricultural activities were turned positive. There are, as always, a number of caveats that should be borne in mind. First, as observed previously, averages can be misleading as regards trends. Secondly, the farm years under review, 2015-16 and 2016-17 (particularly the former period) incorporated some especially poor data as regards agricultural core business as the result of falling selling prices and rising input costs, thereby increasing the relative importance of direct payments in the Farm Business Income ‘mix’. Decisions in agriculture are not taken on the basis of one year’s
results. As the UK moves into detailed discussions about what, if anything, should replace the current, CAP-based system of farm support, the numbers will be important as a measure of the potential effects that future policy will have on agriculture, the agricultural supply
Diversified Income
Basic Payments Scheme
All Figures in Average £ per Farm 1,400 2,700 3,000
2,800
16,200 21,000 14,100
19,400
Farm Business Income
31,300 23,100 22,800
24,500
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