Farm incomes lift for dairy and livestock as cereals drop

Farm business incomes for dairy enterprises are forecast to have increased by almost 150% on the year as a result of higher farmgate milk prices and increased output.

Average dairy farm incomes in England are estimated to have lifted from £70,900 to £176,000 in the 12 months to February 2025, according to latest Defra estimates, although this still remains below 2022-23 levels.

Meanwhile, incomes for lowland grazing livestock farms are expected to have increased on the year by 61% to average £28,000.

See also: Welsh farm incomes see drop in 2023-24

Defra attributed much of this growth to a substantial increase in income from agri-environment schemes.

Higher farmgate prices for beef and sheep also factored into the increase, but this was partially offset by tighter supplies and lower throughputs.

Grazing livestock farms in less favoured areas (LFA) are also forecast to have an average income of £28,000, up by 18% on the year.

Meanwhile, business incomes are estimated to have increased by 14% on specialist pig farms over the past 12 months, to average £155,000. 

Defra farming minster Daniel Zeichner said: “This is welcome news, but we recognise there is more to do.

“This government will go further to ensure farming becomes more profitable for the future by backing British produce, protecting farmers in trade deals, improving supply chain fairness and reforming planning rules on farms to support food security.  

“It is only by building a more profitable sector that we can improve resilience to the shocks that periodically disrupt farming, including severe flooding, drought and animal disease.”

Cereals

Tough weather conditions last year led to a smaller cropping area and a significant decrease in output for cereals enterprises in the past 12 months.

Smaller volumes of grain on farm, compounded by lower prices for wheat and barley, is forecast to have led to overall crop output being 18% lower on the year.

Defra also predicts income on cereal farms to drop by almost on-third to £27,000 for the March 2024 to February 2025 period. 

A Defra report said: “The delinked basic payment is forecast to fall by a quarter, while income from the agri-environment cost centre is predicted to more than double compared to 2023-24 to around £35,000.”