Survey reveals farm managers’ salaries, bonuses and perks

Farm managers now earn a salary package averaging £53,306, and the age of people commanding that level of pay is getting younger.

The survey, Farm managers in 2022, their jobs and their pay, by the Institute of Agricultural Management (IAgrM) is published every other year and analyses information on salary and conditions.

It shows that in addition to a gross salary of £50,224 and £3,082 in profit shares and bonuses, managers received non-cash benefits, including accommodation worth £10,766.

These benefits have risen £2,398 compared with the 2020 survey results.

However, the 7.6% increase in salary package over the two years delivers only a 1.35% improvement after accounting for inflation.

See also: More on farm staff management

At the top end of the salary scale, 4% now earn more than £100,000 a year in cash terms, but when non-cash benefits are factored in, 8.5% of managers achieve that earnings level.

A report compiled from the survey results suggests this reflects how complex many farm businesses have become in recent years, demanding high levels of management competence.

“Annual salaries tend to rise as farm size increases by area, and as the number of workers increases. As a result, the highest earners do the least amount of manual farm work,” the report says.

Younger managers

The survey shows that greater numbers of younger people are holding managerial positions. At nearly twice as many as a decade ago, 46% are now under the age of 40.

“A lot of column inches is devoted to farmers getting older but in management roles they are getting younger,” says one of the report’s authors, agricultural economist Graham Redman.

Some 60% of farm managers now have a degree compared with 53% in 2020, while in 2012, it was just 35%. All other managers in the 2022 survey are educated to at least diploma level.

“Younger farm managers are more likely to be degree educated, with 86% of those under 30 having academic qualifications to that level. This compares with 36% of the over 60s,” the report says.

Diplomas trump degrees in earnings stakes 

However, managers with diplomas earned more than those with degrees, even when comparing within similar age groups.

Experience is also valuable though – managers with more than 10 years’ experience are earning an average of just over £60,000.

However, experience beyond 10 years appears to gain little additional value in salary terms.

Managers across all age categories saw their salaries rise, apart from the over 60s, whose cash income fell sharply, to £54,325 compared to £67,158 in 2020 (gross salary plus profit share and bonus).

Splitting the results by age bands shows that cash earnings for those aged 50-59 average £65,578 gross, compared with £49,288 for those aged 30-39.

Of those, managers with less than five years’ experience averaged £37,680, those with five to 10 years £45,946, while managers with 11-15 years’ experience earn an average of £64,409.

High proportion of younger managers

A large proportion of farm managers (28%) have less than five years’ experience. Prior to 2020, no survey had more than 9% of respondents with less than five years’ experience.

Women accounted for 5% of farm managers – up from 2% in 2020 – the highest recorded level.

But male managers earn more than women, with the report advising that this might be a reflection on the greater number of young women with less management experience.

At 129, the number of managers who participated in the survey was at its highest level ever.

Of all the respondents, 40% are based in the eastern counties – a reflection of cereal and general cropping farms in that region being more likely to have managers, says the report.

The scale and diversity of the businesses they are managing have changed considerably since 2012, with 13% now responsible for more than 3,000ha, while less than one-third manage under 800ha, compared to almost half of the survey respondents in 2012.

One-third of farm managers also earn an income from other sources. 

The role of farm manager has changed considerably during the 50 years since the first survey. Aside from growth in the size of farms and the development of technology, more than half have responsibility for diversified enterprises.

Other survey findings include:

• Those who contribute to a pension put in 5.8% of their salary, while employers contribute an average of 6.1%
• There was an increase in the percentage owning their own house, at 68%, compared with 64% in 2020
• 53% receive a fixed salary, with the remainder receiving a bonus
• 91% of farm managers have their salary reviewed annually
• Almost all farm managers have responsibility for day-to-day organisation of the business and decisions relating to the farm system, while 62% have financial control of the business
• 33% earn income from elsewhere, with more than half of these earning rental income
• More than half (55%) get 21-25 days holiday annually, while 19% get 26-30 days and 6% more than 31 days 
• Members of IAgrM (51% of respondents) earn £7,700 more than non-members, although the reason for this is not clear.

Do you know an outstanding farm manager who deserves additional recognition?

Encourage them to enter the Farmers Weekly Farm Manager of the Year Award 2022, where nominations can also be made.

Alternatively, contact suzie.horne@markallengroup.com to tell us about them.