Farm incomes plummet again

28 January 1999

Farm incomes plummet again

By FWi staff

FARM incomes fell massively again last year, according to provisional UK estimates released by the government today (Thursday).

The total income from farming fell by 29% during 1998, reveal statistics released by the Ministry of Agriculture. The drop is equivalent to 32% in real terms.

The value of farm output, including subsidies, was 9% lower than in 1997, representing a £1.68 billion drop in value.

The government is blaming the fall on the oversupply of commodity markets, economic difficulties in Russia and Asia and the strength of Sterling.

The National Farmers Union claims that average farm incomes fell by 48% when the dramatic slump in net farm incomes for three types of farming systems are included.

According to NFU calculations, lowland beef and sheep farmers saw incomes plummet by 378%; pig and poultry producers by 174%; and mixed farms by 37%.