DairyCo

Farm Business Income

Published 9 June 11

Farm Business Income

• Provisional figures for England for the 2010/11 milk year show a fall in Dairy Farm Business Income of 24.1% compared to 2009/10.
• Provisional figures suggest an average income of £42,500 in England for 2010/11.
• Forecasts show that NI Dairy Farm Business Income is likely to be around £39,800 for the 2010/11 milk year, double the previous year's figure.
• Forecasts for Wales show a fall in Farm Business Income of 12.6% to £45,600 for 2010/11

The fall in Farm Business Income in England and Wales is expected to be partly the result of a fall in the Single farm payment scheme in 2010, which is accounted for in the 2010/11 accounting year. The Sterling strengthened against the Euro from September 2009 to September 2010, from 0.9093 to 0.85995 £/€; this meant that the average Single farm payment fell by between 8 and 10 percent.   

The fall in Farm Business Income is also thought to be partially due to higher production costs, particularly those associated with higher purchased feed. Farmgate prices were consistently higher in the 2010/11 year than 2009/10, but only high enough to offset this in Northern Ireland, where prices were substantially higher in 2010/11 than in 2009/10.

Data is currently unavailable for 2010/11 for Scotland. Scottish data for 2009/11 is likely to be published in January 2012. 

*Provisional, **Forecast

Source: DEFRA, SEERAD, Statistics for Wales, DARD

Farm Business Income equals
Total output from agriculture (includes crop and livestock valuation change) plus
Total output from agri-environment schemes plus
Total output from diversification plus
Single payment scheme less
Expenditure (costs, overheads, fuel, repairs, rent, depreciation, paid labour) plus
Profit/(loss) on sale of fixed assets