DairyCo

Net Farm Income

Published 18 February 10

Net Farm Income

Note: There is now limited data available on Net Farm Income.

• Forecasts for NI show that in 2009/10 the Net Farm Income on a dairy farm has fallen by 33.7% compared to the previous year.
• Forecasts for Wales show that in 2009/10 Net Farm Income is expected to fall by 13.0% compared to the previous year, to £45,000.

Net Farm Income rose in 2007/08 due to the unexpected rise in commodity prices at the end of 2007 which saw increased farmgate prices for farmers. Commodity prices then fell slightly in 2008 compared to 2007 but remained above previous levels, before falling further at the beginning of 2009.

Northern Ireland are much more heavily affected by rise and falls in the commodity markets, this helps to explain why in 2007/08 their farm income rose dramatically and then as commodity prices fell slightly in 2008 and 2009 their income for 2008/09 and 2009/10 fell back.

As GB has less milk going into the commodity markets, farmgate prices remained more stable through 2008 and 2009 compared to NI. This helps to explain why farm income rose in 2008/09 in England, Wales and Scotland but fell in NI.  

Currently there is no data available on Net Farm Income for 2009/10 for England, Wales and Scotland. Scottish data for 2008/09 may be published around April 2010. English data for 2009/10 should be published at the end of December 2010.

*Provisional, **Forecast

Source: DEFRA, SEERAD, Statistics for Wales, DARD

Net Farm Income equals
Receipts from sales of output plus subsidies plus
Crop and livestock valuation change less
Expenditure (costs, overheads, fuel, repairs, rent, paid labour) less
Depreciation of tenant capital less
Imputed value of unpaid labour less
Imputed rent for owner occupiers.