Farm Business Income (FBI) in England has significantly declined in 2023/24, with average incomes falling across most farm types
The drop follows exceptional highs in 2022/23, reflecting a combination of lower output prices, reduced yields, and higher costs for many agricultural sectors.
Decline in Farm Business Income
Cereal farms experienced a sharp decline in FBI, which fell by 73% to £39,400. This followed two years of strong financial performance driven by higher crop prices and yields.
General cropping farms saw their average income drop by 24%, down to £95,300, mainly due to lower output prices and yields.
The dairy sector, which had appreciated strong earnings in previous years, also had a downturn.
Farm Business Income on dairy farms fell by 68%, reaching £70,900, mainly due to a reduction in the farmgate price of milk, which has impacted farm profitability.
Grazing livestock farms in lowland areas saw a nearly 25% decrease in FBI, which dropped to £17,300. This decline was due to lower output from both crop and sheep enterprises. Grazing livestock farms in Less Favoured Areas (LFAs), while still seeing a drop in income, managed slightly better, with average FBI falling by 12% to £23,500. The higher fixed costs in these areas were only partially offset by increased output.
Sectors that performed better
Specialist pig farms saw a rise in Farm Business Income, up 10% to £135,800, due to higher prices and increased throughput. Specialist poultry farms also experienced a boost, with FBI rising by nearly 24% to £143,600, driven by stronger output from egg production.
The Basic Payment Scheme, which has been progressively reduced since 2021, continued to affect farm incomes. In 2023/24, the average net payment received across all farm types was £18,300, 21% lower than the previous year, accounting for around 40% of overall FBI.
Income from agri-environment activities, which includes payments for sustainable farming practices, showed a positive trend. On average, net income from these activities increased by 14%, reaching £10,600.
The latest data shows the ongoing challenges faced by farmers, particularly those in the arable and livestock sectors. While some farm types have seen an increase in income, overall, the agricultural industry faces a period of financial uncertainty as it adjusts to changing market conditions, government policies, and ongoing climate challenges.
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