Rural Affairs Minister Elin Jones has welcomed new statistics on farm incomes in Wales, which show an average increase of 18% in the agriculture sector across Wales.
Farm Incomes in Wales 2008-09 was published to the Welsh Assembly Government website this week.
The Minister said: “I am encouraged by today’s farm income statistics, which indicate a much improved situation across the industry. The 18 per cent increase in income across the sector compares to a six per cent increase in England, with average farm incomes in Wales at £31,300 compared to £26,500 last year.”
The increase has been attributed to strong beef, lamb and milk prices during 2008 and the impact that the £/€ exchange rate has had on Single Payment which increased by 14% compared to last year.
On Less Favoured Area (upland) cattle and sheep farms, Farm Business Income (FBI) increased by 24% to £24,500. This puts upland farms on a par with their lowland counterparts, where the increase was 28%.
The average FBI on dairy farms was £62,600: a 21% increase on the previous year, despite a decline in milk prices in 2009. DairyCo figures for the first nine months in 2009 indicate that prices have been up to 2.8ppl (10%) lower than the same point in 2008.
There was a lot of concern for much of last year about the rising cost of inputs, in particular animal feed, fertiliser and fuel, however input price data for the first part of this year suggest that prices were below the 2008 levels.
The Minister said: “The survey results are good news for the farming industry, which is succeeding despite the global economic difficulties. Farmers are responding to the market place and producing food to the highest quality, welfare and environmental standards that the consumer demands. This will ensure that our industry is resilient in the face of future changes.”
