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Farm income predicted to fall 15%, government figures show

Chloe RyanBy Chloe RyanDecember 14, 20181 Min Read
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Defra has published its forecasts for total farm income during 2018.

The government department said total income from farming is expected to be £4,850 million, a decrease of £861 million (-15%) on 2017, partly due to the disruptive effect of the extreme weather this year.

Agriculture is expected to contribute £9,684 million to the national economy (Gross Value Added), a decrease of £601 million (-6%).

The main drivers of these changes are: An increase of £349 million (1%) in gross output. Crop output value is estimated to have fallen by 1% to £9,162 million. The hot, dry summer contributed to lower yields of key crops. Price increases failed to offset this fall in production.

The value of livestock output is estimated to have risen by 3% to £14,843 million. Whilst prices were generally slightly higher the extreme weather affected volumes. The value of intermediate consumption is forecast to have risen by 6% to £16,769 million driven by rising fuel, feed and fertiliser costs.

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Chloe Ryan

Editor of Poultry Business, Chloe has spent the past decade writing about the food industry from farming, through manufacturing, retail and foodservice. When not working, dog walking and reading biographies are her favourite hobbies.

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