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UK Total Income from Farming


30 April 2015

UK Total Income from Farming 2014 - 1st EstimateUK Total Income from Farming 2014 - 1st Estimate


Total Income from Farming in the UK

Total Income from Farming 2014 – 1st estimate, United Kingdom

This release presents the first estimate of Total Income from Farming for the United Kingdom for 2014. Total Income from Farming is the income to those with an entrepreneurial interest in the agricultural industry, typically farmers and partners. A second estimate incorporating data that becomes available later in the year will be published on 26th November 2015.

There are revisions to previous year’s data owing to further information becoming available and methodology reviews. These are highlighted in the revisions section of this document on page 10.

Key points:

• Total Income from Farming is estimated to have fallen between 2013 and 2014 by 4.4% (£247 million) in real terms, to £5,379 million and is 1.2% lower than the value in 2011, the last year which was not directly affected by the weather. The 2014 value was driven by increased production offset by lower prices and reduced payments resulting from the less favourable euro/sterling exchange rate.

• Total Income from Farming per annual work unit (AWU)1 of entrepreneurial labour (farmers and other unpaid labour) is estimated to have fallen between 2013 and 2014 by 4.4% in real terms to £27,847 and is marginally lower than the 2011 value.

• Gross value added at basic price2 , which identifies agricultures contribution to the Gross Domestic Product (GDP), rose by £306 million to £9,922 million. In real terms, a 3.2% increase.

Summary (in real terms)

Real term value is where previous year’s data is adjusted to take account of inflation so the values are comparable.

In real terms Total Income from Farming in 2014 is estimated to be 4.4% lower than the 2013 total. After a wet start to the year and floods in South West England, good weather conditions in the spring and summer encouraged crop growth, record yields, ample forage and led to higher production levels. In comparison prices declined which led to a 2.2% fall in the value of outputs. The lower prices also reduced the value of intermediate consumption by 5.4%. This led to a 3.2% (£306 million) rise in gross value added at basic price to £9,922 million.

However the movement in the euro/sterling exchange rate led to reduced Single Farm Payments which reduced payments by £459 million in 2014. With small increases in capital consumption, labour and rent as well Total Income from Farming fell by 4.4% (£247 million) to £5,379 million.

Comparing 2014 against 2011, the last year which was not adversely affected by the weather, total income from farming fell by 1.2%. Outputs in 2014 were £866 million higher than 2011 driven by higher production but lower prices. There was little change in the value of intermediate consumption between the two years, a slight increase in the volume used offset by a slightly lower price. Gross value added at basic price was £781 million higher in 2014 compared to 2011.

However the unfavourable exchange rate reduced the value of single farm payments and farmers received £733 million less in payments in 2014. This along with changes to consumption of fixed capital, labour and rent sees total income from farming £67 million less than 2011.

Total Income from Farming per AWU of entrepreneurial labour follows a similar trend to Total Income from Farming but owing to a decline in the number of farmers and other unpaid workers has performed better over time. Total Income from Farming per AWU of entrepreneurial labour is 4.4% lower than 2013 and just 0.4% lower than 2011.

Headline figures

In 2014 Total Income from Farming fell by £151 million to £5,379 million, a 2.7% decrease on 2013. The key contributors to the change were the decreases in: subsidies on production by £401 million, cattle by £311 million, potatoes by £263 million and barley by £239 million. This was somewhat offset by an increase of £382 million in wheat and a £331 million increase in the value of milk, both increases driven by higher production levels; and a decrease in animal feed costs by £555 million.

Gross value added at basic price, which identifies agricultures contribution to the Gross Domestic Product (GDP), rose by £471 million to £9,922 million, a 5.0% increase.

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