Average farm business income is expected to decline for the dairy sector

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By Bronwyn Magee

The average farm income * of dairy farms in England is should drop by 10%, according to the latest Defra farm business income forecast. For 2020/21, farm business income is expected to average £ 76,000, £ 8,800 less than the previous year.

The report points out that input costs should increase by 1% year over year, driven by rising feed prices, as well as the costs of machinery and other livestock. However, these increases should be partially offset by a decrease in the costs of crops, in particular the cost of fertilizers.

during this time, the value of go out milk and dairy products is is expected to increase by 1%. This is because milk prices have remained fairly stable throughout the year, while milk production is expected to increase slightly year over year, despite the COVID-19 pressures seen during the year. spring peak of 2020.

However, a decline in crop production, especially cereals, means that overall production of dairy farms is expected to remain stable from last year’s levels.

Despite the decline in average farm income year over year, dairy products continue to have the highest average farm business income of any livestock sectors outside of poultry. However, it should be noted that due to the large variation in the price of milk received between farms, in addition to COVID-19 affecting some farms more severely than others, the forecasts should be treated with some caution in this regard. Stadium.

* Farm business income represents the financial return on all unpaid labor (farmers and spouses, non-primary partners and their spouses and family workers) and all of their capital invested in the farming business, including land and land. buildings. Essentially, farm business income is the same as net income.

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