Farming Matters !

Deloitte & Touche have published figures suggesting that while income from non-farming activities is rising, the return from food production is virtually nil.

In the twelve months up to 30th. June 2002 the average net income for a lowland farm has risen to £18/ac. The forecast for this coming year is however down again to just £12/ac.

On these returns (which it must be remembered include ‘non-farming activities’), even a well structured 1000 acre farm generates just £15,000 to £20,000 for costs, etc. and much needed expansion. There is in reality nothing for re-investment.

The ‘News Release’ goes on to say that ‘Our figures show that this year only 50% of output was generated from food production and the majority of farmers earned nothing from it’. ‘Five years ago some 70% of output was derived from food production and this contributed most of the profit’.

Labour continues to be cut back. The minimum agricultural wage was increased by 4.4%, whilst the actual labour costs in the survey fell by 3.6% showing a reduction in the work force.

Latest figures from the Government reveal that a total of 15,200 jobs were lost in agriculture in the twelve months to June this year.

• 8,600 farmers left the industry
• 6,600 farm workers jobs were lost

Remember that:-

• In the two years to June 2000, 51,300 farmers and workers left agriculture. - see archive links above
• Agriculture supported the direct employment of just under 400,000 people on 147,416 holdings in 1999 and of 374,000 on 146,000 holdings in 2000. (‘FMD; the state of the Countryside’ report, Countryside Agency August 2001)

Facts and Figures; - updated monthly

Facts index