Figures published by Defra today (31 Jan)
reveal farm incomes in the UK for 2007 have risen by 8.7 per cent in real terms
to £13,349/head, but the NFU claims the average figure hides an 'unbalanced'
industry.
Total income from farming in the
Jeff Rooker, Minister for Sustainable Food and Farming and Animal
Health, said he was encouraged by the figures, achieved during what was a very
difficult year for farming.
TESTAMENT TO INDUSTRY
"This is testament to the resilience of the industry," he commented.
"Although the overall picture from these statistics is
positive, I am aware that the rise has not been universal across all parts of
the industry."
"Many livestock farmers have had a very difficult time in
recent months due to a series of unforeseen events including animal disease
outbreaks and increasing feed prices."
"For our part, Government remains committed to working with
the agriculture sector to help farmers drive up their economic and
environmental performance."
HUGE VARIATION
The NFU described the figures as 'a snapshot of an increasingly unbalanced
industry', with the overall increase masking 'a huge variation' in the
performance of the various sectors, with the increase in cereal prices being
the dominant influence.
That increase is forecast to raise cereal farm profits by 38% in
the 2007/08 financial year, at the expense of sharply reduced returns to pig
farmers – average loss over £4,000 this year - and poultry producers – profits
down by over 90%.
Grassland livestock producers have also suffered from the effects
of disease outbreaks and depressed markets.
This has resulted in forecast income falls of 34 per cent for
lowland livestock farmers, and of 44 per cent for hill farms, to just £8,700
and £5,900 respectively per farm.
Horticultural producers did see higher prices for fruit and
vegetables making up to some extent for a difficult, flood-affected growing
season, and dairy incomes are forecast to rise by 44 per cent thanks to the
increase in milk prices since the middle of 2007.
NFU President Peter Kendall said the figures demonstrated how
important it was for the livestock sectors to recover, if the industry as a
whole was to make its full contribution to securing Britain’s food supplies.
NEITHER HEALTHY NOR SUSTAINABLE
"Although an increase of ten per cent in net farm incomes looks like a
worthwhile move forward, where we are now is neither healthy nor sustainable
for the long-term," he said.
"We desperately need to bring the industry back into balance,
through a phased increase in producer prices for beef, lamb, poultry, eggs and
pigs."
"The alternative will be the emergence of a boom, bust cycle, which could de-stabilise the arable sector as well as ultimately fuelling food price inflation by leaving us dangerously dependent on increasingly expensive imports."