Farmers in East Anglia are making only a third of the profits they made 10 years ago, according to a survey of farmers in the region.

Producers in the area made an average profit in 2005 of £139/ha (£56.30/acre), including the single farm payment. But without that money, the average farm made a loss of £39.50/ha (£16/acre).

The findings come from an annual survey of 112 farmers across Norfolk, Suffolk, Cambridgeshire and Essex. Conducted by accountant Larking Gowen, the survey blamed the poor profits on crop prices and changes to farm subsidies.

Moving to the SFP had caused a “permanent reduction” in subsidies, while delays in receiving the payment had pushed finance costs up by 28% to £67/ha (£27/acre), the survey said.

Farmers in the region were also warned changes to sugar-beet incomes could eliminate virtually all profits over the coming years unless growers could find alternative sources of income.

The survey predicted sugar-beet prices would drop to £19/t from the current value of under £30/t, and said it would only be a viable crop for growers who could produce 28t/acre, something only two farms in the survey achieved in 2005.

However Larking Gowen said there was some hope for the future, with rising oil prices bringing greater opportunities for biofuels.

Increased grain demand in India and China could also provide further export opportunities for farmers, the firm said.