Farm income figures confirm ‘up horn, down corn’ for 2025

Defra’s latest Total Income From Farming (Tiff) figures paint a mixed picture for UK agriculture in 2025, with livestock output up by 10% on the year, but crop output down by 3%.

Livestock producers typically achieved greater returns last year, driven by higher farmgate milk and beef prices.

Beef was a stand out performer, with high finished cattle prices lifting total beef output by 23% in 2025 to more than £5bn.

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The dairy sector also performed well, with elevated farmgate milk prices and high production volumes last spring and summer lifting total output to in excess of £7bn.

However, falling farmgate values for both beef and dairy so far in 2026 suggest margins are likely to diminish for the year ahead.

Arable enterprises had reduced incomes overall in 2025, predominantly due to lower commodity values for potatoes, wheat, barley and sugar beet.

This follows an equally challenging year for arable growers in 2024 when UK cereals production was particularly low.

‘Welcome sign’ 

Defra has estimated the UK’s Total Income From Farming (Tiff) at £8.4bn for 2025, a 20% increase on the previous year.

Defra farming minister Dame Angela Eagle said: “Rising farm incomes for the second year running are a welcome sign for the sector.

“Behind these figures are farmers across the country who continue to adapt, innovate and produce world-class food in the face of changing market conditions and other pressures.

“Our focus now is on building long-term confidence in the sector.”

The NFU called the latest figures positive for livestock, poultry and dairy, but emphasised that it had been another very difficult year for cereal growers, with extreme weather and continued uncertainty over the future of agri-environment schemes.

Investment 

NFU president Tom Bradshaw said: “Farming is a business like any other, and it’s important to recognise huge investment is needed over the coming decade to meet environmental regulations, deliver the ever-growing animal welfare demands, and build the resilience of the UK food system.

“This investment can only be made by profitable businesses that have long-term confidence.”

 He added: “Fast forward six months and huge volatility has returned, and British agriculture is under immense economic strain, driven by the conflict in the Middle East.

“Farmers’ margins are under pressure, and for many they have been completely eroded by falling prices. 

“The job of producing food is much harder now due to spiralling costs of fertiliser, fuel and energy.”