The average net farm business income in Wales will have fallen 25% in the year to March, according to forecasts from the Welsh government.
Across all farm types that represents an average decrease in net income of £4,500 to just £13,000.
Input costs are forecast to fall during the period, but are expected to be offset by the bigger drop in farmgate prices and reductions in the value of BPS payments.
Dairy farmers are expected to see the biggest fall of any farm type, with their net business incomes plunging by £27,600 (47%) to £30,500, taking dairy incomes well below the low levels of 2012-13 (£32,500 net income).
However, dairy incomes will have fallen even more than this because the figure includes payments from the EU Dairy Package – an emergency support measure to help producers cope with the global slump in milk prices.
Already low incomes on beef and sheep holdings are expected to fall even more – by 4% on less favoured area farms to £11,000 and by 11% on lowland farms to £15,500.
Farm business income represents the return to all unpaid labour (farmers, spouses, non-principal partners, family workers and others with an entrepreneurial interest in the farm business) and to all their capital invested in the farm business including land and farm buildings.
The farm business income data was collected from about 550 farms across Wales.