Farm incomes fall by nearly half with lowlands worst hit
Farm incomes fall by nearly half with lowlands worst hit
GOVERNMENT figures have confirmed that UK farm incomes fell by almost 50% last year. The lowland cattle and sheep sector suffered most, recording a 65% drop in take-home pay.
NFU president Sir David Naish said the confirmation of the income figures was further proof of what farmers and growers had been telling government for months – that every sector in the industry was facing the worst crisis in living memory.
And he echoed the warning from MAFFs income statistics unit that net farm incomes were likely to fall substantially for all farm types this year.
The average drop in 1997 farming incomes, according to government, was 46% in real terms. The industrys gross output fell 11% to £15.98bn, yet a drop of only 4% in input costs was recorded.
Incomes in Less Favoured Areas plunged by 44% last year, as it did in the cereals, and pigs and poultry sectors. A 36% fall was recorded by dairy farmers.
The value of output of cattle and calves fell by £111m in 1997 compared with the previous year. And the official figures show that payments to farmers for the over-30-month scheme, calf processing scheme and the selective cull were down £122m on 1996.
Over the year, interest rates rose and the industrys interest payments were 12.5% higher. The cost of hired labour rose by 4.9%.
"The figures speak loud and clear," Sir David said. "Unfortunately, the figures show that not one sector of the industry has been left unscathed."
And he repeated his plea to government to give UK producers equality with their EU counterparts by applying immediately for agrimonetary aid to deal with last years green £ revaluations.
While accepting the need of government and EU leaders to put public health at the top of their agendas, Sir David insisted that if there was a need for preventative action farmers must not be left to shoulder the financial burden.