What the papers say – farm incomes

BARCLAYS BANK said farmers incomes would fall by £600 million to £1.7bn this year – their worst level since 1990.

The bank quoted an “above-average example” dairy farmer with 99.15ha (245 acres), 120 cows, an overdraft of £100,000 and a mortgage of £270,000 who would see his net income fall to only £2,485 this year, compared with £47,500 two years ago.

However, John Page, head of the banks agricultural division, forecast farming fortunes would recover again next year by about 12%.

The expected gain in strength by the new Euro early in 1999 would increase the value of existing European Union support payments to British farmers and make their produce more competitive in the market place, he said.

He said farmers must keep their bank manager informed of their financial situation.

• The Daily Telegraph 11/02/98 page 6