Agricultural income is profitable for the average farm

Total average farm income is calculated from the following income streams:

• agricultural activity
• contracting activity
• diversified activity
• support payments

For the first time since 2012-13, the first period from which comparable data exists, farms on average made a profit from agricultural activity, although there is still considerable difference across different farms and farm types. The average farm generated £12,800 in agricultural income, an increase of £17,800 from the loss made in 2021-22.

However, average agricultural activity was not profitable for all farm types.  Livestock farms, excluding dairy farms, continue to make a loss from agricultural activity. LFA cattle and sheep farms made the largest loss of £43,100 from agricultural activity in 2022-23.

Figure 7: Breakdown of contributions to farm income by farm type, 2022-23.

Average incomes from support payments, contracting and diversified activities vary less than agricultural income by farm type. The average farm in 2022‑23 gained £40,500 from support payments and grants, £5,200 from contract farming and £5,000 from diversified activities.