Average farm income decreases from record high

Estimates for the average farm provide an overview of the financial health of the industry. The average farm is the weighted average across all farm types included in the farm business survey.

Average farm income was around £35,500 in 2023-24, the lowest estimate since 2019-20 after adjusting for inflation. This is a 51% (£37,500) decrease from the high of the previous year, which was the highest income since 2012-13, the earliest year for which comparable data exists.

Figure 1: Average farm income, with and without support payments, 2012‑13 to 2023-24. 2023-24 prices.

Agricultural activity was loss-making in 2023-24 for the average farm. Income from agricultural activity is the difference between agricultural inputs and agricultural outputs and excludes support payments, contracting and diversified income.

Agricultural output decreased by 14% (£40,000) to £245,300 in 2023-24. This is mostly driven by decreases in crop, livestock, and milk outputs.

Total input costs decreased by 1% (£4,000) from the previous year to £273,900. Decreases in feed and fodder, regular labour, and land and property costs offset increases in fertiliser and casual labour costs.

Farms received around £46,500 in support payments and grants. This is a decrease in real terms of 5% from payments received in 2022-23 (£49,000). The decrease was mostly driven by the fixed rate of the Basic Payment Scheme, which did not increase with inflation.

In 2023-24, the average business made a loss of £11,000 without support. The average farm has only made a profit without support in two of the 12 years for which we have comparable data.

The average farm made around £6,200 from diversified activities, for example by renting out buildings or generating electricity. This is a 23% increase from the previous year’s figure of £5,100.

Table 1: Farm business income (FBI) and contributions to FBI, average for all farms, 2022-23 and 2023-24. 2023-24 prices.