More farms make a loss in 2023-24

Business performance varies within farm types. There are loss-making and high income farms in most farm types.

The proportion of loss-making farms in 2023-24 was 27%, an increase from 17% reported in 2022‑23.

The proportion of farms making a loss increased for nearly all farm types in 2023-24. The proportion of all farms making over £100,000 was 13% in 2023-24, down from 24% reported in 2022-23.

The proportion of loss-making dairy (31%) and cereal farms (31%) increased compared to the previous year. This is mainly due to the decreases in milk and cereal output driving decreases in income.

Compared to last year, there are large falls in the number of high-income dairy and general cropping farms. In 2022-23 these farm types achieved record high average incomes. In 2023-24 the proportion of dairy and general cropping farms making over £100,000 was 43% and 35%, down from 88% and 63% respectively. 

Lowland cattle and sheep farms saw the largest increase in numbers of loss-making farms in 2023-24. Falling cattle and milk outputs drove an increase in loss-making farms from 20% reported in 2022-23 to 68% in 2023-24.

More LFA and lowland cattle and sheep farms have low incomes or make a loss compared to other farm types. However, some LFA and lowland cattle and sheep farms do have incomes of £100,000 or over. In 2023-24, no LFA sheep farms were making over £100,000.

Figure 10: Farm income distribution by farm type, 2023-24