Dairy farm income increases

Average income for dairy farms is £218,500 in 2024-25. This is the second highest average income since 2012-13, the earliest year for which comparable data exist. After a fall in income in 2023-24, average dairy farm income increased by 85% (£100,300).

Figure 4: Average farm business income, dairy and all farms, 2012-13 to 2024-25. 2024-25 prices.

Agricultural output increased by 9% (£90,600), driven by increases in cattle and milk output. Cattle output increased by 35% (£55,500) to £215,800. A higher average milk price was the main driver for an increase of 5% (£40,300) in milk and milk products output to £870,700.

Dairy farms are sensitive to changes in milk market prices and experience fluctuating income. Average farmgate milk prices and yields in the survey increased slightly. Average price increased from 39 to 42 pence per litre. Average yield increased from 7,900 to 8,100 litres per cow. However, milk prices and yields vary widely within the sample.

Input costs stayed stable at £963,200 on average. Fertiliser costs decreased 32% (£16,100), which was offset by fixed costs increasing, particularly land and property costs by 14% (£11,300).

Dairy farms have a high average income compared to other farm types. However, while some dairy farms make large incomes, others will make a loss. They also have the largest average business size. The average standard labour requirement (SLR) for a dairy farm is 9, compared with an average of 3 across all farm types.

Table 4: Farm business income (FBI) and contributions to FBI, dairy, 2023-24 and 2024-25. 2024-25 prices. Figures are rounded to the nearest £100 and percentage change is calculated from unrounded figures.