This follows the recent publication by Welsh Government of average farm incomes for Wales for the period April 2023 to March 2024.
Incomes across all farm types in Wales fell on average by 34%. Dairy farmers saw their income drop by 59% year on year as a result of a drop in milk prices compared to the previous year and input costs remaining elevated. Cattle and sheep farms in Wales’ less favoured areas saw average income fall by 9% to £22,200, lowland cattle and sheep farms were the only category who saw a rise in income, with a 23% rise to £23,000. Profitability on livestock farms was impacted by a reduction in farm output and input costs remaining high compared to historic figures.
“Falling farm incomes mean that farmers across Wales are struggling to find the confidence to make the decisions necessary to drive their businesses forward."
Aled Jones, NFU Cymru President
Lack of confidence
NFU Cymru President Aled Jones said: “Falling farm incomes mean that farmers across Wales are struggling to find the confidence to make the decisions necessary to drive their businesses forward. This has been compounded by the recent UK Government budget announcing changes to APR and BPR, which leave many farmers questioning their ability to remain in farming and pass the farm on the next generation. These figures show that the money is not there to foot an inheritance tax bill that could run into hundreds of thousands of pounds for some farmers. The UK Government must halt this tax which will have a huge detrimental impact on the Welsh family farm.
“The combined cost of complying with water quality regulations, continued market volatility coupled with rising costs, pressures of bovine TB and uncertainty around the Sustainable Farming Scheme (SFS) are all weighing heavily on farming families across Wales, confidence is low, and these income figures will do little to restore that confidence.
Regulation concerns
“NFU Cymru recently undertook a survey of our members to gain an understanding of the impact of the water quality regulations on the industry. The survey showed that a majority of farmers had or needed to invest to meet the requirements of the new regulations, with an estimated mean cost of investments at approximately £100,000, with 12% stating the cost was over £200,000. Today’s farm income figures show that farmers simply cannot afford, the costs based on the profitability of Welsh farming at the moment, even with grant support.
“In November, the Deputy First Minister announced a revised scheme outline for the SFS, a move seen as a positive step forward, but we all recognise the need for further work, in particular the need for a comprehensive economic analysis and impact assessment to inform the budget and payment rates for the new scheme and to ensure that the SFS works for all sectors and farm types. This is imperative to ensure that government funding and policies can underpin family farming in Wales and our farms are able to deliver on food security, to mitigate and adapt to climate change, and to ensure that nature and our rural communities can thrive.”
