The UK farming sector’s profits rose by 26% last year, according to the latest government figures.
The total income from farming in 2024 jumped to £7.7bn in 2024 from £6.1bn in 2023.
This large increase was driven by a decrease of £1.2bn in the value of inputs, largely due to lower fertiliser prices, coupled with a £0.4bn decrease in the value of outputs.
Livestock output increased by £1.1bn from 2023 to £20.1bn, driven by the increases in values of eggs, beef and milk.
In 2024, the average price of eggs across all production methods increased by 8.7% to 144p per dozen, due to increases in the production of higher-cost free-range eggs. Egg production also increased by 4.1%.
In beef, there was an increase in value of £352m due to historically high prices for deadweight prime cattle, along with a 3.8% increase in hormone-beef production.
The overall farmgate price of milk increased by 4.4% to 41p per litre in 2024, with higher prices driving increases in production volume in the latter half of the year.
However, total crop output declined by 5.3% from 2023 to £11.7bn due to poor yields caused by wet weather conditions in key planting periods, and a continued decrease in the value of cereal and oilseed prices after the exceptionally high prices seen in 2022.
Rising incomes
“Farming incomes are on the rise – credit to the hard work of our farmers keeping the country fed and protecting the long-term food security our country needs,” said farming minister Daniel Zeichner. “We’re determined to build on this progress – backing farmers to meet future challenges, strengthen food security, and support thriving rural communities.”
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The government said the boost to farming income was fundamental to its Plan for Change to kickstart economic growth.
“That’s why we’re investing £5bn – the largest-ever budget for sustainable food production – and have appointed Baroness Minette Batters to recommend reforms that put more money back in farmers’ pockets, as part of our Plan for Change.”
The increase in profitability was “clearly welcome and a step forwards”, said NFU president Tom Bradshaw, however, he warned it hid “the significant volatility seen in recent years and the variable returns across different farming sectors”.
“This data, showing the year-on-year changes in farming incomes, is shaped by a complex mix of markets, weather and 2023 having the highest input costs in decades because of the tragic situation in the Ukraine – and these figures once again show just how exposed farmers across the four countries of the UK are to these pressures,” said Bradshaw.
He said the upcoming spending review was particularly important in providing “certainty to plan and invest”.
“Farmers are resilient and adaptable, but they cannot shoulder all the risk on their own,” he added. “This is a clear signal that government must step up and put food security at the heart of its priorities.”
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