Note: Defra no longer publish Net Farm Income but publish Farm Business Income instead. Below details the differences between the methods.

Farm Business Income equals
Total output from agriculture (includes crop and livestock valuation change) plus
Total output from agri-environment schemes plus
Total output from diversification plus
Single payment scheme less
Expenditure (costs, overheads, fuel, repairs, rent, depreciation, paid labour) plus
Profit/(loss) on sale of fixed assets

Net Farm Income equals
Receipts from sales of output plus subsidies plus
Crop and livestock valuation change less
Expenditure (costs, overheads, fuel, repairs, rent, paid labour) less
Depreciation of tenant capital less
Imputed value of unpaid labour less
Imputed rent for owner occupiers.

For more information on the differences click here.

Provisional dairy Farm Business Income figures for 2007/08 show that all countries saw a significant increase in the level of income. Dairy farms in England saw an average Farm Business Income of £50,700 a 50.9% increase on 2006/07, while dairy farms in Northern Ireland saw their average income rise 42.9% from £27,300 to £39,000. Dairy farms in Wales saw the lowest percentage rise in income, increasing 29.6% from £36,800 to £47,700.

The increase in Farm Business Income is likely due to the increase in farmgate prices between the 2006/07 and 2007/08 period. The average farmgate price has increased 48.6% from 17.34ppl to 25.77ppl between April 2006 and March 2008. For more information on milk prices click here.

Farm Business Income by Country

*Provisional

Source: DEFRA