‘Many sheep and cattle farms see incomes increase’

MANY sheep and cattle farms in Wales will have seen a 10-year high increase in business incomes in the last full financial year, according to new Welsh Government data.

But the situation will have changed markedly in recent months, with significant increases in costs for farmers and the dissipation of the impact of Covid on retail trends illustrating the potential volatility of the agricultural sector.

In the year to March 2022 Welsh farm incomes rose to a new overall average of £38,600 – up nearly a third on levels reported in the previous 12 months.

The detailed information is contained in the latest release of the annual Forecast of Farm Incomes in Wales publication released by the Welsh Government, which provides an insight into long-term trends in farm incomes and market performance. The current Hybu Cig Cymru – Meat Promotion Wales (HCC) monthly Market Bulletin looks into the results of the 2021-22 financial year along with the impacts of inflation on the sector.

“It must be remembered that the period of the report (2021-22) largely predates the dramatically different business climate following the surge in costs that came with rising inflation and the war in Ukraine that hit many farm businesses in the current financial year (202223),” said Glesni Phillips, HCC’s Intelligence, Analysis and Business Insight executive.

She explained that the report featured mean averages of farm income and often variations for individual farms could be influenced by a huge range of factors – such as physical location, economic size of the farm, production costs, whether the business is investing, and the skill set of the business person.

“Therefore, the farm income averages discussed will only provide an indication of the sector’s performance, as variations will exist at farm level,” said Glesni.