Chapter 3: Farming income
Published 10 July 2025
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Summary
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In 2023/24, the average Farm Business Income (FBI) across all farm types in Great Britain (data for Northern Ireland were not available when Agriculture in the UK was compiled) was £41,500 compared to the UK average of £82,500 in 2022/23. The fall in FBI in 2023/24 followed exceptional highs for some farm types in 2022/23.
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FBI varies greatly with 29% farms in Great Britain failing to make a positive FBI in 2023/24, while 28% of farms had an FBI of over £50,000.
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In 2024/25, average FBI for farms in England is forecast to rise for most farm types (except cereals) reflecting reductions in the cost of inputs such as fertilisers and animal feed. Firm output prices are also predicted to have a positive impact on overall FBI for livestock farms.
Introduction
This chapter presents Farm Business Income. Total Income from Farming (TIFF) data can be found in Chapter 4.
Farm Business Income (FBI) is the preferred measure for comparisons of farm type and represents the return to all unpaid labour (farmers, spouses and others with an entrepreneurial interest in the farm business) and to all their capital invested in the farm business including land and farm buildings.
Total Income from Farming (TIFF) represents business profits and remuneration for work done by owners and other unpaid workers. It is used to assess UK agriculture as a whole.
Table 3.3, found at the end of this chapter, provides more detailed information on definition, method used and similarities and differences for the two income measures.
Farm Business Incomes by farm type
The estimates of Farm Business Income (FBI) are averages. It should be noted that across different regions and farm types, some farmers receive considerably more or less than these averages. The 2023/24 data for Northern Ireland were not available when this publication was compiled. The latest Northern Ireland data can be found here.
Forecasts of FBI for 2024/25 (i.e. the year ending February 2025 and harvest 2024) at current prices are shown in Table 3.1a for England. These forecasts include the 2024 delinked Basic Payment which is recorded in the 2024/25 accounting year.
Note that forecasts of FBI in Wales and Scotland have not been produced. Forecasts for Northern Ireland are not yet available. In England, no income forecasts for 2024/25 have been produced for specialist poultry or horticulture farms. These forecasts are subject to a considerable degree of uncertainty, reflecting both the structure of these sectors and the relatively small sample of these farms in the Farm Business Survey. These factors have meant it has not been possible to produce robust forecast estimates.
For farms in England, reductions in the cost of inputs, such as fertiliser and animal feed, are expected to be a major contributing factor to the forecast rise in the average 2024/25 FBI. For livestock farms, firm output prices are also predicted to have a positive impact on overall income. The average delinked Basic Payment is expected to fall by around a quarter across all farm types, reflecting the fourth year of progressive reductions to the payment. Although variation between farm types is forecast, at the all farm level income from agri-environment activities is expected to rise by more than three quarters to around £23,000.
On cereal farms, average FBI is expected to fall by nearly a third to £27,000 in 2024/25. A combination of challenging weather (including wet autumn drilling conditions and a cool, wet harvest) and lower output prices are forecast to result in a substantial drop in output from crops (most notably for wheat where output is expected to drop by just over a quarter). Overall, crop output is forecast to be around 18% lower than 2023/24. A fall in input costs, largely driven by substantially lower fertiliser costs due to lower prices and, for some crops, a smaller planted area, will not be enough to offset the larger reduction in output.
At £108,000, average FBI for general cropping farms is forecast to be 13% higher than 2023/24. Lower input costs are expected to be a major influencing factor, with a notable fall in fertiliser costs (following the rise due to the war in Ukraine). Crop output is forecast to fall, but to a lesser extent than input costs. As with cereal farms, a sizeable drop in output from cereals and oilseed rape is expected, however for general cropping farms it is predicted that this will be partially offset by increases for other crop enterprises, such as potatoes and sugar beet.
On dairy farms in England, average FBI is forecast to be around £176,000 compared to £71,000 in 2023/24. An increase in output from milk of around 12% is expected to be a key factor and will be driven by a recovery of farmgate prices (supported by tight supplies at the start of the year). At the same time, input costs are forecast to fall by around 2%, primarily driven by reduced feed costs (reflecting lower cereal prices) and also lower fertiliser costs.
In England, FBI for grazing livestock farms, both lowland and in Less Favoured Areas (LFAs), is forecast to increase to £28,000. This translates to a rise of 65% for lowland farms compared to 2023/24 and 18% for LFA farms. Higher output from sheep enterprises reflecting lamb prices consistently up on the year, including some record highs, is expected to be a key driver. Firm prices for finished and store cattle will be another positive factor, although for LFA farms these are predicted to be tempered by lower throughput for stores. Reduced feed costs are also expected to be driver and, for lowland farms, higher revenue from agri-environment activities.
Forecasts for specialist pig farms are subject to a considerable degree of uncertainty, reflecting both the structure of the sector and the relatively small sample of these farms in the Farm Business Survey in England. The average FBI for specialist pig farms in 2023/24 is expected to increase by 14% to around £155,000. Lower costs, particularly for feed (linked to price decreases for feed ingredients such as feed wheat and feed barley) are forecast to be one of the main drivers. Another factor is expected to be increased output from pig enterprises reflecting reasonably steady prices for finished pigs, stores and weaners.
Incomes on mixed farms in England are forecast to just over a third higher than 2023/24 at £30,000. The changes reported previously for specialist farm types will all influence incomes for this farm type.
Tables 3.1a and 3.1b Farm Business Income by country and type of farm (average Farm Business Income per farm, £/farm)
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Table 3.1a Farm Business Income by country and type of farm (average Farm Business Income per farm at current prices, £/farm)
| Standard Output Typology | 2021/22 | 2022/23 | 2023/24 | 2024/25 (Provisional) |
|---|---|---|---|---|
| England | ||||
| Cereals | 120,000 | 146,500 | 39,500 | 27,000 |
| General cropping | 145,500 | 126,000 | 95,500 | 108,000 |
| Dairy | 140,000 | 224,500 | 71,000 | 176,000 |
| Grazing livestock (lowland) | 34,000 | 23,000 | 17,500 | 28,000 |
| Grazing livestock (LFA) | 43,000 | 27,000 | 23,500 | 28,000 |
| Specialist pigs | 12,000 | 72,500 | 136,000 | 155,000 |
| Specialist poultry | 138,000 | 117,000 | 143,500 | [x] |
| Mixed | 74,000 | 69,000 | 22,500 | 30,000 |
| Wales | ||||
| Dairy | 88,000 | 165,000 | 67,500 | [x] |
| Grazing livestock (lowland) | 26,500 | 18,500 | 23,000 | [x] |
| Grazing livestock (LFA) | 38,500 | 24,500 | 28,500 | [x] |
| Scotland | ||||
| Cereals | 88,000 | 98,500 | 39,000 | [x] |
| General cropping | 85,500 | 167,000 | 83,500 | [x] |
| Dairy | 164,000 | 249,500 | 116,500 | [x] |
| Grazing livestock (lowland) | 32,000 | 19,500 | 2,500 | [x] |
| Grazing livestock (LFA) | 24,000 | 24,000 | 17,500 | [x] |
| Mixed | 61,500 | 85,000 | 43,500 | [x] |
| Northern Ireland | ||||
| Dairy | 83,000 | 123,000 | [x] | [x] |
| Grazing livestock (LFA) | 23,000 | 18,000 | [x] | [x] |
Table 3.1b Farm Business Income by type of farm in the UK (average Farm Business Income per farm, £/farm)
| Standard Output Typology | 2021/22 | 2022/23 | 2023/24 | 2024/25 (Provisional) |
|---|---|---|---|---|
| At current prices | ||||
| Cereals | 115,500 | 140,500 | 39,000 | [x] |
| General cropping | 132,500 | 134,500 | 93,500 | [x] |
| Dairy | 119,500 | 191,000 | 74,000 | [x] |
| Grazing livestock (lowland) | 32,500 | 22,000 | 17,000 | [x] |
| Grazing livestock (LFA) | 33,000 | 23,500 | 21,000 | [x] |
| Specialist pigs | 14,000 | 72,500 | 136,000 | [x] |
| Specialist poultry | 138,000 | 117,000 | 143,500 | [x] |
| Mixed | 71,500 | 71,000 | 26,500 | [x] |
| All types (including Horticulture) | 72,000 | 82,500 | 41,500 | [x] |
| In real terms (at 2023/24 prices) | ||||
| Cereals | 131,000 | 148,500 | 39,000 | [x] |
| General cropping | 150,000 | 142,500 | 93,500 | [x] |
| Dairy | 135,500 | 202,000 | 74,000 | [x] |
| Grazing livestock (lowland) | 36,500 | 23,500 | 17,000 | [x] |
| Grazing livestock (LFA) | 37,500 | 25,000 | 21,000 | [x] |
| Specialist pigs | 16,000 | 77,000 | 136,000 | [x] |
| Specialist poultry | 156,500 | 123,500 | 143,500 | [x] |
| Mixed | 81,000 | 75,000 | 26,500 | [x] |
| All types (including Horticulture) | 82,000 | 87,500 | 41,500 | [x] |
Notes for table 3.1a and 3.1b:
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[x] data unavailable.
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Years are accounting years ending on average in February.
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England data for 2022/23 onwards are based on 2017 Standard Output coefficients. All other data are based on 2013 Standard Output coefficients.
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Figures for 2021/22 to 2023/24 rounded to nearest £500.
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Forecast figures for 2024/25 rounded to the nearest £1,000. These figures are provisional and subject to revision.
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Table 3.1a figures are at current prices.
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Table 3.1b figures are shown at current prices and in real terms. Real term figures are adjusted for inflation using GDP deflator.
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Table 3.1b UK farm type averages include data for some member countries that are not presented separately in the country level breakdown at Table 3.1a. Data for 2023/24 are for Great Britain only.
Download the full Farming Income dataset
Distribution of farm incomes and performance
Table 3.2a to 3.2c shows the variation in the level of Farm Business Income (FBI), Net Farm Income and Cash Income across farms in England, Wales and Scotland for 2023/24.
In 2023/24, 29% of farms in Great Britain failed to make a positive FBI compared to 17% in 2022/23, although there was some variation between countries with Wales seeing the lowest proportion at 24% of farms. Just over half of farms fell into the lower income brackets (less than £20,000). At the top end of the scale, 28% of farms in Great Britain had an FBI of more than £50,000 (compared to 41% in 2022/23). There was again some variation between countries in this highest income category. For England the proportion of farms was 30% and for Scotland 26%, while for Wales the proportion of farms was 22%.
A greater proportion of farms fall into lower band income ranges for Net Farm Income. This is because Net Farm Income is a narrower measure of income; it is net of an imputed rent on owned land and an imputed cost for unpaid labour (apart from farmer and spouse). On this basis a quarter of farms in Great Britain failed to make a profit.
For comparison, the full distribution of farm incomes for 2022/23 can be found in Chapter 3 of the 2023 Agriculture in the UK.
Tables 3.2a to 3.2c All farm types: distribution of farm incomes by country 2023/24 (percentage of farms)
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Table 3.2a Farm Business Income (percentage of farms)
| Farm Business Income | England | Wales | Scotland | Great Britain |
|---|---|---|---|---|
| Less than zero | 30% | 24% | 27% | 29% |
| 0 to less than £5,000 | 5% | 7% | 6% | 5% |
| £5,000 to less than £10,000 | 6% | 7% | 10% | 7% |
| £10,000 to less than £20,000 | 10% | 14% | 11% | 10% |
| £20,000 to less than £30,000 | 8% | 12% | 10% | 9% |
| £30,000 to less than £50,000 | 12% | 14% | 11% | 12% |
| £50,000 and over | 30% | 22% | 26% | 28% |
| Average (£ thousand per farm) | 45 | 29 | 36 | 42 |
Table 3.2b Net Farm Income (percentage of farms)
| Net Farm Income | England | Wales | Scotland | Great Britain |
|---|---|---|---|---|
| Less than zero | 42% | 36% | 40% | 41% |
| 0 to less than £5,000 | 5% | 8% | 6% | 6% |
| £5,000 to less than £10,000 | 7% | 8% | 8% | 7% |
| £10,000 to less than £20,000 | 8% | 13% | 11% | 9% |
| £20,000 to less than £30,000 | 6% | 9% | 9% | 7% |
| £30,000 to less than £50,000 | 7% | 11% | 10% | 8% |
| £50,000 and over | 25% | 15% | 16% | 22% |
| Average (£ thousand per farm) | 35 | 19 | 19 | 31 |
Table 3.2c Cash Income (percentage of farms)
| Cash Income | England | Wales | Scotland | Great Britain |
|---|---|---|---|---|
| Less than zero | 14% | 10% | 11% | 13% |
| 0 to less than £5,000 | 4% | 4% | 2% | 3% |
| £5,000 to less than £10,000 | 5% | 5% | 6% | 5% |
| £10,000 to less than £20,000 | 9% | 14% | 8% | 10% |
| £20,000 to less than £30,000 | 8% | 12% | 9% | 8% |
| £30,000 to less than £50,000 | 14% | 19% | 16% | 15% |
| £50,000 and over | 47% | 37% | 49% | 46% |
| Average (£ thousand per farm) | 96 | 58 | 88 | 90 |
Download the full Farming Income dataset
Figure 3.1 shows the differences in performance of farms in England for 2023/24. Performance is measured as “£ of output per £100 of input”. An imputed value for unpaid labour is added to the input costs. The chart illustrates the significant variation in performance with 61% of farms failing to recover their costs in that year.
Figure 3.1 Distribution of performance across farms 2023/24: England only (£ output per £100 input)
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| £ output per £100 input | % |
|---|---|
| 0 < 60 | 10.5% |
| 60 < 70 | 8.7% |
| 70 < 80 | 12.0% |
| 80 < 90 | 15.0% |
| 90 < 100 | 14.9% |
| 100 < 110 | 15.4% |
| 110 < 120 | 9.2% |
| 120 < 130 | 6.8% |
| 130 < 140 | 3.3% |
| 140 < 150 | 1.2% |
| 150 < 160 | 1.2% |
| 160 < 170 | 0.7% |
| 170 and over | 1.2% |
Source: Farm Business Survey
Notes:
- Performance is based on the ratio of farm business output to farm business costs which includes an adjustment for unpaid labour.
Download the full Farming Income dataset
Definitions and explanatory note
There are two main measures of agricultural income which are closely related and complement each other. Total Income from Farming provides an estimate of total income for agriculture as a whole whereas Farm Business Income provides a breakdown of average incomes by farm type. Table 3.3 compares the two measures in terms of definition, methodology and main similarities and differences.
Table 3.3 Comparison table showing main similarities and differences between Total Income from Farming (TIFF) and Farm Business Income (FBI) statistics
| Total Income from Farming | Farm Business Income | |
|---|---|---|
| Geographic scope | United Kingdom | England |
| Reference period | Calendar year | 12-month period March to February |
| Definition | Represents business profits and remuneration for work done by owners and other unpaid workers. | Represents the return to all unpaid labour (farmers, spouses and others with an entrepreneurial interest in the farm business) and to all their capital invested in the farm business including land and farm buildings. |
| Data source | A wide range of data sources including industry data and Defra survey data (i.e. the Farm Business Survey). | Farm Business Survey: annual sample surveys run by each of the four UK countries. |
| Method | Gross output at basic prices | Total output from agriculture (includes crop and livestock valuation change) |
| plus Other subsidies less taxes | plus Total output from agri-environment schemes | |
| less Total intermediate consumption, rent, paid labour | plus Total output from diversification | |
| less Total consumption of fixed capital (depreciation) | plus Single/Basic payment scheme | |
| less Interest | less Expenditure (costs, overheads, fuel, repairs, rent, depreciation, paid labour) | |
| plus Profit / (loss) on sale of fixed assets. | ||
| Differences | The main aggregate measure of farm income used to assess agriculture as a whole. | The preferred measure for comparisons of farm type. |
| Treatment of stocks: the physical changes in stocks valued at average calendar year prices. | Treatment of stocks: the change in the book value of stocks between the start and end of the accounting year. | |
| Similarities | Complete range of on-farm activities including income from diversified activities where they are included in the farm accounts. | Complete range of on-farm activities including income from diversified activities where they are included in the farm accounts. |
| Does not subtract imputed rent for owner occupiers. | Does not subtract imputed rent for owner occupiers. |
Revisions
Compared with the provisional 2023/24 results published in the 2023 edition of AUK, the outturn (based on actual survey results from the Farm Business Survey) for specialist pig farms was higher than forecast due to an underestimation of output from both crops and livestock and also of output related to diversification activities. For all other farm types, the forecasts were within the confidence intervals of the survey outturns.
No England forecasts were produced for specialist poultry or horticulture farms in 2024/25 as these are subject to a considerable degree of uncertainty, reflecting both the structure of these sectors and the relatively small sample of these farms in the Farm Business Survey. These factors meant it was not possible to produce robust forecast estimates.