Chapter 5: Productivity
Published 10 July 2025
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Summary
Key results for 2024 compared to 2023:
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Total Factor Productivity is estimated to have decreased by 1.4% between 2023 and 2024. This was driven by an increase in the volume of inputs, which was only partially offset by a small increase in the volume of outputs.
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The volume of all outputs increased by 0.2%. There was a mixed picture for crop outputs with substantial decreases in the volumes of most cereals and industrial crops, driven predominantly by reductions in wheat and oilseed rape volumes due to wet weather conditions during planting and pest pressures respectively. This was only partially offset by increases in the volumes of potatoes, fresh vegetables and horticultural products, fruit and ‘other crops’, to give an overall reduction in total crop output volume of 5.1%. There were increases in all major livestock output volumes except for sheep, where disease pressures and wet weather during the spring lambing period led to a fall in sheep meat production. In other livestock sectors high prices drove higher production volumes, resulting in a 3.5% increase in the volume of total livestock output.
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The volume of all inputs increased by 1.6%. There was a mixture of increases and decreases in volume across inputs used. For intermediate consumption, seeds showed the largest increase (+8.0%) due to an increased 2024 spring crop area in compensation for failed plantings in 2023. Animal feed also saw an increase in volume of 5.1% due to an increased demand for feed following increases in production in the beef and dairy sectors.
Figure 5.1: Summary of key indices 2023 to 2024 (1973 = 100)
Enquiries: farmaccounts@defra.gov.uk
| Item | 2023 | 2024 |
|---|---|---|
| All outputs | 131.9 | 132.1 |
| All inputs | 86.1 | 87.5 |
| Total factor productivity | 153.2 | 151.0 |
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Introduction
This chapter presents the estimate of Total Factor Productivity (TFP) of the UK agricultural industry for 2024, also published separately at Total factor productivity of the agricultural industry - GOV.UK. It also presents volume indices for inputs and outputs. These figures include updates to the figures published in Agriculture in the United Kingdom 2023 following data updates.
TFP is a measure of how well inputs are converted into outputs, giving an indication of the efficiency and competitiveness of the agricultural industry. Although external factors such as weather conditions or disease outbreaks may have a short-term impact on productivity, it is developments that improve productivity over a longer period that constitute one of the main drivers of agricultural income.
TFP estimates are derived from the aggregate farm accounts data used to calculate UK Total Income from Farming (TIFF) presented in Chapter 4: Accounts.
Long term trends
Figure 5.2: Long term trends in TFP of the UK agricultural industry 1973 to 2024 (1973 = 100)
Enquiries: farmaccounts@defra.gov.uk
Text description of Figure 5.2: Figure 5.2 is a line chart showing the trend in Total Factor Productivity from 1973 to 2024. The chart is presented as an index (1973 = 100). Data is shown for all inputs, all outputs and total factor productivity.
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TFP of the agricultural industry in the United Kingdom decreased by 1.4% between 2023 and 2024. This was driven by an increase in the volume of inputs, only partially offset by an increase in the volume of outputs. As shown in Figure 5.2, this continues the pattern of annual fluctuations seen from around the year 2000 onwards. Despite this annual variability, the long-term trend is still one of slow but overall improvement in TFP.
Since the series began in 1973, TFP has increased by 51%, driven by an increase in the volume of all outputs of 32% and a decrease in the volume of all inputs of 13%.
Annual changes, 2023 to 2024
All outputs
‘All outputs’ represents the change in volume (expressed as an index based to 1973) of all outputs sold off the farm, excluding transactions within the agricultural industry. Therefore, gross fixed capital formation of livestock, transactions within the industry e.g. inter/intra farm transfer of wheat, barley etc. and contract work (agricultural services) are excluded from the calculation.
Table 5.1: Volume indices for outputs, 2023 to 2024 (1973 = 100)
Enquiries: farmaccounts@defra.gov.uk
| Item | 2023 | 2024 | Annual Change |
|---|---|---|---|
| Output of cereals | 171.3 | 144.8 | -15% |
| Output of industrial crops | 241.5 | 201.8 | -16% |
| Output of forage plants | 99.3 | 99.3 | 0.0% |
| Output of vegetables and horticultural products | 79.0 | 80.1 | 1.3% |
| Output of potatoes | 84.4 | 92.9 | 10% |
| Output of fruit | 85.9 | 86.0 | 0.2% |
| Output of other crop products | 119.2 | 120.4 | 1.0% |
| Total crop output | 135.1 | 128.1 | -5.1% |
| Output of livestock (meat) | 124.9 | 129.7 | 3.8% |
| Output of livestock products | 107.6 | 110.9 | 3.0% |
| Total livestock output | 118.1 | 122.3 | 3.5% |
| Diversification | 589.1 | 579.6 | -1.6% |
| All outputs | 131.9 | 132.1 | 0.2% |
Notes
- Potato prices and yield information were previously obtained from the AHDB who stopped producing data midway through 2021. From 2022 we have estimated yields based on input from sector representatives, devolved administrations and coverage of the sector in the farming press.
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The volume of all outputs increased by 0.2% between 2023 and 2024. This was the result of an increase in the volume of livestock output (+3.5%) only partially offset by a decrease in the volume of crop output (-5.1%).
The biggest change within total livestock output was in the output of livestock for meat, which increased by 3.8%. This was driven by increases in the volume of production of all livestock animals for meat except for sheep. Total home-fed production of beef and veal increased by 3.8% to 937 thousand tonnes due to increased demand and higher prices for deadweight prime cattle, particularly in the latter half of the year. Total home-fed pigmeat production increased by 3.9% to 920 thousand, driven by higher dressed carcase weights in 2024, with clean pigs increasing by 0.9% to 90.0 kilograms per head and sows and boars increasing by 5.3% to 150.7 kilograms per head. Total home-fed poultry production increased by 2.9% to 2,031 thousand tonnes in response to easing input costs and increased demand. In contrast, total home-fed sheep meat production fell by 6.5% to 277 thousand tonnes due to wet weather in spring disrupting lambing, as well as disease pressures.
The largest percentage decrease within total crop output between 2023 and 2024 was in industrial crops, which decreased by 16%. The main industrial crop, oilseed rape, fell by 32%. This was driven by a 25% decrease in oilseed rape area to 293 thousand hectares and a 9.7% decrease in yield from 3.1 tonnes per hectare in 2023 to 2.8 tonnes per hectare in 2024. Consequently, production fell by 32% from 2023 to 824 thousand tonnes. As in previous years, this decrease in UK volumes was driven by pest pressure from the Cabbage Stem Flea Beetle along with challenging weather conditions and plentiful supplies of soybean from South America.
All inputs
‘All inputs and entrepreneurial labour’ represents the change in volume (expressed as an index based to 1973) of all goods and services purchased and consumed, excluding transactions within the agricultural industry.
Table 5.2: Volume indices for inputs, 2023 to 2024 (1973 = 100)
Enquiries: farmaccounts@defra.gov.uk
| Item | 2023 | 2024 | Annual Change |
|---|---|---|---|
| Seeds | 133.8 | 144.5 | 8.0% |
| Energy | 45.3 | 46.7 | 2.9% |
| Fertilisers | 79.4 | 73.6 | -7.3% |
| Plant protection products | 293.6 | 289.8 | -1.3% |
| Veterinary expenses | 130.3 | 125.4 | -3.8% |
| Animal feed | 127.7 | 134.2 | 5.1% |
| Total maintenance | 53.6 | 53.1 | -1.1% |
| Bank charges | 100.0 | 100.0 | 0.0% |
| Other goods and services | 132.0 | 132.9 | 0.7% |
| Intermediate consumption | 103.2 | 104.7 | 1.4% |
| Consumption of fixed capital | 126.1 | 126.6 | 0.4% |
| All labour | 51.2 | 52.9 | 3.3% |
| Land | 96.1 | 94.7 | -1.5% |
| All inputs and entrepreneurial labour | 86.1 | 87.5 | 1.6% |
Notes
- Bank charges has replaced the name of the item FISIM (Financial Intermediary Services Indirectly Measured) for clarity following feedback on our statistical release.
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The volume of all inputs and entrepreneurial labour increased by 1.6% between 2023 and 2024. This increase was driven mainly by increases for seeds (+8.0%) and animal feed (+5.1%) that, together with other smaller increases, more than offset the 7.3% decrease in fertilisers.
The volume of seeds used in a year is influenced by planting timing and conditions, and crop areas. Wet weather conditions in 2023 caused a reduction in the winter crop areas for the 2024 harvest, as a result of failed plantings and waterlogged seed beds. To compensate for this, in 2024 there was an increase in spring crop areas and winter cereal areas planted in autumn.
Animal feed includes compound animal feed and straight animal feed. In 2024, the total volume of animal feed increased by 5.1% from 2024. This increase was driven by a 4.3% rise in compound feed and a 7.0% increase in straight feed. Strong demand from the cattle and sheep sectors drove increased volumes of feed despite decreased demand from the pig and poultry sector. In 2024, lower input costs along with higher beef and lamb prices and a stronger dairy sector, stimulated production and increased demand for feed.
Partial productivity
Partial productivity shows the impact key inputs have on productivity. It measures total outputs against a part of the inputs.
Table 5.3: Partial factor productivity, 2023 to 2024 (1973 = 100)
Enquiries: farmaccounts@defra.gov.uk
| Item | 2023 | 2024 | Annual Change |
|---|---|---|---|
| Productivity by intermediate consumption | 127.8 | 126.2 | -1.2% |
| Productivity by capital consumption | 104.6 | 104.4 | -0.3% |
| Productivity by labour | 257.6 | 249.8 | -3.0% |
| Productivity by land | 137.2 | 139.6 | 1.7% |
Figure 5.3: Long term trends in partial productivity indicators 1973 to 2024 (1973 = 100)
Enquiries: farmaccounts@defra.gov.uk
Text description of Figure 5.3: Figure 5.3 is a line chart showing the long term trend in partial productivity indicators from 1973 to 2024. The chart is presented as an index (1973 = 100). Data is shown for labour, land, intermediate consumption and capital consumption.
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Table 5.3 and Figure 5.3 show that labour is the key input driving productivity gains. Productivity by labour shows a steady increase over the whole period since 1973. Labour volumes are now approximately half of what they were in 1973. However, more recent growth in labour productivity is due to increased output rather than a reduction in labour volume.
Revisions
Figures for 2024 are provisional and subject to revision.
As a result of more data becoming available over time there have been minor revisions to earlier years in this release. These revisions are intended to enhance the precision of these estimates. Sometimes additional revisions are necessary to refine the methodology or correct historical errors.
There have been small changes to data from 2010 - 2023 as published in AUK 2023. This is as result of minor methodological changes which have been made to streamline our data processing. TFP, as outlined elsewhere in this release, is primarily focused on trends and these methodological changes have not impacted the trend in TFP from 2010, which has been one of increased productivity.