Like all areas of business and commerce farming has had a difficult year and will not escape 2020 unharmed. The key messages in DEFRA’s recent total income from farming forecast are: (when compared to 2019)
- Total Income from Farming is expected to be £4,151 million, a decrease of £1,127 million(-21%)
- Agriculture is expected to contribute £9,360 million to the national economy (Gross Value Added), a decrease of £1,048 million (-10%)
- Weather conditions coupled with the Covid-19 pandemic have been key influencing factors on agricultural income this year. The variable and extreme weather conditions affected crop production and lowered yields whilst the global pandemic led to supply chain disruption and impacted on farm-gate prices.
Figure 1: Total Income from Farming in the United Kingdom 2010 to 2020
Consideration needs to be given to the reduction in total farm income in 2020 alongside the reduction in farm subsidies confirmed taking effect from 2021.
If you have any questions or queries please do not hesitate to call Hennie or Georgina or 01285 883 740.
