Total Income from Farming (TIFF) in England increased by 41% last year compared to 2016.
It brings the amount earned by English farms up by £1,191 million, reaching £4,077 million last year.
The figure has significance for the whole of the UK as farms in the country account for more than two-thirds of the UK’s £5,743 million Total Income From Farming (TIFF).
The main drivers of this change were:
- An increase of £2,043 million (12%) in gross output to £19,442 million;
- A 14% increase in crop output was driven by increases in both prices and production for cereals and industrial crops;
- A 10% increase in livestock for meat was driven by price increases;
- A 22% increase in livestock products was driven by an increase in milk price.
However, over the same period, the cost of intermediate consumption rose by 7% driven by higher prices, in particular, for animal feed.
Over the same period, direct payments to English farmers also fell by £52 million (2%) to £2,063 million as a result of the slightly stronger sterling against the euro.
The greatest contribution to the total value of output was the production of milk, which accounted for £2,733 million, followed by poultry meat at £2,018 million.
Also contributing:
- Wheat – £1,835 million
- Cattle reared for meat – £1,447 million;
- Plants and flowers – £1,266; and
- Fresh vegetables – £1,224 million.
Gross Value Added at basic price, which identifies agriculture’s contribution to the Gross Domestic Product (GDP) increased by £1,303 million (20%) to £7,799 million.
How was the increase made up?
The value of milk, the largest contributor to the value of outputs, increased by £584 million (27%) to £2,733 million driven by increases in both price and yield.
The increases for cattle and pig meat were entirely price driven whereas increases for sheep meat and poultry meat were driven by both price and volume.
In England, the overall value of crops increased by £996 million to £8,166 million and accounted for 44% of the total value of agricultural output. This was mainly driven by increases in both volumes and prices for cereals and industrial crops.
Wheat saw the biggest value increase; up by £340 million (23%) to £1,835 million. This was mainly driven by a significant increase in price, whilst volume was also up slightly on 2016.
Oilseed rape and sugar beet saw the largest percentage increases, rising 42% and 52%, respectively.
The value of oilseed rape increased by £211 million to £713 million due to increases in both price and volume, with the yield matching the record high seen in 2015.
Similarly, the abolition of EU sugar quotas led to a 30% increase in the cropped area of English sugar beet. Combined with increased yields, the value of harvests increased by £78 million to £228 million.
The value of livestock primarily for meat increased by £471 million (10%) to £5,356 million, with increases seen across all sectors.
Costs
Consumables such as animal feed, electricity and fertiliser all saw large price hikes through the year putting intermediate consumption costs up by £740 million (7%) to £11,643 million.
This was mainly driven by a 14% increase in animal feed costs. The cost of animal feed, the largest contributor to the value of inputs, increased by £428 million to £3,416 million as a result of both higher prices and volume.
What is Total Income from Farming?
Total Income from Farming is the amount generated by production within the agriculture industry including subsidies.
The measure is designed to show the performance of the whole of the agricultural industry and represents business profits and remuneration for work done by owners and other unpaid workers.
It excludes changes in the values of assets – including stocks – due to price changes but includes non-agricultural activities such as further processing or tourist activities where these cannot be separated from the agricultural business.
It is the preferred measure of aggregate income for the agricultural industry conforming to internationally-agreed national accounting principles required by the UK National Accounts.
