A report in the Farmers Weekly says that incomes on English livestock farms are due to fall dramatically in 2011 according to Defra estimates. The report does, however, suggest that arable farmers will fare much better over the coming year.
Defra's Farm Business Income (FBI) forecast for 2010-2011 suggests that specialist pig producers will be hit hardest by soaring feed costs and lower prices, with average incomes forecast to be 68% down in real terms on the 2009-10 season.
FBI on grazing livestock is forecast to halve over the same period while dairy farms are likely to see a 28% fall as higher costs outweigh an increase in the average milk price for the year.
Defra predicts a "substantial increase" in incomes on arable farms on the back of higher prices for cereals, oilseed rape and potatoes. FBI for 2010-2011 is forecast to be up 64% on the previous season on cereal units and up 50% on general cropping farms.