In 2017 I wrote a piece about the 2016/17 Farm Business Income figures and how they related to farming on Dartmoor. Two years on, the 2018/19 figures have been published and they make for grim reading.
As a result of the cold late spring in 2018 followed by the very hot, dry summer hill-farmers faced increased feed costs. Additionally they received lower prices for store cattle, ewes and ewe hoggs at market. This resulted in a doubling of agricultural losses and a halving of their incomes despite subsidy levels remaining the same compared to 2016/17.
Upland hill-farming is categorised as ‘Grazing livestock (LFA)’
Here are the 2016/17 and 2018/19 figures for comparison.
In 2016/17 the agricultural elements of the hill-farming businesses made on average a loss of -£9400, by 2018/19 this had increased by £12100 to -£21,500. Farm incomes dropped by £11,800 from £27,000 to £15,500.
The final column in the above table shows that in 2016/17 without an subsidy the average hill-farm in England would have lost -£7000, by 2018/19 this had risen to -£18,800.
We are about to enter the third phase of agricultural policy since World War 2: ‘public money for public goods’, following on after the productivist era driven by the 1947 Agricultural Act and the era of ‘environmentalism’ underpinned by the agri-environmental schemes.
The new Public Money for Public Goods policy will see the Basic Payment Scheme and the agri-environment payments phased out and replaced by a new Environmental Land Management Scheme.
Even if all upland hill-farms received on average £34,300 (i.e. the subsidy level paid in 2018/19) for providing ‘public goods’ (carbon storage, water supply, wildlife, archaeology, access and landscape) we will be expecting hill-farmers to live on £15,500 per annum and that’s unsustainable surely?
I’m not sure our policy makers understand this …… but perhaps they do ….. and I won’t even mention the B word and possibility of a ‘no-trade deal’.