Welsh Dairy Farms Face Economic Challenges as Incomes Plummet

According to the latest Farm Income Data report released by the Welsh government, farm business incomes in Wales have dipped dramatically by 39% year-on-year, settling at £30,700 per farm. This downturn has been felt most acutely in the dairy sector.

In the financial year of 2023-2024, the income of dairy farms plummeted by 59% to £67,500, marking a significant reduction from the unprecedented high of the previous year, 2022-2023.

Similarly, there was a decline in income for cattle and sheep operations on Less Favoured Areas (LFA) farms, which saw a 9% decrease to £22,000 in the same period.

Across all farm types, costs have surged by an average of 4% year-on-year. This rise is largely attributed to general farming expenses, which spiked by an average of 20%, or approximately £3,800, as outlined in the report.

The Farmers' Union of Wales (FUW) commented on the troubling figures, highlighting the "economic reality of attempting to maintain levels of profitability against a backdrop of increasing costs and red tape." FUW deputy president, Dai Miles, pointed out that dairy farms have faced particularly challenging times due to a 10% increase in overall farm business costs, coupled with income reductions.

Mr. Miles further noted, "Across the board, however, the proportion of farm businesses in Wales generating a negative income continues to increase to over 20%." He emphasized the importance of the forthcoming Sustainable Farming Scheme for providing necessary economic stability.

These insights were gathered from the annual Farm Business Survey (FBS) conducted by the Welsh government, providing a comprehensive view of the financial landscape faced by Welsh farms.