RISING COSTS LEAVE FARM INCOMES AT A STANDSTILL

The figures, released by Defra today, reveal that in 2005 farm incomes dropped by 11.4% in real terms as a result of rising costs over the past 12 months with farmers and growers unable to pass these increases up the supply chain*.

Energy costs are the main area of concern with expenditure on energy inputs rising, despite increased efficiency, by almost 20% in the past 12 months. Above average increases were also recorded on fertilizers, labour and the costs relating to servicing debts and bank transactions. The figures reveal that farmers and growers were unable to recoup these increases through the market as farm gate prices either remained steady or fell over the past 12 months.

NFU

Defra stat (pdf)