NFU Cymru has welcomed the publication of farm income figures for Wales which show an average increase of 15 per cent in business income across all farm types.
Commenting on the figures published today (30 November), NFU Cymru President Ed Bailey said, 'I am encouraged by these figures and the positive headline performance across the different sectors is undoubtedly good news, a marked change from the decade-long lows we witnessed before 2008. It is profitability that underpins industry confidence and generates investment in the whole supply chain, which in turn boosts the Welsh economy by creating jobs and economic growth. Profitability is also vital if, as an industry, we are to attract young farmers and new entrants into agriculture.
'Farm incomes are of course fickle and reflect very much the volatility of the market place. Today’s figures, which cover the period up until the end of February 2012, are in stark contrast to the 2010 - 2011 figures, which for example showed a 22 per cent fall in Less Favoured Area livestock farm income.
'Whilst we can take much heart from the figures that have come out today, we must of course remember that a very difficult winter lies ahead for Wales’ farmers with the exceptionally poor harvest leaving many of them very dependent on buying in feed for their animals, and with the price of concentrates having increased by 20 to 30 per cent this is certain to hit the bottom line hard.'
Mr Bailey said that, with the increase in the strength of the pound against the Euro, the value of the Single Farm Payment would also be down this year by around eight per cent, another factor certain to hit future farm profitability.
Mr Bailey added, 'This week we heard from the Deputy Minister Alun Davies’ office that 91 per cent of farmers in Wales will receive their Single Farm Payment on the first day of the payment window. The Deputy Minister and his staff are to be congratulated on this excellent achievement because such prompt payments are certainly a considerable help to managing cash flow on the farm. I now very much hope that the remaining nine per cent of farmers will be paid by the Welsh Government in the very near future.'