26th March 2026
Farm incomes rose in 2024-25, after sharp declines in 2023-24. Increases in income are largely driven by high livestock prices, while total input costs remained stable. Decreases in costs for fertiliser and feed were offset by increases in labour and land and property costs.
Average income across all farm types rose 30% from the previous year to £58,800. Income is measured as profit after costs.
Falls in cereal production and prices resulted in a drop in income to £28,600 for cereal farms. General cropping farm incomes dropped slightly to £165,300, but were supported by high potato outputs, driven by high prices.
Average incomes of arable farms remain higher than those of livestock farms. But within the sector, some farms make large profits while others make a loss. In 2024-25, 40% of cereal and 25% of general cropping farms are loss-making. More farms made a loss than in the previous year.
Dairy farm incomes rose by 85% to an average of £218,500, the second highest income in our time series. This was driven by high cattle and milk prices.
Livestock farms, which make up 60% of commercial farms, also saw rises in income on average, driven by higher cattle output. LFA cattle farms saw the highest incomes among livestock farms, rising 88% to £40,800.