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CLA Response to DEFRA’s Provisional Estimates of Farm Incomes The Country Land and Business Association (CLA) welcomed the small increase in Total Income from Farming (TIFF) in 2006 shown in the figures released by DEFRA today (Wednesday 31 January). Derrick Wilkinson, Senior Economist at the CLA, notes that the figures still show difficult times for farming in the UK: "Much of the increase in the value of output was due to higher prices for cereals, largely a result of poor harvests elsewhere in the world. There were also welcome increases in the value of output in most other sectors, especially beef and potatoes. Notable exceptions were fruit, milk and sugar.
"The improvements in the value of output offset the increases in prices to leave a small improvement in overall income. However, when we deduct the new, decoupled Single Farm payment from the figures we see that the core business of farming lost £209 million. If we were to exclude the estimate of certain forms of diversified activities included in the figures, the total loss to farming would be nearer £1 billion.
"It is critically important for the Government to understand that its ambition to eliminate payments to farmers will devastate the industry. Unless the regulatory and planning regimes facilitate rather than frustrate the efforts of farmers to adjust to market conditions, and that they pay land managers for the full value of the environmental and landscape management services that they provide, we will witness further difficult times ahead." |
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