Agricultural income in the UK - Data and Analysis (2000-2033)

Agricultural income depends on a variety of drivers including weather, animal feed prices, fertiliser prices, subsidies, supermarket buying power and price received for final produce. The interplay between these factors is the cause of significant year-on-year swings in agricultural income.IBISWorld estimates that total farming income has grown at a compound annual rate of 2.3% over the five years through 2026, to reach £8.7 billion. In 2021, the easing of COVID-19 restrictions and the reopening of food service and catering businesses supported demand, while inflation placed upward pressure on prices. Income rose further in 2022 as farmgate prices reached record levels, although sharp increases in feed, fertiliser and energy costs, termed "agflation", squeezed margins. In 2023, milk farmgate prices fell after the historical highs of 2022, driven by an increase in supply and weaker demand, while total crop output decreased by 9.7%, causing income to fall. Income recovered in 2024 as the price index for agricultural outputs rose by 2.5%, while the index for agricultural inputs fell by 6%. In 2025, total income from farming rose by 20.5% to £8.4 billion, with high finished cattle prices lifting beef output by 23% and elevated farmgate milk prices pushing dairy output above £7 billion. This more than offset a 3.1% fall in crop output, driven by lower values of barley, sugar beet and potatoes.In 2026, agricultural income is expected to grow by 3.3% as livestock prices remain firm. However, growth is being restrained by renewed cost inflation, as the Iranian conflict has sharply increased UK farmers' costs, especially fuel and fertiliser, with red diesel prices up by about 75%. The government has responded by cutting duty on red diesel, though the UK's farming unions report that fuel and fertiliser costs are rising faster than the prices farmers receive for their products.