Published as part of 鈥� which measure the total profit from all UK farming businesses during the past calendar year 鈥� this drop translates to a fall of 拢1.1 billion from 2022 giving an overall total income of 拢4.5 billion for England.
The fall follows a spike in 2022 figures, driven by high global costs pushing up commodity prices following the war in Ukraine.
Farming鈥檚 overall contribution to England鈥檚 economy also fell by 拢1bn or 8.7% compared with 2022.
Income from diversification saw a small increase however, rising from 拢1.321bn to 拢1.393bn.
鈥榁olatile environment鈥�
Responding to the figures, NFU President Tom Bradshaw said the last few years had demonstrated the 鈥渧olatile environment鈥� in which farmers and growers are trying to make a living.
鈥淲e have moved from high commodity prices and soaring production costs in 2022 caused by the tragic situation in Ukraine, to much lower income figures in a weather-affected 2023, as commodity prices fell but production costs remained high,鈥� he said.
Since the survey ended, we have seen record levels of rain and flooding the NFU President added, which has contributed to a 鈥渉uge drop in confidence among farmers and put a real question mark over this year鈥檚 harvest鈥�.
鈥�While farmers are well used to dealing with variation year on year, the volatility we鈥檝e seen in the last few years isn鈥檛 sustainable.鈥�
NFU President Tom Bradshaw
AHDB鈥檚 latest planning and variety survey revealed a 鈥榙ramatic decline鈥� in cereals and oilseed rape planted this year, down by 5% in 2024 to the lowest level for over two decades with the total wheat area estimated to be the second smallest since 1981.
Crop and livestock output
According to Defra鈥檚 figures crop output fell by 13.1% in 2023, with wheat seeing the largest decrease at 拢1.2bn less than in 2022.
鈥楲ow commodity prices combined with a poor yield resulted in substantial decreases in the value of many crop items,鈥� Defra said.
Both the area and yield of wheat planted in England fell between 2022 and 2023 by 5.3% and 5.6% respectively.
Defra cited an 鈥榚asing of prices鈥� in the UK from historic highs in 2022 as contributing to a decline in the value with milling wheat and feed wheat prices down by 13.0% and 21.6% respectively.
In addition, poor weather led to variable wheat quality,鈥� reducing the percentage of homegrown wheat that could be sold at the highest price category鈥�.
Total livestock output in 2023 remained at 拢12.4 billion, with an increase in poultry output of 拢380 million offsetting a 拢353 million decrease in the value of milk.
Costs remain high
Defra鈥檚 figures showed that the cost of production totalled 拢15bn.
鈥楾he value of most intermediate consumption items remained stable with the notable exception of fertiliser, which decreased by 拢337 million following easing of prices on the global market,鈥� Defra said.
The largest contribution to intermediate consumption was animal feed, Defra said, contributing 拢5,459 million in 2023.
鈥淲hile farmers are well used to dealing with variation year on year, the volatility we鈥檝e seen in the last few years isn鈥檛 sustainable,鈥� Tom added. 鈥淔ood security is national security, and that鈥檚 why we need the new government to be prioritising food production in its policy-making.鈥�
