Arable farm profits in UK improved sharply in last twelve months
Analysis of financial results from contract-farming agreements shows that net profits rose sharply in the last year, leading to better returns for farmers and contractors.
Bidwells’ analysis of contract-farming agreements is the most comprehensive of its kind and covers nearly 14,000 hectares of mainly arable land.
“These final results from the 2017 harvest, the last sales from which have been made this spring and summer, show the best performance for three years, and to some extent reflect a turnaround in arable farming profitability,” said Ian Ashbridge, farm business consultant and Partner with the firm.
Ashbridge added: “Stronger crop prices and slightly higher support payments contributed to a significant improvement in total income, which climbed £177/ha in 2017-18”.
Overall, the average net profit achieved across farms in the study was £470/ha, a significant improvement on the £293/ha achieved the previous year. This meant that in almost all cases the farmer received their first charge on profits, in full, and there was some rateable profit for the farmer and contractor to share”. ■