Farmers’ earnings have effectively stalled since the mid-1970s, a new study by the Food, Farming and Countryside Commission has revealed.
While productivity has improved and fewer people now work on the land, average annual farm income — at about £32,272 over the last five years — has scarcely budged in real terms for five decades.
The findings come amid farmer protests over a new inheritance tax on agricultural assets, prompting fears that families could be forced to sell land simply to pay the levy. This is compounded by the end of EU subsidies and the wettest 18 months on record, leaving many producers facing some of the toughest trading conditions in memory.
Sharp falls in the price of farm produce are highlighted as a key driver of low incomes. Consolidation among big suppliers of animal feed, fertiliser and machinery has limited farmers’ power to negotiate, while supermarkets buy in bulk and focus on imports, placing further pressure on UK producers’ margins. According to the report, a handful of companies dominate the supply chain for key inputs, such as abattoir services and dairy processing, giving farming communities little room to shop around.
In addition, cheaper, ultra-processed foods have gained popularity among consumers, eroding demand for domestically sourced, higher-welfare produce. As a result, real incomes in other sectors have risen over the same period, but agriculture appears to have been left behind.
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