Average Farm Business Income (FBI) on pig farms in England is expected to increase by 14% to £155,000 on specialist pig farms in 2024/25, according to new Defra figures.
The figures come with a high degree of uncertainty – the Farm Business Survey (FBS) sample for specialist pig farms is relatively small, meaning that individual farms can have a large influence on the results and the results should be treated with caution.
However, the trend reflects a period of good, stable pig prices and lower feed costs for pig farms, reflected in seven successive quarters of positive margins, prior to the current quarter, according to AHDB estimates.
Defra statisticians say the increase in 2024/25 forecast pig farm business income is largely driven by lower input costs, which are predicted to fall by around 2%.
Feed, which typically accounts for more than 60% of costs for pig farms) is expected to drop by around 5%, tracking the lower value of feed wheat and barley. This decrease, along with lower crop costs is predicted to more than offset smaller rises for other inputs.
A 4% increase in output from pig enterprises will reflect reasonably steady prices for finished pigs, stores and weaners, Defra’s explanation added. Both throughput and average carcase weights are also forecast to be slightly higher.
However, increased pig output will be offset by lower crop output, the reduction in Basic Payment and a fall in agri-environment income, expected to be around 9% lower when related costs are taken into account, meaning that total output at the farm level will remain static compared to 2023/24.
The predicted pig sector FBI of £155,000 compares with a low of £11,800 in 2021/22. FBI nearly doubled from £72,500 in 2022/23 to £135,800 in 2023/24, before the latest increase.
All sectors, except cereals, are forecast to see increased incomes in 2024/25, with dairy seeing a massive 148% increase to £176,000. Cereal incomes, however, are forecast to be 32% down to £27,000.
Welcome news
Food security minister Daniel Zeichner said: “Today’s statistics show that average Farm Business Incomes across the country are forecast to rise in the first year of this Government. This is welcome news, but we recognise there is more to do.
“This government will go further to ensure farming becomes more profitable for the future by backing British produce, protecting farmers in trade deals, improving supply chain fairness and reforming planning rules on farms to support food security.
“It is only by building a more profitable sector that we can improve resilience to the shocks that periodically disrupt farming including severe flooding, drought and animal disease.”