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Chapter 4: Livestock Farms

Updated 20 December 2024

Applies to England

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The following section provides detailed results for each livestock farm type. Where dataset tables are referred to in the text, these can be found at: https://www.gov.uk/government/statistics/farm-accounts-in-england-data-sets.

Figures are for March to February years, with the most recent year shown ending February 2024. This covers the 2023 harvest and includes the Basic Payment due in the 2023/24 accounting year.

Figure 4.1: Average Farm Business Income for livestock farms in England, broken down by cost centres, 2022/23 and 2023/24

Source: Dataset table 5

Figure notes:
1. The legend is presented in the same order as the bars (read the top row from left to right, then the bottom row from left to right; read the bars from top to bottom), except for lowland grazing livestock, LFA grazing livestock, lowland grazing livestock, LFA grazing livestock and all type farms, where the values for the agriculture cost centre are negative.
2. The data shown are the averages across all farms in the sample, including those that do not have any income within some of the cost centres.

Farm Business Income can be considered as comprising income from four different parts of the business: agriculture, agri-environment, diversification and the Basic Payment Scheme. These are known as cost centres. However, as the methodology to allocate costs to each of the cost centres involves a degree of estimation, results should be interpreted with caution. Details on the methodology can be found under in the FBS technical notes and guidance.

Figure 4.2 Input cost breakdown by farm type in England, 2023/24

Source: Dataset table 6

Figure note: The legend is presented in the same order as the bars.

Figure 4.2 shows a breakdown of the key components of overall input costs by farm type. A more disaggregated breakdown at the all farm level can be found in Dataset table 5.

Dairy Farms

On dairy farms, average Farm Business Income fell by 68% to £70,900 in 2023/24 (dataset table 5.7) following two exceptional years. This was primarily due to a substantial drop in output from milk and milk products. This fell by 12% as a result of lower farmgate prices (which began to fall in early 2023 as markets readjusted after the volatility of 2022) rather than a decrease in the overall volume of milk (Figure 4.3) or number of dairy animals (Table 4.1 and dataset table 6.5). It is important to note the wide variation in milk prices with some farmers receiving considerably more or less than the average. Crop output fell by 27% with lower wheat and barley output accounting for most of the decrease.

Variable and fixed costs rose by 3% and 11% respectively, most notably for general farming costs, livestock specific costs, electricity and casual labour. Figure 4.2 shows a breakdown of the key components of overall input costs. Overall, the net contribution of agricultural activities to Farm Business Income fell from the exceptionally high level of £182,100 in 2022/23 to £34,700 in 2023/24.

Average income from diversified activities fell by nearly a quarter to £10,400, the result of lower output from food process and retailing and rental income. For dairy farms, the average Basic Payment was £17,700 while agri-environment payments were £8,200, an increase of 14% compared to 2022/23 (Figure 4.1).

Figure 4.3: Milk availability in England and Wales, March 2022 to February 2024

Source: Defra monthly survey of milk utilisation by dairies in England and Wales

Table 4.1: Average herd size for dairy cows in England, 2017 to 2023

Source	2017	2018	2019	2020	2021	2022	2023
Cattle Tracing scheme (all holdings)	93	97	101	102	105	110	116
Cattle Tracing Scheme (holdings with >= 10 dairy cows)	151	156	160	[x]	166	172	178
Farm Business Survey (specialist dairy farms)	187	188	191	189	199	208	209

Sources: Cattle Tracing Scheme (CTS), Farm Business Survey England

Table notes:
1. Dairy cows are defined as female dairy cows over 2 years old with offspring from the CTS.
2. 2017 to 2021 Farm Business Survey data based on 2013 Standard Outputs.
3. 2022 and 2023 Farm Business Survey data are based on 2017 Standard Outputs.
4. The symbol ‘x’ denotes data not available; England data collection for 2020 was disrupted by Covid-19, therefore, it was not possible to produce 2020 CTS results by size group.

Comparing across performance bands (based on the ratio of outputs to inputs), the highest performing 25% of farms saw the average income on their agricultural activities more than halved in 2023/24 to £166,100. For the medium 50% of performers, the return on agriculture fell by 82% to £29,200 while the lowest performing 25% of farms saw an even bigger reversal; for these farms, a positive return on agriculture of £11,600 in 2022/23 moved to a loss of £92,300 in 2023/24 dataset table 7.6.

Considering Farm Business Income for the business as a whole, in 2022/23, 5% of dairy farms failed to make a profit, this increased to 23% of farms in 2023/24 (Figure 2.2). At the same time, the proportion of dairy farms with a Farm Business Income of over £100,000 more than halved compared to 2022/23 to 30% of farms in 2023/24.

Figure 4.4 shows production costs for milk in 2023/24. Based on enterprise data from the Farm Business Survey, the average price for milk sold from dairy enterprises (across all farm types with dairy enterprises, not just dairy type farms) was 39.2 pence per litre in 2023/24, a 15% decrease on 2022/23, whilst the average cost of production was 44.2 pence per litre. Note that the cost of production is on a full economic basis (see footnote to Figure 4.4) and is spread across all milk produced including any that is used on the farm.

Figure 4.4: Proportion of milk produced by cost of production (in pence per litre) in England, 2023/24

Figure notes:
1. The legend is presented in the same order as the bars.
2. 95% Confidence Intervals have been presented to show the range where the true value is likely to lie and provides an indication of the degree of uncertainty of the estimate.
3. Production costs shown here include all financial aspects of dairy enterprises such as any unpaid labour (including that of the farmer and spouse), herd depreciation and an estimated rental equivalent for land that is owned. An allowance is also made for non-milk revenue, most of which is from the sale of dairy calves, which is applied as a reduction to cost. This is to take into account the value of by-products from milk production. As a result, the production costs here represent the price that would have to be paid on all milk produced for dairy enterprises to break even.

Grazing livestock farms (lowland)

On lowland grazing livestock farms average Farm Business Income fell by 24% in 2023/24 to £17,300 (dataset table 5.10). Agricultural input costs fell by 5%; variable costs were 9% lower largely driven by falls for animal feed and fodder, while fixed costs decreased by 1%. However, these cost reductions were not enough to offset a drop in output from crops of 23% and sheep of 13%. As with arable farms, lower wheat output was the main factor influencing the fall in crop output. For sheep enterprises, while market prices for finished and store lambs remained strong (Figure 4.5), there was a decrease in both the revenue and closing valuation for sheep, reflecting fewer animals sold and lower stocking rates. Output from cattle enterprises which typically make up the largest proportion of livestock output on this type of farm fell by 2%.

As in 2022/23, lowland grazing livestock farms failed to make a positive return on their agricultural activities with the average loss increasing to £11,200. When the agricultural cost centre is analysed by performance bands (dataset table 7.8), low and medium performing businesses again failed to make a positive return from agriculture in 2023/24. For the lowest performing farms, losses increased marginally compared to 2022/23, although for medium performers they were slightly reduced. The top 25% of farms saw the return on their agricultural activities fall from £14,000 in 2022/23 to £3,100 in 2023/24.

With the third year of phased reductions, the average Basic Payment fell by a quarter compared to 2022/23 to £10,700 while agri-environment payments increased by 22% to £8,200.

Figure 4.5: Deadweight Standard Quality Quotation (SQQ) price in the United Kingdom, March 2022 to February 2024

Source: Agriculture and Horticulture Development Board

Figure note: The Deadweight SQQ is for lamb carcasses falling in the 12-21.5 kg weight bracket.

Grazing livestock farms (Less Favoured Area)

In 2023/24, the average Farm Business income on LFA grazing livestock farms fell by 12% to £23,500 (Figures 4.1) with higher fixed costs more than offsetting an increase in agricultural output. Fixed costs rose by 9%, most notably for general farming costs and net interest payments which increased by 29% and 67% respectively (dataset table 5.15). Agricultural output also rose, but to a lesser degree than costs. Output from sheep enterprises was 3% higher, supported by firm prices (Figure 4.5), while cattle output was virtually unchanged compared to 2022/23. Combined these were more than enough to offset a drop in crop output of 4%.

Comparing across performance bands, the low and medium performing groups of farms both experienced increased losses compared to 2022/23 (dataset table 7.10), although the top 25% of farms saw the return on their agricultural activities increase from £3,100 in 2022/23 to £5,600 in 2023/24.

The average Basic Payment fell by 18% to £17,100 and agri-environment payments (often an important income stream for LFA farms) rose by 5% to £14,700. A more substantial increase was seen in the return on diversified activities which rose by 75% (£2,400), largely driven by income from building rental and recreation activities.

Specialist pig farms

The Farm Business Survey 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.

Average Farm Business Income for specialist pig farms rose by 87% in 2023/24 to £135,800 (dataset table 5.16), primarily due to a substantial rise in output from pig enterprises (dataset table 5.17) which more than offset higher input costs. Pig output increased by 25% reflecting higher throughput and prices (Figure 4.6). In contrast to other farm types, for those pig farms growing crops, output rose with an increased average area of wheat and barley offsetting lower prices and yields. Agricultural variable costs were 8% higher with animal feed and other livestock costs contributing most to the increase (dataset table 5.17). Defra compound feed price statistics (Animal Feed Prices) suggest a decrease in pig feed costs, whilst for the Farm Business Survey population an increase in the average number of pigs is likely to have been a factor in the feed cost rises seen in the survey results. Fixed costs rose by a 21%, most notably for labour, general farming costs and electricity. Figure 4.2 shows a breakdown of the key components of overall input costs.

Figure 4.6: Deadweight Average Pig Price (APP) in Great Britain, March 2022 to February 2024

Source: Agriculture and Horticulture Development Board

Revenue from diversification rose 59% to £71,800, another factor contributing to the higher overall Farm Business Income. Food processing / retailing, other diversified activities and renewable energy were the main drivers. Average agri-environment payments also rose in 2023/24, more than doubling to £7,900.

Note that these changes should be treated with caution because of the small sample size and the wide confidence intervals. Contract rearers are also well represented in the FBS sample. Business models for contract rearing operations are varied and these types of farms may not be impacted by price variations to the same extent as non contract rearing farms

Specialist Poultry farms

The Farm Business Survey sample specialist poultry farms are relatively small, meaning that individual farms can have a large influence on the results, and the results should be treated with caution.

Compared to 2022/23, the average Farm Business Income for specialist poultry farms rose by nearly a quarter to £143,600 (dataset table 5.19). Despite a fall in output from broilers enterprises of 15% (slightly higher prices were more than offset by a fall in throughput), livestock output overall rose by 2%, driven by an increase in output from eggs of 33% which reflected both higher prices (Figure 4.7) and volume produced. Fixed costs were higher (notably land and property costs, depreciation of buildings and net interest payments) but this increase was almost entirely cancelled out by a fall in variable costs of 6%, meaning that total costs overall were unchanged compared to 2022/23.

Figure 4.7: Quarterly Egg Packing Station prices in the United Kingdom, 2022 and 2023

Source: Quarterly UK Egg Packing Station Survey

Whilst accounting for a relatively small proportion of Farm Business Income on this type of farm, agri-environment payments nearly doubled in 2023/24 to £7,200. Income from diversification fell by 19%, this reflected an increase in fixed costs related diversified activities and falls in output for some enterprises, notably renewable energy and other diversified activities (dataset table 5.20).

Note that these changes for specialist poultry farms should be treated with caution because of the small sample size and the range of enterprises covered by this farm type. For example, there are farms producing broilers, turkeys, ducks and geese and for laying flocks the systems cover organic and conventional free range enterprises as well as enriched cages.

Chapter 5: Diversification →