Data on farm business incomes are provided by the annual Farm Business Survey. For non-corporate businesses, farm business income represents the financial return to all unpaid labour (farmers and spouses, non-principal partners and their spouses and family workers) and on all their capital invested in the farm business, including land and buildings. For corporate businesses, it represents the financial return on the shareholders' capital invested in the farm business.
Average farm business income for cereals and general cropping farms was estimated at £78,000 and £74,000 respectively in the East of England Government Office region in 2006-07 (i.e. for 2006 harvest), compared to £66,000 for all farm types in the same region. For England as a whole, average farm business income for cereals and general cropping farms was estimated at £56,000 and £66,000 respectively in 2006-07, compared to £38,000 for all farm types.
Comparisons of these figures with figures for previous years are set out in the following table.
£ per farm 2003-04 2004-05 2005-06 2006-07 East of England Government office region Cereals 80,923 47,806 48,864 78,019 General cropping 90,101 72,936 48,570 74,450 All farm types 67,141 51,439 51,240 66,105 England Cereals 53,131 35,256 32,905 56,277 General cropping 65,872 46,229 37,346 65,788 All farm types 38,590 30,205 30,915 37,839
In 2007-08 (2007 harvest), incomes on cereals and general cropping farms are expected to have increased quite markedly, particularly on cereal farms. At the England level, income on cereal farms is expected to have risen by 45 per cent. and on general cropping farms by 27 per cent. These increases are due primarily to higher output prices compared to those of the 2006 harvest.