FARM BUSINESS INCOME FORECASTS FOR 2025-26

This week the Government published the Farm Business Income (FBI) forecasts for the period from March 2025 to February 2026.  These are estimated figures but particularly show the impact of the weather on the cereal sector, with FBI falling by two thirds compared to 2024-25 to just £17,000.   At £37,000, FBI for Less Favoured Area livestock farms is forecast to be 8% lower than 2024/25 with reduced income from the Basic Payment Scheme and agri-environment payments more than offsetting an increase in livestock prices.  However, high beef and sheep prices did result in an increase to lowland livestock FBI by 9% to £45,000.  Although milk prices have fallen, increased production is expected to increase the FBI for the dairy sector to £224,000.  These are forecast figures but is a very interesting snapshot of how different sectors have performed over the past year.  You can read the full briefing here.