Horticulture business profitability fell by seven per cent to an average £31,500 per business in 2014-15.
Despite this, certain sectors bucked this trend with income improving for specialist glass and nursery stock growers, according to Rural Business Research (RBR), the consortium of universities behind the Farm Business Survey.
The survey found that overall output fell by three per cent but this was slightly offset by a similar fall in variable costs (four per cent) and by fixed costs remaining largely unchanged. Whilst the value of output dropped for vegetable growers, output from fruit and non-edible growers actually increased.
The RBR publishes findings from a sample that covers 5.6 per cent of English horticulture businesses every year.
Other results included:
Specialist glass businesses: soft fruit and salad crops
- 55 per cent increase in farm business income to £24,931 per business in 2014-15
- Notable decreases in variable costs
- Seed and young plants down 15 per cent per business
- Fertiliser costs down 25 per cent
- Glasshouse fuel costs almost halved (47 per cent decrease)
- Increases in casual labour and contract hire costs
Fruit growers
- 91 per cent increase in farm business income (FBI) for cider apple growers to an average £22,585
- Highest FBI per £100 output of all horticulture types in the survey (25 per cent of gross output)
- Average orchard fruit income increased by 14 per cent per business
- However, if you exclude cider apple growers from this sample, you get a different story, with average incomes dropping by four per cent per business
- Diversification continues to be an important source of income for fruit businesses, now accounting for 25 per cent of total output
- Most popular are on farm processing and customised pack house services
- Higher yields help to off-set lower prices but pushed up costs
- Variable costs up 24 per cent
- Fixed costs up 32 per cent per business
Vegetable growers
- 11 per cent fall in Farm Business Income to £31,626 per business
- 11 per cent drop in variable costs per business
- Five per cent increase in fixed costs, in particular labour and contract fees
- Overall labour costs increased by eight per cent
Established in 1936, the survey collects financial performance information from over 1,900 farms across England.
It is conducted by a group of researchers from the Universities of Cambridge, Newcastle-Upon-Tyne, Nottingham, Reading, Askham Bryan and Duchy College.
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