Increases in the statutory minimum farm wage, set by the Agricultural Wages Board have dismayed the National Farmers’ Union (NFU).

The order, which comes into force on October 1, will see a 3.2 per cent increase for grade one workers in line with national minimum wage and a 4.5 per cent increase for grades two to six.

Bob Fiddaman, NFU employment spokesman, said: “We are disappointed, and believe that the final decision does not reflect the level of increases being granted in other areas of the economy or the economic situation of the sector.”

The new statutory minimum rates are £5.52 an hour for grade one, £6 for grade two, £6.60 for grade three, £7.08 for grade four, £7.50 for grade five and £8.10 for grade six. After two days of negotiations, the partners failed to reach an agreement and the final decision was the result of a vote by the independent members of the board.

The NFU has estimated the cost to British farming at £50 million.