Evaluating the cost of production for farmers

Recent data shows how agricultural outputs vary across the UK by geographic location, but input management can help to manage variable costs 

The Agriculture in the UK evidence pack brings together existing statistics on agriculture to
summarise the current state of the agricultural industry, here we take a look at some North East data.

The average farm size in the UK varies with the NE having the largest farm size.
They state:

“The proportion of farm size >100ha is greater in the North East than any other region, which may be due to the number of large estates in the North East. Large estates are also relevant to the high number of tenant farmers in this region. Northumberland, for example, has several large, ancestral estates and has the highest rate of tenanted land in the country. There are also large shooting estates in the Pennines, and the coastal arable belt tends to have larger farms.
Farm type is also a factor, as there is a high proportion of LFA farms, which tend to be larger because of the grazing area required. There are less dairy farms in the North East, which tend to be smaller in area.”

Agricultural outputs

Agricultural outputs have been summarised into five main groups ( also and its interesting to review the output from agricultural production and how it varies across England.

Livestock is the principal output in the North of England, along with crops they have the highest value. 

The Cost of production to farmers

The advice is that “better input management help to reduce variable costs” The document goes on to say that “Costs from crops and livestock inputs can be reduced by practices such as improving feed efficiency, selective breeding of animals and/or following a detailed crop nutrient management plan developed with a qualified advisor.”

We have such advisors and you can talk to us in confidence about your farm business.

If you want to discuss industry trends arsing from this data and how to build resilience in your farm business please contact Alan Falshaw 07425 186127 or email him at the address below.



Posted by Vickers & Barrass on November 18th, 2021

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About the author

Vickers & Barrass

Rural Chartered Surveyors offering professional land agency services in the North East.