Recent farm income forecasts published by the Wales government show how Welsh agriculture is exposed to market volatility and other non-farm factors.

Projected income data for farmers in Wales show that the average income of their farms will decrease by 15% compared to the previous year to 29,500 pounds.

Projected income from the dairy industry decreased by 23%, cattle and sheep farms in less favorable areas (LFA) - by 9%.

Wales' largest sector should suffer the most - sheep farms are expected to face a sharp drop of 29% with an average farm business income of just £ 17,000.

NFU Cymru President John Davis said: “These forecasts show how challenging the past year was for all of Wales’s farming sectors, when farmers struggled because of the long, wet winters of 2017–1818, and then last summer’s drought. The decrease in income is due, in particular, to pressure on farm prices, especially in the dairy sector, but mainly as a result of significant additional costs for raw materials - especially for feed, to help survive an extremely difficult year in bad weather conditions. ”

“These numbers once again show the volatility that affects all types of farms in Wales, and reinforces the need to include a component of volatility or stability along with public goods and productivity indicators in future agricultural policies in Wales,” said John Davis.