At current prices before adjusting for inflation, Total Income from Farming increased marginally in 2010 compared to 2009, by £3.7 million (0.1%) to £4.38 billion. This increase is the result of an increase in the value of agricultural output (5.3%) to £20.7 billion offset by an increase in inputs and other costs (3.3%) to £19.5 billion and a fall in payments through the Single Payment Scheme and other payments (-12%) to £3.2 billion. The fall in payments is largely due to a decline in the exchange rate at which payments through EU direct aid schemes are converted from Euros to sterling.
The increase in agricultural output (5.3%) was due to an increase in the value of both crop production (8.5%) to £7.6 billion and livestock production (3.8%) to £11.2 billion.
The increase in value of livestock production was mainly due to increases in the value of production of poultry (13%), where volume increased and prices remained strong, and of milk (6.4%), reflecting increases in both volume and prices.
Increases in the value of output have been offset by higher costs, particularly for animal feed (11%), which rose to £4.02 billion, and for energy costs (14%), which rose to £1.25 billion. The total value of intermediate consumption (the goods and services consumed or used as inputs in production) was estimated to increase to £13.4 billion (4.8%). Changes for other costs, such as consumption of fixed capital (0.3%), compensation of employees (0.3%), rent (-0.1%) and interest payments (-13%), were minor and had only little impact on Total Income from Farming.