Defra has confirmed that the Total Income from Farming (TIFF) in the UK reached £8.4 billion, driven by higher commodity prices in the beef and dairy sectors.

While the surge in income is welcomed by British farmers, uncertainty remains amidst falling crop prices and tighter margins brought about by rising costs.

Beef and dairy price increases
Total livestock output for 2025 increased by £2.1 billion from 2024 to £22.2 billion in 2025, largely due to beef and milk price rises.

The value of beef rose by 22.8 per cent to £945 million, which was largely supported by a sustained demand and a 3.4 per cent reduction in home-killed beef production.

Milk value surged by £755 million because of high UK farmgate milk prices which drove higher production in the spring and summer of 2025.

This news is encouraging for livestock producers, demonstrating a strong consumer demand and favourable market conditions.

Increased revenue offers opportunities to strengthen cash reserves and offset the growing operational costs.

Fall in crop values

2025 saw the total crop output decrease by £0.4 billion from 2024 to £11.4 billion, prompted by falls in the value of barley, sugar beet and potatoes.

The value of barley decreased by 16.8 per cent to £201 million due to lower prices, poor quality and a decrease in production.

Sugar beet value fell by £80 million because of poor planting conditions, pest problems and a 15.8 per cent decrease in the yearly pricing index.

In addition, the value of potatoes fell by £83 million because of a 31.2 per cent decrease in the annual price index even though there was an increase in planted area and production.

Unlike in the case of livestock, fall in crop values means that arable farmers faced reduced revenues and tighter profit margins, despite even increasing or maintaining output.

A greater uncertainty

The president of the National Farmers Union has warned that ‘huge volatility’ has returned to the sector which has left British agriculture under economic strain.

He recognised the importance of investment needed in the next decade to meet environmental regulations, deliver on animal welfare demands and make the UK food system more resilient.

This is in part driven by the conflict in Iran which has affected the profitability of British farmers, by spiking fuel costs and meaning fertiliser is more expensive and harder to source.

Follow-up

While total income is up, the picture is mixed and growth is not balanced in all parts of the farming sector.

If you are a livestock farmer enjoying the stronger market conditions, or an arable farmer feeling the squeeze of a drop in income, financial advice is more important than ever.

Please get in touch with our specialists to help your farm manage cash flow and build strategies for long-term resilience.