FIGURES released by Welsh Government highlight the hugely detrimental impact that low commodity prices have had across all key farming sectors in Wales, according to the NFU.

According to the figures based on the results of the Wales Farm Business Survey for 2015-16 (up to March 2016), average farm business income across ‘all farm types’ fell by £6,800 to £22,200 - a decline of around 23 per cent. This is the third consecutive year for farm incomes to fall.

For dairy farms, average farm business income fell by a massive 53 per cent, with lowland cattle and sheep farms falling by 40 per cent and Less Favoured Area cattle and sheep farms down by one per cent.

NFU Cymru president Stephen James said: “Unfortunately, these figures come as no surprise to farmers. The fall in farm gate prices - in particular for milk and lamb over the reporting period - has resulted in this dramatic fall in farm incomes and puts pressure not just on farming businesses but also on rural businesses and the rural economy that rely on farmers for much of their income.

“The impact on farming families is even more starkly highlighted by the net farm income figures for 2015-2016. Net farm income is the return to the farming family for their labour after costs such as rent, depreciation and interest payments, and this income fell by around 37 per cent to £11,000.

“The figures, derived from the Aberystwyth University Farm Business Survey team, highlight that Basic Payment Scheme (BPS) payments are as important as ever in helping to compensate farmers for market failure, to help manage price volatility and to reward high standards of farming.

“I commend Welsh Government for their excellent delivery of nearly 90 per cent BPS payments on the opening day of the payment window this December. However the remaining payments must be made without undue delay, including payments to our cross-border farmers. This support is crucial to help farmers through current difficulties.”

MP Mark Willimas has said it is unacceptable that farmers are not receiving a decent income for their produce.

Responding to figures which show that average Farm Business Incomes (FBI) decreased by more than 20 per cent in the last year, Mr Williiams said: “The crisis in the dairy industry is moving from bad to worse. The huge drop in income for dairy farmers, caused by falling milk prices, is hitting many farmers and their families very hard and forcing an increasing number out of business.

“It is unacceptable that farmers are not receiving a decent income for their produce, and yet have no recourse when they are not getting a fair price.

“It’s vital the Groceries Code Adjudicator is given more teeth and a wider role so that farmers are properly protected. Farmers are rightly concerned about what Brexit means for the future of agriculture in Wales. We need urgent action to safeguard the future of Welsh farmers.”