Recent strain on hill farming
Without government subsidies, many hill farms would have a negative income.[8] The high cost of land and machinery keeps many hill farmers from expanding.[8] Hill farmers in some parts of England have reported a 75% decrease in income over the past decade.[8]
Hill farmer income is subject to large fluctuation above the influence of the farmers.[9] The harsh terrain and climate of hill farms are hard on the animals, causing them to be relatively very unproductive.[4] Because of this, hill farming can have economic strains on the farmers who generally have low income.[4] Wet weather, as often experienced in the uplands, create additional animal feed costs for farmers.[9]
Many hill farmers earn around ?12,600, with some earning as little as ?8,000. This is much below the annual ?19,820, a single working adult requires to live in a village in England.[9] In 2008, a farmer would receive a profit of ?1 for a single moorland lamb.[5] The average LFA farm in England only earns about 66% of their total revenue from farming.[3] 22% of this revenue comes from the Single Farm Payment, and 10% from specific agri-environment payments.[3] The 2% balance originated from non-farm activities, which are usually associated with contracting or tourism and recreation.[3]
Hill farmers in Peak District National Park (PDNP) constitute one of UK?s most deprived farming communities, with farms in the LFA making an average loss of ?16,000 per farm, generating an average headline Farm Business Income of ?10,800 (supplemented by various government subsidies), creating a net income average per farm of about ?6000.[7]
The Hill farming sector in South West England, like farming in the rest of the country, has experienced a decade of much change associated with economic pressures and uncertainties.[10] On average, the financial position of hill farms in South West England, like the rest of country, is precarious. The average South West English Hill farm system in unable to match labour and capital invest in the business.[10]
Many farmers rely on a Single Farm Payment as a source of income.[9] These payments are expected to arrive in November or December, but sometimes farmers do not receive the money until June.[9] Due to this farmers are often unable to pay their bills or fix their machinery.[9] Some farmers have to cut back on the feed given to their animals, leading to a decrease in meat production and therefore lower profit.[9] By 2012 the Single Payment Scheme (or SPS), will only take into consideration the area of the farm.[5] This will decrease the income in moorland farmers to only 70% of what it was 20 years ago.[5]
The income from calves and lambs has remained constant, while the costs of farm upkeep have risen sharply (including items such as feed, straw, fuel, or fertilizer).[5] Because hill farming is becoming increasingly less profitable an increasing number of farmers have switched from the traditional hearty but less profitable animals which graze the moors to mainstream more profitable animals.[5]
Opportunities for farmers to supplement their farm income by working in industries such as quarrying or mining are largely no longer available.[5] The financial burden has taken a toll on many hill farmers, causing them to exhibit signs of mental health issues.[9] Many hill farmers are forced to generate supplemental income outside their farms or to take out loans.[9] Because of these economic factors, there is little incentive for younger generations to continue on with the hill farming.[5]
