New farm income indicator

The Department of Agriculture and Rural Development (DARD) is advising that it is to use a new farm income indicator.

DARD carried out a consultation exercise at the end of 2006 and subsequently evaluated these responses. The result is that Farm Business Income will replace Net Farm Income as the main farm-level measure of income in statistical releases and publications.

The new indicator will come into use in January 2008, when farm income results for 2006/07 are published. A back series will also be created, so that the results can be understood in context.

Farm Business Income is the return to all unpaid labour (farmer, spouses and others with an entrepreneurial interest in the farm business) and to their capital invested in the farm business – including land and buildings.

The same measure will be introduced in England, Scotland and Wales and will be used for UK farm income statistics. It is closely aligned to the main EU measure of farm incomes Family Farm Income - allowing easier comparison between Northern Ireland and other Member States.

Net Farm Income was no longer considered suitable because of its underlying tenant farm approach, despite almost all farms in Northern Ireland being owner occupied. It also measured the return to farmers and spouses – a definition that excluded other family members with an entrepreneurial interest in the business.

Net Farm Income will continue to be published for an interim period, but as a secondary measure.

NOTES TO EDITORS:

All media enquiries to DARD Press Office, tel. 028 9052 4619. Out of office hours please contact the Duty Press Officer via pager number 076 9971 5440 and your call will be returned.