Farm business incomes in Wales dropped by 39% year-on-year to £30,700 per farm, with dairy enterprises seeing the most significant decline.
The figures are included in the Welsh government's Farm Income Data report for April 2023 to March 2024, released today (16 January 2025).
In 2023-2024, estimated dairy farm income dropped by 59% to £67,500 - drastically reducing from an all-time high in 2022-2023.
It also shows a decline in income for cattle and sheep in Less Favoured Areas (LFA) farms, falling by 9% in 2023-24 to £22,000.
Increases in costs were seen in the overall average of all farm types, which rose by an average of 4% in 2023-24 compared to 2022-23.
This was mostly attributed general farming costs which increased by an average of 20%, or £3,800, the report states.
The Farmers' Union of Wales (FUW) said the figures showed "the economic reality of attempting to maintain levels of profitability against a backdrop of increasing costs and red tape".
"Dairy farms have seen significant declines due to both an average increase of 10% in overall farm business costs coupled with reductions in income," said FUW deputy president, Dai Miles.
"Across the board, however, the proportion of farm businesses in Wales generating a negative income continues to increase to over 20%."
He added: "At the very least, this demonstrates the need for the future Sustainable Farming Scheme to offer an equal level of economic stability, currently provided through the BPS, the maintenance of which for 2025 has been welcomed by the industry.”
The farm incomes data used in the release are derived from the Welsh government's annual Farm Business Survey (FBS).
