Farm incomes surged by 20 per cent last year - largely as a result of the fall in the value of Sterling - according to Government figures.
The collapse in the Pound following the referendum vote to leave the European Union boosted the value of Common Agriculture Policy Basic Payments, which are set in Euros.
The weakness of Sterling also resulted in firmer prices for a number of commodities, according to figures showing farm business income for the 2016-17 financial year. The figures have been released by the Defra.
Average income for the year was £38,000 - up 20 per cent on the £31,600 figure for 2015-16. The average Basic Payment in 2016-17 was £28,000 - a 19 per cent increase on the previous year.
Average farm business income increased across all farm types except for specialist poultry farms.
The biggest increase in income was on pig units, where farmers saw income more than double compared with the previous year. Average business income on specialist pig farms increased by 167 per cent from £21,600 in 2015-16 to £57,800 in 2016-17.
"Pig prices firmed in the second half of 2016 supported by tighter supplies and the weaker pound," said the report's authors.
"This had a positive impact on closing valuations. Despite this, pig enterprise output was lower, due to a reduced throughput."
However, they said: "The reduced output was more than offset by a substantial fall in both fixed and variable costs, particularly feed, and to a lesser extent labour."
'Highest level'
Income in the sector in 2016-17 was at its highest level since 2013-14, when average business income was £65,200.
Whilst pig farmers saw income surge, there was a slump in income on poultry units last year. Average farm business income on poultry farms was slashed by 49 per cent year-on-year from £106,700 to £54,000.
The authors of the report said the main reason for the fall in the poultry sector was reduced throughput of birds for poultry meat compared with the previous year.
"Both variable and fixed costs fell, reflecting the lower numbers, particularly feed, other livestock costs, machinery and labour."
The authors said: "Enterprise output from eggs increased by around nine per cent, driven by a 20 per cent increase in production and a small increase in price.
"This is in contrast to the trends seen in UK statistics that show a fall in egg prices over the same period and a three per cent increase in production."
Dairy income
Income on dairy farms was up by 14 per cent, according to the report, despite the squeeze on milk prices.
The crisis in the dairy sector has been widely reported, with farmers leaving the industry and demonstrations staged to raise awareness of the problem.
The average income statistics show that milk prices and production fell by five per cent and seven per cent respectively in the last year.
However, the authors said: "The fall in output from milk was partially offset by a substantial increase in enterprise output from other cattle driven by an increase in the closing value of cattle as prices firmed towards the end of the year.
"Agricultural costs (both fixed and variable) were also lower, particularly purchased feed and fodder, which accounts for around half of the variable costs on these farms, and fertiliser.
"Of the fixed costs, reductions were greatest for labour, machinery depreciation and rent. The average income from the agriculture cost centre was slightly higher than the previous year.
"Output from diversification also increased, largely driven by an increase in food processing and retailing, whilst the average Basic Payment for dairy farms was 21 per cent higher than the previous year."
Cereal farms
Average business income for the year was £50,000 compared with £43,900 the year before. Cereal farms saw income increase by 22 per cent to £43,100.
The report said income was boosted by a reduction in costs, particularly crop variable costs, which were 11 per cent lower than the previous year.
Total crop output fell by seven per cent as a result of lower yields but this was partially offset by higher prices as a result of the weaker Pound. Basic Payments for cereal farms were 14 per cent higher than the previous year.
Mixed farms benefited significantly from the exchange rate boosting Basic Payments. Payments were some 30 per cent higher, helping to deliver a 56 per cent increase in average business income from £18,400 in 2015-16 to £28,800 in 2016-17.
Mixed farms produced higher crop and livestock output, as well as increased output for diversified activities, according to the report. Renewable energy and food processing and retailing saw the largest increases.
General cropping
Average incomes on general cropping farms were 12 per cent higher in 2016-17 - up from £62,600 to £70,100.
Average farm business output was down two per cent but a small fall in crop output, combined with lower output from both diversified and agri-environment activities, was largely offset by a 13 per cent increase in Basic Payments.
Income was up by 33 per cent on lowland grazing livestock farms, although from a low base. Average farm business income in 2015-16 was £12,000.
Last year it was £16,100. An increase in the closing valuation for cattle almost entirely accounted for a 17 per cent increase in output for beef enterprises.
Output from sheep enterprises was similar to the previous year.
Less favoured areas
Average income on grazing livestock farms in less favoured areas increased by 42 per cent from £19,000 to £27,000.
Farm business output was 16 per cent higher due to increased output from both agriculture and agri-environment activities. Basic Payments increased by 29 per cent.
Income on horticultural units increased by 29 per cent from £34,400 to £43,800. This was largely driven by higher output for flowers, bulbs and nursery stock and, to a lesser extent, for fruit.
The authors of the report said that the average values in the statistics masked considerable variations in incomes from farm to farm.
More than a fifth of cereal, dairy, lowland grazing livestock, mixed and poultry farms failed to make a profit in 2016-17, they said, whilst a quarter of dairy and poultry farms and 30 per cent of general cropping farms had an income of more than £75,000.
