Profits for UK farming rose substantially in 2025 according to the latest Defra figures. Total Income from Farming (TIFF) for the year is estimated at £8.42bn.
This is a 16% real terms increase on the 2024 figure; a rise of £1.17bn. It is only beaten by 2022 since the mid-1990’s. TIFF shows the return to all entrepreneurs for their management, labour and capital invested. In simplistic terms, it is the profit of ‘UK Agriculture Plc’. The past 20- years (in real terms) is shown on the chart below, plus our estimates for the current 2026 year and 2027. Also shown on the chart is the contribution of direct support (BPS plus agri-environment scheme payments). This has been in long-term decline as inflation has eroded its real terms value.
The good returns may be a surprise to some – given the poor harvest in 2025. But the downturn was mainly limited to the combinable crop sector (cereals output was down 10%, or £0.37bn in real terms). Low grain prices also keep animal feed costs down. Other parts of farming had a good year, with Defra noting particularly strong prices in the dairy and beef sectors. Total livestock output was up by £1.3bn. Costs were relatively unchanged in 2025 versus 2024. As the chart shows, there was an increase in support payments in 2025 – up £0.3bn or almost 10% in real terms. We have questioned this increase, but have got no clear answer for it.