Research and analysis

Farming evidence - key statistics (accessible version)

Published 16 September 2024

How is the UK agricultural industry structured and how is agricultural land used?

The UK agriculture industry is made up of 209,000 farm holdings, using 17 million hectares of land (70% of the UK land total in 2023).

The average UK farm size is 82 hectares. However, almost half of all farms are less than 20 hectares in size.

The Utilised Agricultural Area (UAA) includes arable and horticultural crops, uncropped arable land, land for outdoor pigs, temporary grassland, permanent grassland and common rough grazing. Total UAA has remained between 17 and 18 million hectares since 2000.

Total croppable area consists of cereals, oilseed, potatoes, other arable crops, horticultural crops, uncropped arable land and temporary grass. In 2023, the total croppable area was 6.1 million hectares, around 1/3 of the UAA.

In 2023, 133,000 hectares of UK agricultural land was used to produce bioenergy crops, an increase of around 43% since 2015. This accounted for 2.2% of arable area.

45,000 hectares of wheat and 2,600 hectares of sugar beet were used for biofuels, and 73,000 hectares of maize were used for anaerobic digestion.

Table 1: Agricultural land use in 2023

Land use	Area (thousand hectares)	Proportion of UAA
Permanent grassland	9,730	57%
Temporary grassland	1,260	7%
Common rough grazing	1,194	7%
Woodland	948	6%
Cereals	3,088	18%
Other arable crops	750	4%
Oilseeds	418	2%
Uncropped arable land	311	2%
Horticulture	145	1%
Potatoes	115	1%

Notes:

1. Permanent grassland is grassland that has not been sown in the last 5 years.

Table 2: Livestock numbers in 2023

Livestock	Number (millions)
Cattle	9.6
Sheep	31.8
Poultry	178.1
Pigs	4.7
Dairy herd	1.8

How many of each farm type are there in England and how much land do they use?

In England in 2023, grazing livestock in lowland areas had the greatest number of farms (30% of total), and cereal farms used the largest amount of farmed area (34% of total).

There were 102,400 farm holdings in 2023. The total farmed area was 9.0 million hectares. Of the total area farmed, 3% is organic and 97% is farmed conventionally.

Table 3: Number of farms per type in England in 2023

Farm type	Number of farms	Proportion of farms
Cereals	17,399	17%
General cropping	21,541	21%
Horticulture	3,757	4%
Specialist pigs	1,700	2%
Specialist poultry	2,327	2%
Dairy	5,136	5%
Grazing livestock (Less Favoured Area)	11,965	12%
Grazing livestock (lowland)	30,420	30%
Mixed	7,165	7%
Other/unclassified	995	1%

Table 4: Area of land used by farm type in England in 2023

Farm type	Area of land (thousand hectares)	Proportion of agricultural area
Cereals	3,032	34%
General cropping	1,527	17%
Horticulture	172	2%
Specialist pigs	78	1%
Specialist poultry	86	1%
Dairy	743	8%
Grazing livestock (Less Favoured Area)	1,239	14%
Grazing livestock (lowland)	1,285	14%
Mixed	830	9%
Other/unclassified	6	0.1%

Note:

1. ‘Proportion of agricultural area’ uses the total area on agricultural holdings. This is different to UAA which includes only utilised area.

In England, how many farms are owner occupied and how many are tenanted?

In England in 2023, the majority of farms (54%) are owner occupied, followed by 31% mixed tenure and 14% wholly tenanted. For the remaining 1%, tenancy was undeclared.

Table 5: Wholly tenanted farms in the regions of England in 2023

Region	Number of wholly tenanted farms	Proportion of farms in the region
North East	891	21%
North West	1,763	14%
Yorkshire and the Humber	1,777	15%
East Midlands	1,634	14%
West Midlands	1,734	13%
East of England	1,507	14%
South East (incl. London)	1,700	14%
South West	3,123	12%

21% of holdings (891) in the North East were wholly tenanted, accounting for 28% of the farmed area. In each of the other regions, 15% or less of holdings were wholly tenanted, accounting for less than 20% of land.

Wholly tenanted farms have a younger age profile: 18% had a farmer aged under 45 in 2016, compared to 6% of farms that were solely owned.

Farms of mixed tenure tend to be larger than farms that are wholly owned or wholly tenanted.

Types of Tenancies in England:

Full Agricultural Tenancies (FAT): tenancies agreed before Sept 1995, generally have lifetime security of tenure, and some have succession rights for close relatives. Can only be terminated in very specific circumstances which are set out in legislation.

Farm Business Tenancies (FBT): tenancies agreed after Sept 1995, more flexible than FATs as they can be of any length of term, from rolling annual tenancies or a fixed term. Rolling annual FBTs can be terminated by either party issuing a (no-fault) 12 month notice to quit.

FATs and FBTs: can be with and without BPS entitlements and can be bare land agreements or partial or fully equipped holdings (include buildings/a farmhouse and other assets)

Seasonal agreements: include licences for grazing and/or mowing - can also include BPS entitlements. There are also informal oral/handshake agreements.

Which products contribute most to the value of UK agricultural output?

62% of the value of the UK’s agricultural production comes from livestock (£19.2 billion in 2023). Crop outputs totalled £12.0 billion.

Dairy (£6.0 billion) and Beef (£3.9 billion) are the largest livestock outputs.

Cereals (£4.4 billion) and Vegetables/Flowers (£3.5 billion) are the two largest crop outputs. Together, these account for over half of the total value of crops.

Table 6: Value of UK crop and livestock products in 2023

Product	Value (£ billion)	Proportion of total output value
Dairy	£5.98	19%
Beef	£3.91	13%
Poultry	£3.54	11%
Pig meat	£1.84	6%
Mutton and lamb	£1.58	5%
Other livestock	£1.32	4%
Eggs	£1.00	3%
Cereals	£4.44	14%
Vegetables/flowers	£3.55	11%
Industrial crops	£1.11	4%
Fruit	£1.04	3%
Potatoes	£1.00	3%
Other crops	£0.85	3%

Notes:

1. ‘Other livestock’ includes the value of animals going into the breeding herd/flock.
2. ‘Other crops’ includes forage plants and other crop products, including seeds.
3. Table 6 shows only the main contributors to crops and livestock product value.

How much does agriculture contribute to the UK economy?

In 2023, agriculture contributed £13.7bn (0.56%) to the UK economy. Agriculture employed 462,100 people in 2023, making up 1.4% of the UK workforce.

The total UK GVA figure was £2.43 trillion in 2023, of which agriculture contributed 0.56% (£13.7bn). The amount that agriculture contributes to the UK economy has varied little over time.

Of the £13.7bn agriculture contributed to the UK economy in 2023:

• England contributed 73%
• Scotland contributed 17%
• Northern Ireland contributed 5%
• Wales contributed 5%

GVA breakdowns are preliminary and may be revised.

A total of 33.1 million people were employed in the UK in 2023, of which agriculture employed 1.4% (462,100).

Of the total agricultural workforce in the UK in 2023:

• 63% were employed in England
• 14% were employed in Scotland
• 11% were employed in Northern Ireland
• 11% were employed in Wales

Percentages for GVA and employment stated above may not add to 100 due to rounding.

How many people are employed within agriculture in the UK?

In the UK in 2023, agriculture employed almost half a million people. 65% of the agricultural workforce were mainly involved in business ownership or management.

462,100 people were employed in the agricultural sector in the UK in 2023:

• 292,400 people were employed in England
• 66,800 people were employed in Scotland
• 52,700 people were employed in Northern Ireland
• 50,200 people were employed in Wales

The size of the UK agricultural labour force has remained largely stable over the past decade ranging between 462 and 477 thousand people.

In 2023, 65% of those employed in the agricultural sector in the UK were either farmers, business partners, directors or the spouse. This was a total of 299,200 people.

There were 162,800 people employed who were regular employees, salaried managers or casual workers.

Agriculture typically has an ageing workforce. In 2023, over a third of all farm holders in England were over the age of 65 years. Just 5% of holders were aged less than 35 years.

88% of farm holders in England in 2023 were male and 12% female.

Figure 1: Age of the agricultural workforce in England in 2023

Age	Percentage
under 35	5%
35 to 44	10%
45 to 54	18%
55 to 64	32%
65 and over	35%

How is the economic output distributed across the number of farms in England?

In England in 2022, a small number of economically ‘very high output farms’ produced over half (62%) the agricultural output using just 35% of the total farmed land area.

There were a total of 95,365 farm businesses in 2022. The total estimated output was €17,968 million. The total farmed area was 9.1 million hectares.

Economic sizes of farms by standard output value:

• Very low - under €25k
• Low – €25k to €125k
• Medium - €125k – €250k
• High - €250k – €500k
• Very high - Over €500k

Table 7: Distribution of output across economic farm size in England in 2022

Farm size	Very low	Low	Medium	High	Very high
% total farm businesses	45%	27%	11%	9%	9%
Number of farm businesses	42,864	25,669	10,162	8,530	8,140
% of total output	2%	9%	10%	17%	62%
% total farmed area	8%	19%	17%	21%	35%

Note:

1. Excludes businesses classified as ‘specialist horse’.

Standard Output measures the total value of output of any one enterprise - per head for livestock and per hectare for crops. For crops this will be the main product (e.g. wheat, barley, peas) plus any by-product that is sold, for example straw. For livestock it will be the value of the main product (milk, eggs, lamb, pork) plus the value of any secondary product (calf, wool) minus the cost of replacement. Standard Outputs are measured in Euros. For consistency, this approach has been continued even though the UK has left the EU.

How does profit (Farm Business Income) vary across the different farm types in England?

Profit (Farm Business Income) varies across the different farm types. Over the period 2020/21 to 2022/23, Dairy farms were the most profitable, and Lowland Grazing Livestock farms the least profitable.

Figure 2: Average farm business income in England in 2020/21 to 2022/23 (£)

Farm type	Agriculture	Agri-environment	Diversification	Direct Payments	Total income
Cereals	£56,400	£8,500	£19,200	£39,200	£123,300
General Cropping	£50,700	£11,000	£27,200	£40,900	£129,800
Dairy	£97,600	£5,500	£7,200	£23,300	£133,600
Grazing Livestock (Lowland)	£-6,300	£6,400	£7,500	£15,800	£23,500
Grazing Livestock (LFA)	£-4,300	£12,900	£3,300	£25,000	£36,900
Specialist Pigs	£-11,100	£4,300	£44,000	£20,000	£57,200
Specialist Poultry	£55,700	£2,500	£36,300	£10,000	£104,500
Mixed	£11,800	£7,800	£14,600	£30,900	£65,000
Horticulture	£67,500	£1,300	£32,400	£3,200	£104,400
All Types	£32,100	£7,900	£15,500	£26,800	£82,300

Notes:

1. Sum of totals may not match due to rounding.

Table 8: Average farm business income and the proportion which direct payments accounted for in England in 2021/22 to 2022/23 (£)

Farm type	Farm Business	% Direct Payments
Cereals	£123,300	32%
General Cropping	£129,800	32%
Dairy	£133,600	17%
Grazing Livestock (Lowland)	£23,500	67%
Grazing Livestock (Less Favoured Area)	£36,900	68%
Specialist Pigs	£57,200	35%
Specialist Poultry	£104,500	10%
Mixed	£65,000	48%
Horticulture	£104,400	3%
All Types	£82,300	33%

Lowland Grazing Livestock, Less Favoured Area (LFA) Grazing Livestock and Pig farms made a loss from the agriculture side of the business, as their costs of production outweighed the value of their output.

For Dairy farms, around three quarters (73%) of their Farm Business Income came from the agricultural side of the business.

For LFA Grazing Livestock farms, around two thirds (68%) of their Farm Business Income came from direct payments.

How does economic performance vary between the highest and lowest performing farms in England?

Between the years 2020/21 to 2022/23, across all farm types in England, the average performance of the top 25% of farms was 2 times better than the bottom 25%. The largest range was on Horticulture farms, and the smallest was on Poultry farms.

Figure 3: Ratio of the average output costs and average input costs for whole farm business for the top 25% of farms, middle 50% (25%-75%) and bottom 25% of farms in England in 2020/21 to 2022/23

Text description of figure 3: Figure 3 is a chart showing the performance ratios of different farm types. Data points are shown for performances of the top 25%, middle 50% and bottom 25% of farms.

Note:

1. A ratio of 1 means the outputs are equal to the inputs.

For the top 25% of farms across each sector, Cereal farms had the best average performance, with outputs 65% higher than their inputs.

For the bottom 25% of farms across each sector, Horticulture farms had the lowest average performance, with outputs 43% lower than their inputs.

Farm Business Income (FBI) is calculated as the difference between Farm Business Outputs and Farm Business Inputs. It does not deduct the cost of unpaid labour. When calculating farm economic performance, unpaid labour is included as a cost. This allows a fairer comparison between farms with employees and those that use unpaid (often family) labour.

Table 9: Ratio of economic performance between the top and bottom 25% of farms

Farm type	Top 25% vs bottom 25%
Cereals	1.8
General Cropping	1.8
Dairy	1.6
Grazing Livestock (Lowland)	2.1
Grazing Livestock (LFA)	2.0
Specialist Pigs	1.7
Specialist Poultry	1.3
Mixed	1.6
Horticulture	2.5
All Types	2.0

What factors are contributing to some farmers in England continuing to farm while making a loss?

Income from agriculture can be volatile, as farm businesses are price-takers and the determinants of the prices they receive can be out of their control. Income from Direct Payments, agri-environment schemes and diversification tends to be more stable.

Figure 4: Average income from agriculture, diversification, Agri-environment and Direct Payments for all farms from 2005/06 to 2022/23 (current prices)

Notes:

1. Prior to 2009/10, the sample was based on Standard Gross Margins. Standard outputs were introduced in the 2009/10 survey year. From 2009/10, the data are based on the latest standard outputs available for each year.
2. Direct payments began to be phased out in 2021.

Text description of figure 4: Figure 4 is a line chart showing the average income for farm businesses. The categories include average income from agriculture, direct payments, agri-environment schemes and diversification.

Compared to income from Direct Payments, agri-environment schemes and diversification, income from agriculture is volatile from year to year. This volatility in agricultural income is found across all farm types.

Historically, fluctuations in Direct Payments were due to changes in the exchange rate. The sterling rates were set based on the exchange rate in September each year. Since the start of the transition, they have been set relative to the £ value in the pre-transition reference period.

Many of the determinants of the prices farmers receive are out of their control. Farmers plant crops and raise animals, but by the time their produce is available for market the actual price they receive may have fallen. Many agricultural products are perishable and cannot be stored on farm, so must be moved into the supply chain quickly, meaning farmers cannot wait for better prices. Weather patterns can also impact both domestic and global supply.

These factors mean that in some years farmers make profits and in others, losses.

What is productivity and how has UK agricultural productivity changed over time?

Productivity is a measure of the efficiency with which businesses turn inputs into outputs, indicating the economic competitiveness of a sector. Total factor productivity (TFP) in agriculture has increased by 60% since 1973, due to a 32% increase in outputs and a 17% decrease in inputs.

Productivity improves if the same use of inputs produces a larger volume of output, or if the same volume of output is achieved from a smaller volume of inputs. There are two main ways of measuring this:

Total Factor Productivity (TFP) is a measure of how well agriculture turns inputs into outputs and is calculated as the total volume of outputs/total volume of inputs.

Labour Productivity is a measure of average output per unit of labour and is calculated as the total output (by volume or value)/total volume of labour inputs.

Figure 5: Agricultural total factor productivity since 1973 (Index 1973=100)

Text description of figure 5: Figure 5 is a line chart showing total factor productivity since 1973. The categories include total factor productivity, all outputs, and all inputs and entrepreneurial labour.

From 1973 to 1985, growth in TFP was driven by increases in the volume of output (25% increase). Total input use increased by only 1%. Between the mid-80s and mid-90s there was little change in either the volume of inputs or outputs. From the mid-90s to mid-2000s, TFP growth was driven by reductions in input use rather than increases in outputs.

Despite annual variability, the long-term trend is still one of slow but overall improvement in TFP

How do farmers view productivity?

From an economic perspective, improving productivity in the agricultural sector increases the productive capacity of the economy, leading to economic growth and improved international competitiveness.

Farmers taking part in discussion groups understood ‘productivity’ to relate to profitability rather than its economic definition, and view productivity as part of their objectives for business growth and sustainability. The importance assigned to productivity depends on whether farmers’ motivations are closer to profit and business growth, or lifestyle and environmental stewardship.

How does UK agricultural productivity compare with international competitors?

International comparisons of Total Factor Productivity (TFP) show that the UK has seen smaller improvements than some competitors over the past 30 years, however due to limitations with aggregate calculations it is important to also consider comparisons on a sector level.

Figure 6: Growth in Total Factor Productivity (TFP) 1991 to 2021 (Index 1991 = 100)

Notes:

1. A simplified methodology is used to calculate globally comparable estimates of TFP growth. This means that the UK TFP growth shown in this chart differs to Defra’s published TFP statistics.

Text description for figure 6: Figure 6 is a line chart showing total factor productivity for different countries. The categories include United Kingdom, Ireland, the United States, New Zealand, France and the Netherlands.

While Direct Payments are likely to have held back productivity-enhancing incentives in the UK, other EU countries have seen greater agricultural productivity growth whilst also receiving this subsidy. There is potential for improvement in each of the ‘pillars’ of productivity: Ideas and Innovation, People and Information, Investment and Competition.

However, direct comparisons with other countries are not straightforward. While the UK agriculture sector appears to perform poorly when compared to other countries, care must be taken when interpreting these comparisons.

TFP growth rates do not account for the differences in absolute productivity; although the UK seems to have lower growth, it may be that productivity in the UK was already high and competitors are catching up. Variance in the standards of production in each country are also not accounted for in these comparisons.

Aggregate data does not allow for the different types of farms found in each country. For instance, the UK has a greater proportion of grazing livestock farms than the Netherlands, which tend to have lower average farm productivity. Therefore, a greater number of this farm type in any one country will result in overall productivity seeming lower.

What is the environmental challenge of agriculture in relation to greenhouse gas emissions?

Agriculture is responsible for 12% of the UK’s greenhouse gas (GHG) emissions (48 Mt CO₂e). Whilst agriculture has reduced GHG emissions by 12% since 1990, it now accounts for a larger proportion of the UK total as other sectors have decarbonised faster.

Figure 7: Proportion of UK Greenhouse Gas emissions (2022), million tonne CO₂ equivalent

Emission	Agriculture	Other sectors or sources	Total
Nitrous oxide	70%	30%	100%
Methane	49%	51%	100%
Carbon dioxide	2%	98%	100%

Carbon dioxide (CO₂) is a major greenhouse gas, but agriculture is only responsible for around 2% of UK CO₂ emissions. These are mainly through use of energy and fuel, which can be reduced by improving efficiency, and by generating energy from renewable sources on-farm.

Methane (CH₄) is a more potent greenhouse gas than CO₂, particularly over short timescales. Agriculture is responsible for half of the UK’s total emissions. Livestock enteric fermentation are responsible for 85% of methane emissions, or 100% if you include manure management. There has been an estimated fall of 15% of methane emissions from agriculture since 1990.

Nitrous oxide (N₂O) is the most potent greenhouse gas that agriculture emits, having a warming effect that is around 300 times stronger than CO₂. Agriculture emits 70% of the UK total. 46% of agricultural N₂O emissions are a result of nitrogen fertiliser application. There has been an estimated fall of 23% of nitrous oxide emissions from agriculture since 1990.

In 2021 , the cost of UK greenhouse gas emissions from agriculture was £12.3 billion.

Land managers can and do help mitigate climate change by increasing carbon storage through the creation of more forests and woodland, and to a lesser extent, through good management to restore the organic carbon content of soils to its natural maximum. These practices can also improve the nutrient and water holding capacity of soils, which provides agronomic benefits. There is also potential to reduce the contribution of degraded peatlands to GHG emissions through restoration activities.

What is the environmental challenge of agriculture in relation to ammonia emissions?

Agriculture was responsible for 87% of UK emissions of ammonia in 2022, mainly from livestock farming and fertiliser use.

Ammonia emissions affect human health, reduce air quality, can cause soil acidification, harm vegetation and contribute to air pollution. Ammonia emissions can combine with industrial and transport emissions, forming harmful fine particulates which cause smog in urban areas and impact public health. The cost of UK agriculturally produced ammonia to human health and the environment in 2022 was £2.19 billion.

The estimated fall in agricultural emissions of ammonia is 19% since 1990, due partly to declining cattle numbers, better manure and slurry management, and reduced mineral fertiliser use, although over the last 10 years, emissions have been stable or have risen negligibly.

Cattle are the largest source of ammonia (51% of agricultural emissions), but it is also associated with chicken and pig farms, and with slurry and fertiliser use. Poor storage of slurry and manure can lead to high levels of pollution, and many farmers have taken steps to improve this.

Farmers can also limit the use of nitrogen-rich fertilisers to economically efficient levels, storing and applying them safely and efficiently, as excess nitrogen can be converted to ammonia by microbial processes.

What is the environmental challenge of agriculture in relation to water quality?

Water quality can be adversely affected by farming through run-off of fertilisers, pesticides and slurry and through erosion of soil, which is washed off farmland.

Pollutants can enter groundwater, affecting drinking water supplies and taking decades to degrade. Some of the pollution affecting UK waters is a legacy of previous agricultural practices, which heavily focussed on increasing production.

Examples of agriculture’s impact on water quality:

• Fertiliser, pesticides, manures and slurry are added to the land
• Rain mobilises pollutants, which flow through soils
• Livestock can cause erosion and pollution directly into water. Compaction by livestock and machinery erode soils and speed up flow.

64% of all surface water bodies in the UK failed to achieve good or high ecological status in 2022. 40% of waterbodies in England are impacted by pollution from agriculture and rural areas. Increased nutrients and sediment in water increase the cost of water treatment, and negatively impact bathing water quality.

Soil and sediment: Soil and sediment enter water when rain and wind erode soil, leading to nutrient enrichment and siltation, which impact fish and invertebrates and cause ecological damage.

Nutrients from fertilisers: Nitrogen and phosphorus enter the water cycle via groundwater and run-off, causing harmful blooms of plant life that deoxygenate rivers and lakes.

Pesticides and ammonia: Pesticides and ammonia can be toxic to many aquatic plants & animals, killing fish and invertebrates.

Excess nitrogen, phosphorus, fine sediment and low oxygen cause damage to aquatic ecology. Farming accounts for 25% phosphate, 50% nitrate and 75% sediment loadings in the UK water environment. Improvements in nutrient management practices and slurry and manure storage can help to reduce water pollution.

Manure, slurry and fertiliser application can contribute to excess nitrogen and phosphorous entering surface waters and aquifers. Between 1990 and 2023, there has been a 45% and 75% reduction in the use of manufactured nitrogen and phosphate fertilisers respectively.