The total income from farming in Northern Ireland fell by almost 50% in the space of 12 months, a new report has revealed.

The Department of Agriculture, Environment and Rural Affairs (DAERA) said that reduced milk prices and high production costs were the main factors behind the 44% fall in income.

Other factors included the current price of feed, fertiliser and electricity which despite falling in recent months is still above historic averages.

Northern Ireland’s total income from farming dropped from £609m in 2022 to £341m by 2023.

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DAERA minister Andrew Muir said: “Fluctuating market conditions is not a new problem, but it remains a very difficult issue for farmers to address.”

He continued: “These fluctuations are mainly due to price influences across world markets which are very much outside our control.

“Consequently, my department focuses effort on helping farmers mitigate cost and price pressures by improving their productivity and resilience, while also addressing their environmental sustainability levels.

“These are the goals of our new farm support and development programme.”

The news comes after Chancellor of the Exchequer Rachel Reeves announed a 20% inheritance tax on farm assets worth more than £1m.

There will be no inheritance tax on combined business and agricultural assets worth less than £1m.

DAERA’s report also found that gross output of Northern Irish agriculture has fallen by 6.6% in 2023, down to £2.87bn.

Total income from farming in Northern Ireland is at it’s lowest level in recent years, falling below the former lowest record of £350m in 2019.

Cost of labour also rose from £84m in 2022 to £103m in 2023, with a total of 52,676 people working in the agriculture industry. Whilst cattle numbers are now down by 0.8% at 1.67m as of June 2023.