On Thu, 02 Jan 2003 12:04:13 +0100, Torsten Brinch
wrote:

On Tue, 31 Dec 2002 10:17:34 +0000, Tim Lamb
wrote:

I am not an accountant but I understand that published figures for
profitability often include a *rent equivalent*. This is presumably to
make comparisons easier.

Yes, and those figures would be Net Farm Income figures, those we have
been speaking from -- IMO quite appropriately for the thread, since
that measure exactly allows us to look at UK farm profitability
aggregated across tenure types.

(Since this is being cross-posted to uk.business.agriculture, it
should perhaps have been stressed from the start, that 'Net Farm
Income' does not represent the income a farmer ends up with to meet
his living expenses -- the Net Farm Income measure is not meant for,
and should certainly not be used to compare the income of farmers
with the personal earnings in other sectors of society.)

In case there are Saxons hiding in confusion, a few figures to
illustrate the commonly used measures for farm income. If the focus
is how much or little farmers earn for a living -- compared to other
people in society, we should be looking at Cash Income (CI).

UK farm profitability, all farm types,
nominal terms indexed, 100=avg(959697)

94 95 96 97 98 99 00 01
NFI 78 90 117 92 43 31 23 26
ONI 77 90 117 93 45 32 26 27
FFI 86 88 117 95 48 35 31 43
CI 79 87 107 105 82 71 66 63

Avg. farm incomes 2001, all types all sizes
NFI £9,886
ONI £10,926
FFI £18,928
CI £31,462

(NFI=Net Farm Income, ONI=Occupiers Net Income
FFI=Family Farm Income, CI=Cash Income)