The average level of on-farm investment across all the main farming sectors in NI reduced during the 2016-2017 financial year, figures released by DAERA last week indicate.

Results from the annual Farm Business Survey show that the average net investment (excluding capital grants) on NI farms in 2016-2017 was £12,031. This represents a £10,455 decrease from the previous year and the lowest level of capital expenditure in 10 years.

Pig farms had the largest average net investment in 2016-2017 at £23,777 and lowland beef and sheep farms had the lowest expenditure at £3,261.

Arable farms experienced the largest drop in on-farm investments from £46,289 in 2015-2016 to £21,387 in 2016-2017. Dairy farmers invested £20,357 in 2016-2017, down from £31,588 the previous year, and cattle and sheep farmers in LFA areas spent £9,190 in capital investments, down from £12,382 in 2015-2016.

The authors of the annual report on farm incomes note that the level of capital expenditure on farms tends to increase during or immediately after years that farms experience an increase in cash income.

An increase in capital expenditure could therefore be expected during 2017-2018 as the results from the latest Farm Business Survey indicate that farm incomes across all sectors increased last year.

Average farm business income across all sectors increased by 54% in 2016-2017 to £21,928. Dairy incomes were up from £11,604 in 2015-2016 to £23,618, lowland cattle and sheep incomes were up by £6,169 to £16,578 and LFA cattle and sheep incomes were up by £4,234 to £21,352.

The biggest increase was seen in the pig sector, where average farm business income rose by £42,618 to £58,673 in 2016-2017. However, arable farms experienced only a marginal increase in income to £16,492, up by £960 on 2015-2016 levels.

The data is based on information from a sample of 360 NI farms that have over 0.5 standard labour unit requirements (SLR).