FARMERS in England face a massive drop in income, according to the Government’s own figures.

Lowland grazing units are forecast suffer a 48pc fall, dairy farmers 24pc and pig farmers down by two-thirds.

Sheep prices are currently cushioning those in less favoured areas but incomes are still expected to be down by a third.

Poultry farms could see a six per cent drop reducing the sector’s average income to less than half what it was in 2007/08.

The predictions are contained in Defra’s Farm Business Income forecast for 2010/11.

Cereal farmers are expected to enjoy a 73pc increase but it follows a 34pc drop in 2009/10 when, without Single Farm payments, many arable farmers would have suffered losses.

The dramatic fall in most incomes is partly due to huge hikes in animal feed prices coupled with low farm gate prices.

Peter Kendall, president of the National Farmers’ Union (NFU), said the figures were “bitterly disappointing.”

He said: “For many sectors, the indications are that the current returns from farming barely cover the costs of production, let alone provide the cash for re-investing in farming businesses. This is economically unsustainable.

“Farmers cannot carry on producing at little or no profit indefinitely.

Like any business they need to turn a profit – and soon.”

Phil Bicknell, NFU senior economic adviser, said arable incomes were the obvious bright spot but had to be considered in context.

He said: “A significant amount of grain will have been sold forward or under contract at prices nearer to last year’s lows in March of £92.50/t rather than the highs of £201/t in January 2011.”

A major consequence of higher cereal prices for agriculture was higher livestock feed costs.

Mr Bicknell said: “This situation has been further compounded by a severe lack of fodder crops from last summer and the extended winter feeding needed in 2010 due to bad weather and prolonged winter.”

Other input costs had also rocketed – from bank charges to fertiliser prices – while many farm gate prices had weakened.

He said: “Beef prices for much of 2010 were down on 2009 levels, and pig prices spent much of the year under pressure.

“The NFU has well-documented the situation in dairy where, despite rising global commodity prices, the price paid to farmers for their milk remains painfully slow to increase.”

If England’s farmers were to help feed the booming world population they need to make sufficient profit to invest in their businesses.