The NFU has welcomed the Chancellor's announcement in the Budget allowing farmers and growers to average their incomes over five years instead of the current two years which will go some way to allowing them to manage market volatility and focus more on investment and growth.

“We are very pleased that Mr Osborne said that he had listened to the arguments by the NFU and will allow farmers to average their incomes over five years. As he mentioned in his speech, farmers are increasingly facing a volatile marketplace and this will enable them to manage the impacts of this,” said NFU President Meurig Raymond.

“News that the annual investment allowance will be addressed in his Autumn Statement is also welcome. As he mentions, £25,000 is not an acceptable level which would encourage on-farm investment and we will await further announcements with interest"

The news has also been welcomed by the AEA which comes against the background of disappointing tractor sales which were 27.9% down in February compared with the same period last year. AEA ceo Ruth Bailey says, "We support the NFU in welcoming this announcement which will help farmers plan future investment in plant and machinery."