A survey of agricultural accountants in the United Kingdom finds that subsidies accounted for nearly 97 percent of farm profits in 2006/07.

According to the survey by the Institute of Chartered Accountants, the average net profit for British farms was £46,300, while average subsidy receipts were £45,000.

The survey also asked accountants about the impact that the Single Payment Scheme - which does not require land to be used for agricultural purposes - was having on farmers. A quarter said it was having no impact at all, while another quarter said that about 20 percent of farmers were making substantial changes, mainly by reducing fixed costs and by expanding, either through renting or buying.

Meanwhile, nearly half of the respondents said that climate change was having an impact on farmers. Both positive effects, such as through the increased demand for bio-energy crops, and negative effects, such as the rising cost of insurance, have been observed.

The Institute of Chartered Accountants' Farming and Rural Business Group's Farm Profits Survey 2007 is available at: http://www.icaew.com/index.cfm?route=153468