The figures also show that the value of agricultural output produced in Wales in 2011 was approximately £1,393 million, an increase of 12% on 2010. This generated a 25% increase in Gross Value Added (GVA) from agriculture.
The rises are attributed to greater output and higher market prices as well as an increase in subsidy payments to farmers, largely due to the effect of the exchange rate on the value of the Single Payment Scheme (SPS) payments.
There is further good news for the farming industry, as the same statistics mean that individual farm incomes in Wales are forecast to rise by an average of16% in 2011-12.
All sectors of the agriculture industry are set to see a rise in income with dairy farm incomes estimated to rise by 12%; the incomes of lowland cattle and sheep farms expected to rise by 20% and an estimated 18% increase for LFA cattle and sheep farms. These three sectors account for 75% of farming activity in Wales.
Deputy Minister for Agriculture, Alun Davies said:
"This is excellent news for the farming industry and shows that we have a lot to be optimistic about for the forthcoming year. Strong market prices and increased production mean that farm incomes are set to rise for the first time in two years, which is very welcome. Wales is delivering excellent produce and it is very pleasing to see that farmers are being rewarded through increased prices and incomes.
"However, the increase is also due to a rise in the Single Payment, which represents on average between 80 and 90% of farm income. This highlights the importance of the CAP to farming in Wales and this is why I am committed to ensuring Wales gets the best possible deal out of CAP reform."