Income from contract farming fell 10 per cent last year, according to the annual survey of agricultural businesses by Duncan & Toplis.
However, the chartered accountants say in their survey the results could have been worse given the extended period of cold and wet weather.
The survey says that, coupled with an increase in most costs, the profits earned by contract farmers fell from £94 per acre (2012 harvest) to £69 per acre in 2013 – a drop of 26 per cent.
There was an increase in labour, depreciation and repairs costs but a small decrease in fuel costs. Rent and finance costs also increased – rent increases have been seen across the industry.