New Defra figures showing a £737 million drop in UK farming income will come as no surprise to anyone in the industry, an industry expert has said.

The annual decline took total farming income in 2012 to £4.7bn.

NFU chief economist Phil Bicknell pointed out it was the second wettest year on record in the UK "and no farming sector was immune from the weather".

Mr Bicknell believes, however, that the headline figure will cover huge variation between regions.

He also said the inclement weather will continue to have an impact on farming finances, as it has led to slow crop development and spring planting falling behind schedule in many areas.

Mr Bicknell seems to suggest there are extremely difficult farm management challenges still to come as the industry faces up to the hostile climate - both in a literal sense and a financial one.

He said: "For livestock producers, the immediate concern is a lack of fodder after a long winter, which follows on from higher feed bills in 2012. We may only be four months into the year, but the pointers are for UK farming profitability to be further squeezed in 2013."

NFU President Peter Kendall also painted a bleak picture and it appears landowners will have to put some savvy rural estate management plans into practice as part of their best efforts to ride the storm.

He said the decline in farming profitability "shatters the myth that high commodity prices would mean high profits".

Mr Kendall continued: "It is vital that farmers turn a profit and that they re-invest. The reality is that low profitability and falling confidence does not provide a secure framework for a sustainable food industry."

There has been a lot of talk lately about more efficient supply chains in agriculture and food but it is vital for those supply chains that they have "viable farming businesses as their foundation", he believes.

In addition he says the poor weather has exposed the importance of CAP payments to farmers who are facing squeezed profits.

"Managing risk and volatility are both key and that must be recognised by the government in its CAP negotiations and in pricing decisions taken by the food chain," he added.