The annual figures, compiled by Aberystwyth University, split livestock farms into four categories based on the geography of their land.
Mountain-grazed sheep belong to the severely disadvantaged designation but it is this group that has seen the greatest rise in profits from 2007 among livestock farms.
High-level farms in this category now bring in on average £24,100, whereas two years ago they were among the lowest performing farms, with just £17,500 per year.
Farmers in lowland areas who are traditionally more successful saw the smallest increase in their profits but are quick to point out the 2007 foot-and-mouth scare meant their predominantly European customers stopped buying their lamb.
Dairy farms, which account for 30% of all Welsh farms, have seen profits treble since 2004. According to Mr Davies this is due to shortages of milk elsewhere in Europe.
at Monday, March 02, 2009, Farmers Reap Bigger Rewards From Stronger Euro, Feb 2009
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