A survey by the NFU suggests that the short and mid-term business confidence of English and Welsh farmers is at its lowest level since records began in 2010 as they battle extreme weather and the post-Brexit phasing-out of EU subsidies.
82% of respondents stated that their farm businesses have suffered fairly negative (52%) or very negative impacts (30%) from the wet winter, with mixed farms, arable farms, and dairy farms having taken the biggest hits. The survey was undertaken in November and December 2023. Since then, farmers have been battling relentless rain for the last four months. The NFU noted that were the survey undertaken again today, the results would be even worse.
With crop yields expected to be well down on previous year, 65% of respondents said their profits were declining, with concerns that many businesses will not survive.
The NFU highlighted that farmers were also facing unsustainably high production costs and low market returns, against a backdrop of reduced support as the sector transitions to a new Domestic Agriculture Policy.
Prime Minister Rishi Sunak has pledged to maintain the proportion of homegrown food consumed in the UK at its current level of 60% as part of an effort to win over rural communities ahead of a general election later this year.
The NFU is calling on all political parties to back measures that could help reverse the breakdown in farmer confidence and safeguard homegrown food production.
“Any business owner knows that without confidence and a steady cash flow, businesses will struggle to re-invest and remain viable,” said NFU President Tom Bradshaw.
“We have already lost more than 7,000 agricultural businesses since 2019 – no one wants to see that increase, least of all our customers who really value the high quality, sustainable food British farmers produce. With climate change wreaking havoc on food systems across the world and geo-political tensions high, Britain cannot afford to lose its ability to feed itself.
“A lot is hanging in the balance ahead of the General Election. Political parties will rightly be focusing on how to reverse the cost-of-living crisis, and with food inflation still high and families struggling with food bills, supporting homegrown food production must be part of this.
“The good news is that there are solutions the current and future governments can adopt to help rebuild farm business confidence, from investment in our water management to developing core production standards for food imports.”
He concluded: “In the run up to this election, I urge all political parties to recognise this resilience and the crucial role we play in sustaining our nation. With their support we can do more to contribute towards our national interests – producing more sustainable, affordable food and renewable energy, driving economic growth, providing jobs, and delivering our national environmental ambitions.”
NAM Implications:
- Britain cannot afford to lose its ability to feed itself.
- Britain cannot afford to lose its ability to feed itself.
- Britain cannot afford to lose its ability to feed itself.
