65% of farmers surveyed by the National Farmers’ Union (NFU) say the profitability of their businesses is declining, or that their business may not survive.
The union’s Farmer Confidence Survey revealed that the short and mid-term confidence of English and Welsh farmers is at its lowest since records began in 2010.
The NFU said “relentless wet weather” has played a big part in this loss of confidence, with 82% of respondents saying their farm businesses have suffered fairly negative (52%) or very negative impacts (30%).
Mixed farms, arable farms and dairy farms were shown to have taken the biggest hits.
The Farmer Confidence Survey was undertaken in November and December 2023, and the NFU said the results would be “even worse” had the survey been undertaken today due to the heavy rain experienced through January, February, March and much of April.
The union is calling for government to recognise the “extraordinary nature” of what has been the wettest 18 months since 1836, warning that many farms may be unable to survive.
NFU president Tom Bradshaw said: “These figures paint a really stark picture. Confidence has collapsed after months of devastating flooding, unsustainably high production costs and low market returns, and against a backdrop of reduced farm support as we transition to a new Domestic Agriculture Policy and associated farm support.
“Any business owner knows that without confidence and a steady cash flow, businesses will struggle to re-invest and remain viable.
“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.”
General election
In its General Election manifesto, the NFU has seeks to provide solutions that political parties can adopt which would work to reverse this breakdown in farmer confidence and help safeguard homegrown food production.
Its solutions include:
- Planning for and rewarding farmers fairly for their role in mitigating flood risk and committing to the proactive management of our watercourses;
- A smooth and seamless transition to new environmental schemes that are open to all farmers and growers, and ensure profitable long-term food-producing businesses;
- Establishing minimum standards to promote a fair and functioning supply chain;
- Developing and establishing core production standards that apply to agri-food imports.
Bradshaw said a lot is hanging in the balance ahead of the General Election and political parties will rightly be focusing on how to reverse the cost-of-living crisis.
Supporting homegrown food production must be part of this, he said.
“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 said.
“While we are seeing record lows in farmer confidence, I never cease to be amazed by our amazing farmers and growers; their passion, drive and ingenuity for the work we do. Innate tenacity means we do not give up easily.
“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.”
