The National Farmer’s Union’s (NFU) farmer confidence survey of more than 900 member businesses has revealed historically low levels.
Confidence is measured on a scale of -100 to +100 in the survey, and overall short-term (one-year) confidence now stands at -35, while this time last year it stood at -25.
Mid-term (three-year) confidence on the same scale is currently -38, a decline of 16 points from last year’s result of -22.
Survey results
The results mark another decline in confidence for UK farmers, and point to a series of decisions affecting farmers.
85% of respondents believe that reforms to agricultural property relief (APR) and business property relief (BPR) will increase their inheritance tax liability.
88% of respondents believe the phasing out of direct payments would negatively impact their business.
Sector Short-term confidence Medium-term confidence Arable & livestock -44 -43 Arable -53 -53 Beef and/or sheep -36 -41 Dairy -21 -24 Horticulture and potatoes -6 -4
Poultry egg producers defied the negative trend with results of +21 short-term confidence and +15 medium-term confidence, while poultry meat producers had a confidence level of -3 confidence in both time periods.
The factors farmers believed would have the most negative impact on their farms were the phasing out of direct payments (88%), rising input prices (85%), and government regulation and legislation (84%).
Reactions to survey results
The former government received strong criticism for last year’s survey results. This year’s results have already come out lower, however the NFU believes that if the survey was taken again now it would be lower again.
This comes after Department for Environment, Food and Rural Affair’s (Defra) sudden announcement of the closure of SFI applications on Tuesday, March 11.
This announcement adds to the challenges farmers are already facing, including the family farm tax announced last October and the direct payments phaseout.
NFU president Tom Bradshaw said: ”When our confidence survey results came out last year, we thought we’d hit rock bottom. When we were initially looking to release our survey results today, we knew we’d hit a new all-time low.
”Now, with another hammer blow dealt to the farming sector without warning last night, I’m realising there is no such thing as rock bottom as far as Defra is concerned,” he added.
