The National Farmers’ Union (NFU) has called for the spring budget to increase the ability of farm businesses to deal with volatility and build stability.
The union wrote to Chancellor of the Exchequer Jeremy Hunt, who will present his spring budget to parliament on Wednesday, March 6, 2024.
The letter asks HM Treasury to “unlock and incentivise green investment” in the agriculture industry, which will help the government meet the 2050 net zero target while addressing high production costs, impacts of flooding and long-term certainty for domestic food production.
NFU president Tom Bradshaw said: “In a time of much change it is vital that our country’s food producers have the business confidence to continue producing climate-friendly, nutritious food long-term.
“That is why we have written to the Chancellor ahead of the budget to outline the key policies needed to help UK farmers and growers through some pressing and ongoing challenges.
“With on farm input costs up 32% from 2019, more regular and severe weather events causing devastating flooding and crop losses, and with at least a 50% reduction in direct farm payment support due in 2024, our food producing businesses are facing a challenging economic backdrop.”
Food production
Bradshaw said top of the priority list should be food production, as farms are businesses there to produce food for the nation.
“Without profitability built into farm businesses to create some certainty ahead, it is very difficult for farmers and growers to invest in the future,” he said.
“But fundamentally this is exactly what they must do to if we are to secure food production to feed people both here and for growing markets overseas.
“As the UK’s largest manufacturing sector, worth more than £120 billion to the nation’s economy, the Chancellor has an opportunity to take actions that will boost business confidence in the UK’s food and farming industry.”
By enhancing capital allowances to incentivise green investment, ensuring the Environment Agency is properly funded to limit flooding and developing a future agricultural budget, Hunt will be able to ensure the UK farming industry is a “resilient and sustainable sector for years to come”, Bradshaw said.
