The confidence of English and Welsh farmers is at an all-time
low, a new NFU survey has revealed.
The Farmer Confidence Survey shows that short and mid-term
confidence is at its lowest since records began in 2010. Because
of this lack of confidence, production intentions have also
plummeted with all farming sectors expecting to decrease
production over the next year.
The relentless wet weather has played a big part, with 82% of
respondents saying their farm businesses have suffered fairly
negative (52%) or very negative impacts (30%), 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 heavy rain through January,
February, March and much of April. Were the survey undertaken
again today, the results would be even worse.
Farm business profitability has also fallen with 65% of
respondents saying their profits are declining or their business
may not even survive.
The NFU 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.
In its General Election
Manifesto, the NFU has provided solutions that political
parties can adopt which would work to reverse this breakdown in
farmer confidence and help safeguard homegrown food production,
including:
- 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.
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.
“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.
“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.”
-ends-
Notes to editor:
- 797 NFU farmer and grower members were surveyed between 21
November 2023 and 5 January 2024.
- The UK has suffered from four further storms since the start
of 2024.
- Further statistics from the Farmer Confidence Survey:
- Key concerns respondents outlined for the year ahead
include:
- Phasing out of BPS – 86% expect it to have a negative effect
on their business.
- Input prices (e.g. fuel, fertiliser and energy) – 80% expect
it to have a negative effect on their business.
- Regulation and legislation – 80% expect it to have a negative
effect on their business.
- Factors influencing confidence to invest over the next
three years include:
- A government strategy to ensure domestic food isn't undercut
by imported food produced to a lower standard – 88% said this
would influence confidence to invest.
- An increase in output prices i.e. what you receive for your
produce – 86% said this would influence confidence to invest.
- Levels of input price inflation e.g. fuel, fertiliser costs –
77% said this would influence confidence to invest.
