Lack of confidence is hindering growth in British farming, survey shows

Farmer confidence is at its lowest level since the start of the pandemic, in part because of spiralling costs of production, a new survey has found.

The recent NFU poll found 88% of farmers said they were negatively impacted by input costs such as energy, fuel and fertiliser. Additionally, 82% said the phasing out of current farming support payments is harming their business confidence.

This lack of confidence is hitting the horticulture, livestock and poultry sectors particularly hard – and backs up issues seen on supermarkets with shortages of products such as eggs, fruits and vegetables.

Nonetheless, there has been a rapid increase in farmers’ intentions to invest in renewable energy generation and energy efficiency.

This demonstrates an ambition to future-proof farm business resilience and reach British farming’s net zero by 2040 target, as well as the importance of energy security to the nation’s food security, NFU said.

However, investment in increasing climate-friendly farming capabilities is being hindered by low levels of short- and medium-term business confidence, the survey reveals.

“It is shocking but not surprising that our farmer confidence survey is reporting the lowest levels in three years,” commented NFU president Minette Batters. “During this time, we have experienced a global pandemic, a war in Europe, tumultuous political change and extreme weather. If this lack of confidence and uncertainty is allowed to continue during such challenging times, it has the potential to lead to further shortages on supermarket shelves.”

She warned that experience shows low confidence suggests farmers lack the means to invest in their food producing businesses, which could result in “little to no growth” in Britain’s domestic food security – at a time when we need it most.

“It is also at odds with the government’s own plans for growth, and the commitments made by prime minister Rishi Sunak last year to support British farming by setting a target for the nation’s food security, with a statutory duty to report on domestic food levels.”

Energy security is also crucial for the nation and 38% of British farmers are currently using or producing renewable energy. The industry has ambition to increase this but confidence in the future is deterring farmers from investing, Ms Batters said.

“Farmers need to know that government is supporting them through policies that build profitability and resilience into farm businesses to allow us to unlock a thriving food and farming industry.”

She called for clarity on future farming support policies, including the Environmental Land Management schemes, to help farmers plan ahead and build financial resilience into their businesses.