Weathering the economic storm: Perceptions on future-proofing farm businesses

Led by journalist and television presenter Anita McNaught, the discussion has shed light on the impending need for change to the global food system and how food and farming are perceived in the public eye and government policy.

Handing over to Martin Lines, chair of the Nature Friendly Farming Network (NFFN), Ms McNaught posed the “64-million-dollar question” of how farming and food businesses can best navigate the current unstable transition period.

Mr Lines, who is also an arable farmer in Cambridge, said the key to becoming a sustainable and profitable enterprise in the future is putting nature back into the heart of the business.

However, while many farmers across the UK are already adapting their business models and becoming more resilient, there is still a lack of clarity around future policies and how the supply chain and public will support farmers, he remarked.

Mr Lines also raised concerns over the mounting pressures on the industry to increase production and food security, which has been crippling businesses unable to keep up with the highly volatile market. He pointed out that less than 20% of the country’s productive land feeds people, and more than 60% of grains produced in the UK feeds livestock.

“We need to rethink our food system and actually put nature back into the heart of it and balance our production,” he stressed.

However, realizing that goal while remaining a profitable business in today’s climate is not without its challenges. Mr Lines suggested stacking enterprises, looking at different opportunities, and not focusing on single commodity outputs that leave little value on farms and represent a greater risk to businesses.

Moreover, farmers that have transitioned into regenerative agriculture will be able to weather the storm better, Mr Lines explained, as they are spending far less on artificial inputs.

In addition, he emphasized the need for succession and encouraging younger generations to get involved in the industry. He said farming should be marketed as a high-tech industry with plenty of career opportunities and a strong sense of community to attract new entrants.

Lastly, Mr Lines called out the lack of leadership and government action to put the necessary practices in place to help farmers balance their production and make the system work.

Echoing his words, Phil Haughton, founder of award-winning organic retailer Better Food, said “big-hitting national campaigns” are needed to initiate change in the food and farming system.

Mr Haughton described current market conditions as “extractive” and “domineering”, highlighting the difficulties of farmers having to accommodate constantly changing demands affected by global events such as the pandemic or the Ukraine conflict.

He said the ability to change one’s business model in a short span of time is key to surviving in the farming industry today, and stressed a revolution is urgently needed.

“Either things are going to get a lot worse, or we’re going to have a revolution to push ourselves over the edge,” Mr Haughton concluded.

“Community is the only reason our business survived”

Jade Bashford, programme manager at Real Farming Trust and co-founder of Stroud Brewery, walked delegates through how community support has enabled her business to ride out the storm.

Launched in 2006 with start-up capital borrowed from friends and neighbours, Stroud Brewery now turns over £2 million and employs 75 staff members. The business is split 50-50 between manufacturing for wholesale and operating a bar, café and community venue.

Ms Bashford revisited some of the challenges her business grappled with during the pandemic, which include:

• Sales and recruitment
• Rent and inequality crisis
• Over 300% increase in energy costs
• Brexit shutting down export routes
• Living wage and input costs inflation
• National insurance rise
• Less disposable income
• Pub closures
• Increased competition
• Reduced drinking

The challenges were further compounded by the fact that the brewery, like other UK businesses, must operate in a broken system resulting in NHS delays, postal and rail strikes, and other difficulties, she added.

To keep the business afloat, Ms Bashford and her husband looked at spreadsheets searching for ways to save money and explored diversification opportunities such as hosting events at the brewery.

However, the real difference was made by community input, as it happened countless times in the past, she explained. In 2010, the business borrowed £100,000 through local loans to match an EU grant and be able to expand. Whereas, in 2018, the brewery raised £300,000 through a Community Bond administered by Triodos Bank.

To reduce losses during the pandemic, Ms Bashford and her husband launched a Crowdfunder campaign that raised £114,000 with 1,000 supporters, which was essential to the survival of the business.

She said that while they’re indebted to the local community, the brewery has always been held up by the social fabric which it also helped create.

“Responsible indebtedness is what does build community, taking risks to share that trust and then living up to it and being transparent about what’s happening in the business,” Ms Bashford concluded.

Community support is also what enables a horticulture organic farm just south of Bristol to remain operational following a substantial drop in sales. Kim Brooks, managing director of The Community Farm, believes community farming is the only way to make the current food production system viable in the future.

The project was started 12 years ago for community benefit and has created a space for people to get involved in a different food and farming system. The business operates a veg box shed four hours a week and runs community farmer days every Saturday to welcome people of all ages and backgrounds onto the land.

Ms Brooks said the majority of society today is disconnected from food and farming and doesn’t know how their food is produced or where it comes from. However, initiatives like veg box schemes represent an entry for a lot of those people to reconnect with food production, she explained.

She added that the more society can recognise that it is part of nature and the more the public can put farmers first, the sooner we can bring our broken food system back into balance.

Like other farm businesses, The Community Farm has also experienced a dramatic decline in sales due to the cost-of-living crisis. However, clear communication with locals through campaigning has made a big difference to the viability of the business, Ms Brooks remarked.

“We went out to our community with honesty and transparency and told them if you don’t support us, we’re not going to be here in 6 months’ time,” she said.

Due to the foundations that have been laid down over the years, reminding the community of exactly what they can do to help has resulted in an increase in sales and ensured the longevity of the business, Ms Brooks added.

“Asking for help is a strength and not a weakness”

To remind farmers of the pastoral and practical support available to them, Mark Thomas, head of services at the Farming Community Network (FCN), talked about the work being carried out at the charity to help those who are struggling.

According to Mr Thomas, FCN’s approach is proactive and preventative and is built on the concept of farmers helping farmers. All of the charity’s volunteers have a background in farming and receive ongoing training to be able to provide the best possible support.

Organised into 30 groups, FCN volunteers serve local communities across 35 counties in England and Wales

Mr Thomas explained people contact the charity’s helpline for a variety of reasons, such as financial and family difficulties, physical and mental health challenges, issues around succession and planning for the future, and problems dealing with animal diseases such as TB or avian influenza.

“An important emphasis of FCN is to try and go upstream of those problems occurring and to be proactive in local farming communities to help build resilience, reduce health inequalities and help people manage through change,” Mr Thomas said.

“We encourage people to be lookouts in their communities and watch for early signs that their neighbour and colleague might be struggling and to enable earlier intervention before the problems snowball.”

In addition, the charity works with colleges to help prepare young people as they embark on their careers in agriculture.

“Our industry is at the heart of some really important, critical societal issues; food security, renewable energy, biodiversity, climate change mitigation, leisure, well-being, and it offers fulfilling and exciting career opportunities. And I think it’s important to remind young people of that opportunity,” he added.

Mr Thomas believes that, although the next few years will see a progressive reduction in financial government support for farming businesses, the agricultural transition will also bring opportunities for many and FCN is here to help farmers adapt to change.

Rounding up his talk, Mr Thomas commented: “My message is that embrace the change, seize the opportunities, look after yourself and those around you, and remember that asking for help is a strength and not a weakness as we’re often led to believe.”

The FCN helpline 03000 111 999 can be contacted seven days a week between 7am and 11pm.

Continuing along the same lines, Carol Whaley, director of services at RABI, said there’s now more demand than support organisations can fulfill.

To support her claim, she shared the results of the Big Farming Survey launched in 2020 that inquired about the health and well-being of farmers and how they are coping with challenges. The survey had 15,000 respondents form England and Wales and the results were reviewed by the University of Exeter.

According to the survey, over a third of people in farming (36%) are possibly or probably depressed. Moreover, only 8% of women and 12% of men said they have good mental well-being, and 47% of all respondents are consistently struggling with anxiety.

These concerning results indicate that the general mental well-being in the farming population is worse than in the general UK population, Ms Whaley said.

To help offset the impact industry pressures are having on the mental health of farmers, RABI launched three new services in 2021/22:

• Professional in-person counselling – no GP referral needed
• Click & chat well-being and professional counselling platform – for those unwilling to accept face-to-face support
• Certified mental health first aid (MHFA) training – to help the community support itself

In summary, Ms Whaley emphasized the need to normalise the conversation about mental health and signposting those in need to organisations offering help.

Looking at the bigger picture

Concluding the session, Ms McNaught asked the panel to share their best solutions to the current situation.

Mr Lines from the NFFN called for better health education, saying young people need to reconnect to how we grow, prepare and cook food;

Ms Bashford said the government must put the solution in the hands of the people who are affected by it;

Ms Whaley said good mental health is correlated with positive business, and supporting physical and mental health in farming communities will drive us towards the resolution of the crisis;

Ms Brooks believes community-supported agriculture projects are part of the solution and making sure everyone can take part;

Mr Thomas stressed the need for a significant uplift in engagement and communication about what options people will have after BPS is phased out;

And finally, Mr Haughton suggested the industry needs to adapt and welcome the views of young people.