Farmers’ business confidence sinks to ‘lowest level since before the pandemic’

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Zoe Leach is the East regional director for the National Farmers' Union <i>(Image: Charlotte Bond)</i>

Zoe Leach is the East regional director for the National Farmers’ Union (Image: Charlotte Bond)

Financial pressures and political upheaval have driven farmers’ confidence down to its lowest level since the start of the Covid pandemic, according to an industry survey.

The National Farmers’ Union (NFU) said its survey reflects the spiralling cost of agricultural production, with 88pc of farmers saying they are being negatively affected by high input costs such as energy, fuel and fertiliser.

Also, 82pc of farmers said the phasing out of EU subsidies, which are being replaced with a new system of environmental payments after Brexit is hitting their business confidence.

The NFU says the horticulture, livestock and poultry sectors have seen the greatest impacts.

In East Anglia, farming leaders said this lack of confidence is restricting business investments, which could damage the nation’s food security at a time when we have already seen recent supermarket shortages of produce including eggs, tomatoes, cucumbers and peppers.

NFU East regional director Zoe Leach said: “It’s unfortunately not surprising that farmers across the region are so low in confidence.

“Over the past few years we’ve seen a global pandemic, a war in Europe, tumultuous political change and extreme weather.

“We know that low confidence indicates that farmers don’t have the means to invest in their food producing businesses. This could result in little to no growth in our domestic food security at a time when we need it most. It is also at odds with the government’s own plans for growth.

“As well as food security, energy security is crucial. Currently 38pc of British farmers are using or producing renewable energy. As an industry we have a huge ambition to increase this but confidence in the future is deterring farmers from making this important investment.

“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.”

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