Income fell on nearly all farm varieties in England final yr, as excessive climate hit yields and the federal government lower subsidies.
Farmers concern future hits to their business after a massively unpopular change to agricultural property reduction which suggests some farms can be saddled with a big, surprising tax invoice, and a shock, extreme lower to the EU-derived primary funds scheme that means a shortfall in money that they’d not predicted.
Last yr, common farm enterprise revenue was decrease for all farm varieties besides specialist pig farms and specialist poultry farms, figures from Defra (the Department for Environment, Food and Rural Affairs) present. Extreme climate together with floods hit farmers arduous, inflicting complete crops to be submerged. Experts mentioned these occasions had been being made extra probably by local weather breakdown.
Cereal farms fared the worst, with a drop in revenue of 73%. For common cropping farms, the typical revenue was 24% decrease. Dairy farm revenue plummeted by 68%, and on lowland-grazing livestock farms, common revenue fell by practically 1 / 4 to £17,300, pushed by decrease output from crop and sheep enterprises.
However, funds beneath the brand new post-Brexit nature-friendly farming schemes gave farmers a small enhance: internet revenue from agri-environmental actions elevated by a mean of 14% to £10,600.
Olly Harrison, who farms cereal close to Liverpool, mentioned subsequent yr’s numbers had been more likely to be even worse because the dangerous climate continued in 2024 and the federal government was reducing grants to farmers for know-how.
“That data is a year out of date, we’ve had the worst harvest ever just now for cereals: no sunlight in June, poor planting last autumn, the perfect storm, floods – [income] will go down next year,” he mentioned. “I bet food self-sufficiency has gone down after this last harvest – it’s got to be. I’ve been growing overwintered bird food and deliver for nature, and have the kit and technology to do no-till [farming]. If the government invested we could boost food security and nature.”
The UK is about 60% self-sufficient in meals and reliant on imports. Harrison is among the organisers of a mass protest anticipated to happen in Westminster subsequent week over adjustments introduced within the finances earlier this month.
Speaking in parliament on Tuesday, the Liberal Democrat surroundings spokesperson, Tim Farron, mentioned the federal government had “rashly cut the basic payment by 76%. That will hit livestock farmers, upland farmers, dairy farmers and destabilise the whole industry.”
Responding, the farming minister, Daniel Zeichner, mentioned the Labour authorities had given the “biggest boost to sustainable farming that the country has seen”. He mentioned it was “determined to tackle the extreme climate crisis we have globally” by altering the fee schemes.
New knowledge from the Agricultural Industries Confederation (AIC) reveals cuts to authorities funds have fallen much more sharply than anticipated. After the UK left the EU, ministers pledged to slowly part out the land area-based funds which the EU gave out beneath the widespread agricultural coverage. This was so as to permit farmers to transition to a brand new system of being paid for motion on nature – resembling planting hedgerows and taking care of the soil – with out an enormous monetary shock and doubtlessly going bust.
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However, in her first finances, the chancellor, Rachel Reeves, introduced a shock lower of 79% to those funds. Farmers had been anticipating a extra tapered lower: the AIC knowledge reveals a farmer receiving £2,500 final yr anticipated £1,750 this yr. Instead, they’re getting £600. At the highest finish of the size, a farmer receiving £62,000 final yr was anticipating £38,000 this yr and getting £7,200. For farmers on tight margins, this modification may wipe out earnings.
Martin Lines, the CEO of the Nature Friendly Farming Network, mentioned the system needed to change so farmers received a good value for his or her merchandise.
“Farmers need fairer prices for their produce and better treatment across supply chains, along with international trade deals that don’t undercut them by allowing imports from countries with lower welfare and environmental standards,” he mentioned. “Farmers also deserve to be properly recompensed for all the public goods their land provides – like flood defences and habitat restoration.
“Working with nature and investing in our landscapes is absolutely crucial. As we face extreme weather events and the havoc these are already wreaking on harvests, it should be clear by now that maintaining food security and protecting nature cannot be separated.”
Defra has been contacted for remark.
