Despite recent events such as the closing of SFI applications and the family farm tax looming large, NFU Director of Policy Andrew Clark assured banking representatives that the NFU is continuing to push forward a positive agenda that looks towards the future.
This has been exemplified only recently with the launch of the NFU Livestock Board鈥檚 vision for 2035, which comes hot on the heels of both the Crops and Horticulture and Potatoes Boards鈥� strategies for growth.
The NFU鈥檚 recently launched 鈥榖lueprints for growth鈥� also detail how the government can lay firm foundations for a sustainable and profitable future.
鈥淓ven though there is so much doubt about the future and a real dent in confidence the Boards are still looking ahead to how we can expand opportunities for British farmers and what are the conditions we need to make farming more profitable, productive and sustainable,鈥� Andrew explained.
Following new trade deals with India and the US announced this month, Andrew said there were considerable opportunities for the industry as we explore new export markets.
Confidence low but interest rates on the decline
NFU economics experts Sanjay Dhanda and James Thompson ran through the NFU鈥檚 latest farmer confidence survey results.
This year鈥檚 survey saw extra questions added around the government鈥檚 planned reforms to APR and BPR, with the results finding that 85% of member surveyed saying they think they鈥檒l be impacted.
The phasing out of direct payments, input costs and regulation and legislation topped the issues members said would impact their businesses in the next 12 months.
鈥�All we need now is for the politics to settle down so farmers can continue to do what they do best, producing climate-friendly food while supporting our economy and environment.鈥�
NFU Deputy President David Exwood
Looking at the current economic climate, current profitability was a negative factor for most borrowers (58%) with only 37% saying they felt the banks would be supportive of future borrowing 鈥� the lowest figure since the NFU began the survey 15 years ago.
Of those surveyed, 67% said interest rates had a negative impact on their ability to acquire lending. This may improve however, with the Bank of England having just cut interest rates from 4.5% to 4.25%, the lowest they鈥檝e been for the past two years.
Spending Review is key
Banking representatives reflected that they were seeing caution on what customers invest in and why, but emphasised that there are positives, especially among sectors less impacted by the changes to government schemes.
Spending on machinery is down, lenders noted, with more people putting buying decisions on hold or switching from buying new to second-hand.
鈥淚t鈥檚 all about building confidence now,鈥� said NFU Deputy President David Exwood. 鈥淭he Spending Review will be key. We are also working with Defra on what the next version of SFI will look like and the challenges there.
鈥淎ll we need now is for the politics to settle down so farmers can continue to do what they do best, producing climate-friendly food while supporting our economy and environment.鈥�
