The meeting, which was hosted by Ray Brown at Bidlea Dairy, formed part of a three-day tour of the North West by Deputy Governor for Monetary Policy Clare Lombardelli. Clare was accompanied by Bank of England Agents for the North West Ken Clark and Lydia Reid. The Bank was keen to hear directly from farmers about the key factors affecting business confidence, production costs and food prices.
Opening the discussion, Clare outlined the Bank of England's current economic outlook, explaining that inflation is expected to rise during the remainder of 2026 before easing during 2027. Farmers then shared their experiences of operating in an increasingly uncertain and volatile environment.
Key themes included volatility, profitability, access to finance, policy impacts and the need for greater recognition of the role farmers play in producing food and supporting the rural economy.
A recurring theme throughout the meeting was the limited control farmers have over both the costs they face and the prices they receive. Members highlighted how global events can quickly increase the price of key inputs such as fuel and fertiliser, while the returns paid to producers often fail to keep pace.
Several attendees expressed frustration that supermarket prices have remained relatively high despite farmgate prices falling in some sectors. The balance of power within agricultural supply chains was another key discussion point.
Attendees stressed the need to encourage the next generation into farming but highlighted the significant barriers they often face when seeking finance.
Confidence is vital
Uncertainty was another dominant theme. Members explained that confidence is vital when making long-term investment decisions, yet many businesses are currently delaying major spending due to concerns over policy changes, regulatory pressures and market volatility.
Concerns were also raised about inheritance tax proposals and wider changes affecting family farming businesses, fertiliser prices and rising costs including employment costs, pension contributions and tax changes. The discussion highlighted varying experiences with lenders.
Animal health challenges were also discussed. The meeting concluded with discussion around regulatory change and the UK's evolving relationship with European standards.
Helen Wainwright, Cheshire County Adviser, said: “Cheshire farmers welcomed the opportunity to share their experiences directly with the Bank of England. The discussion highlighted the importance of the need to build confidence within the industry, supporting investment and ensuring that farming's vital role in food production and the rural economy is fully recognised.”
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