As part of the NFU’s bi-annual banking roundtable, nine banks, including NatWest, Barclays, HSBC, Oxbury and Bank of Scotland, heard a stark assessment of the pressures facing farm businesses, with the conflict in the Middle East rapidly driving up key production costs.
They also heard how continued uncertainty over the future of agri-environment schemes, coupled with the growing impact of climate change on food production, is placing further strain on the sector, as well as how Defra’s Farming & Food Partnership board could provide opportunities for growth.
Farming resilience under pressure
NFU Deputy President Paul Tompkins said: “British farmers are a resilient bunch, but that resilience is being put under more and more pressure. With direct payments all but gone, farm businesses are more exposed to economic shocks, while the risks of producing food continue to rise.
“We’ve heard from farmers and growers across the country that costs of production have rapidly increased, driven by the impact of conflict in the Middle East. At the same time, extreme weather and uncertainty around agri-environment schemes are also having a knock-on impact on business confidence.”
“With direct payments all but gone, farm businesses are more exposed to economic shocks, while the risks of producing food continue to rise.”
NFU Deputy President Paul Tompkins
Important to set out pressures to banks
Paul Tompkins went on to explain, “It was important to set out these pressures to the banks, so they understand the reality facing the industry that produces the nation’s food, as well as its energy and environmental goods.
“It was encouraging to see how receptive the banks were, and we look forward to working with them to strengthen resilience and restore profitability across the British agriculture industry.”
