Inflationary costs have hit the farming industry in spectacular fashion over the last three years. This, combined with a lack of certainty of future Welsh Government financial support for the delivery of food and environmental benefits, is making on-farm decision making extremely difficult.
Price volatility
Speaking ahead of this weekend’s Usk Show, NFU Cymru Monmouthshire County Chairman Emma Robinson outlined farmers’ concerns.
She said: “Price volatility has always been part of agriculture, a pressure we have handled and coped with. However, of late, price hikes are weighing heavy on farmers’ businesses and minds. Input costs today are nearly 40% higher than they were in 2020 and whilst output costs have increased, they have not kept pace with input costs, putting margins across all sectors under pressure.
“The call on the industry is huge as climate change continues to dominate the headlines. NFU Cymru has always contended that our Welsh countryside - already host to ancient woodlands, hedgerows, shelter belts and grasslands – is already making a significant contribution to carbon storage. Whilst we all accept there is more we can do, as set out in our ambition for 2040 net zero agriculture, we cannot have a situation where food production is compromised.”
Incoming government regulations
Inflation is causing huge concern in the farming sector. The pressure of incoming government regulations where maintenance and investment for farm infrastructure and equipment is needed, is crippling for farmers. Those working in the industry are bearing the scars of higher lending rates and the ability to source products and services within tight budgets is becoming increasingly challenging. There is little room to manoeuvre when basic operating costs are escalating and making investments for the future is, for some, a non-starter.
Emma Robinson concluded: “We wear many hats as farmers; we support many rural businesses and families. Whilst we have welcomed the stability that Welsh Government has provided through maintaining the Basic Payment Scheme for this year and next year, there continues to be no indication of payment rates for the new Sustainable Farming Scheme which is due to be introduced in just 18 months’ time. This ongoing uncertainty is making it even more difficult for our farmers to have the confidence to make important business decisions and plan ahead for the future.”
Farming helplines
If you or someone you know is struggling, there are always people to talk to, here are some helplines to call:
The DPJ Foundation 0800 5874262
RABI Cymru 0800 188 4444
Tir Dewi 0800 121 4722
Farming Community Network (FCN Cymru) 03000 111 999
Mind Cymru 0300 123 3393
Samaritans 116 123
YANA 0300 323 0400
and many more.