Poverty hit hill farmers forced to take drastic action

Poverty-stricken hill farmers are missing meals and going without food themselves so they can afford to feed their livestock.

A toxic combination of low incomes and rising input costs is forcing hill farmers to take drastic action to maintain their livelihoods, reveals an Oxfam study, which examined the experience of 20 individual farmers in Teesdale, County Durham.

Better known for its charity work overseas, Oxfam funded the Challenges Facing Farmers study to increase understanding of the hardships faced by families struggling to make a living in the English uplands.

Despite a rare recovery in sheep and beef prices, the report paints a bleak picture due to changes in support payments and rising feed, fertiliser and fuel costs. The recession has made it harder for producers to supplement already meagre returns with off-farm income, it says.

“We had a farmer with no food so we clubbed together and put some money in the kitty for more than one food parcel for him,” said Diane Spark, project manager for the Upper Teesdale Agriculture Support Service (UTASS) charity, which co-produced the study.

Farmers were being failed by the very system that was meant to help them, suggested Ms Spark. “We had a phone call from social services who had Googled and found us. They weren’t immediately able to do something. He [the farmer] didn’t have enough food for tomorrow.”

Circumstances beyond their control meant farmers’ incomes often fluctuated wildly, the study found. For many upland producers, their pattern of income relied heavily on two payments – their annual single farm payment and livestock sales at the back end of the season.

Despite anticipating their single farm payment would arrive in December, some farmers reported it failed to arrive until the following June. The cashflow difficulties this caused were then exacerbated by uncertain livestock prices.

Poverty line

“These income circumstances led to situations where farmers couldn’t afford to pay bills or mend broken equipment, had to forgo basics – such as food – and slash their input costs, sometimes by reducing the amount or quality of feed given to livestock,” the report warns.

“We had a farmer with no food so we clubbed together and put some money in the kitty for more than one food parcel for him.”
Diane Spark, UTASS

Farmers frequently found themselves living way below the poverty line. A single working-age adult living in a village needs to earn at least £19,820, according to official figures. But upland farmers in Teesdale had an income of £12,600 – with some earning as little as £8,000 a year.

Those farmers finding themselves in poverty exhibited a number of characteristics. They were often operating without adequate insurance, unable to pay into a pension, had little or no savings and depended upon off-farm income to balance the farm budget.

Farmers undertook a range of strategies to try and lessen the financial pressures they were under. As well as extending overdrafts and taking on extra loans, this included juggling which bills to pay and asking family members to help out on the farm.

“What is clear from this project is that farmers want to earn a living from the livestock they raise and are proud individuals who do not want to rely on handouts,” said report co-author Jessica Sellick, of economic regeneration experts Rose Regeneration.

The report also uncovered anxiety among farmers about their long-term future. Changes in agricultural policy have made it difficult for producers to strike a balance between environmental management and food production, it says.

Upland livelihoods are increasingly under threat, added Dr Sellick. “For many farmers, the present structure of the industry means they do not feel able to invest in their farms or livelihoods, with many having to make ends meet just to get by.”

Tenant farmers in particular felt vulnerable to decisions outside their control – especially those made by their landlord or bank. In exceptional cases, some were exhibiting mental health and personal well-being issues.

Resolving money problems by accessing free and confidential advice from the local Citizens Advice Bureau was also seen as important. So, too was receiving advice and small grants from farm charities and other “trusted” local organisations in times of hardship and distress.

But there is hope. Since opening its office more than a decade ago, UTASS has grown to 1,600 family members. Run by nine members of staff – mainly farmers and volunteers – today the charity provides a range of support to rural communities in the Durham Dales.

Farmers can help address poverty by working with other farmers, believes Ms Spark.

This includes sharing resources, such as labour; providing mutual support when it comes to IT and paperwork; and harnessing voluntary action to improve the local area.

The test will be to build on all of this at a time when the challenges faced by upland producers are as big as ever. Hill farmers may look after some of the country’s most picturesque landscapes, but many are clinging to their livelihoods by their fingertips.

‘Farming’s becoming more challenging’

Robert and Kathleen took on the tenancy of a farm in 1994. Both from agricultural backgrounds, they said farming was becoming more challenging in Teesdale. Managing day-to-day costs remains the main difficulty.

“The landlord wants more money from our farm but we are restricted in the types of farming we can and cannot do. It’s not easy to diversify; even if we did the landlord would want a share in any extra income generated.”

Robert needs regular treatment at a hospital – a two-hour drive each way. Distance is just part of the problem: the journey is expensive because they have to use a 4×4 vehicle. “The cost of fuel is high; we need a pickup to farm here and a tank of diesel costs us £80.”

As in many other families, the couple’s son helps out on the farm when Robert is unable to work. They frequently receive their single farm payment late. “You just have to get on with it. We have a bit in the kitty”.

‘Income doesn’t match price rises’

Anne has been farming in Teesdale for more than 45 years on the same holding (56ha). During foot-and-mouth disease, the farm lost £30,000 and she received financial support from the charity RABI.

“Things are dearer – feed, fertiliser, fuel,” she says. “The price of stock has gone up to compensate but our accountant told us that prices are not in line with inflation.”

Since her husband died, Anne’s son David has helped out on the farm – combining this with a part-time job at an auction mart.

After breaking his arm, David continued to work on the farm while it healed. He also has to work when sick to make ends meet.

Anne and David were already committed to buying a second-hand tractor costing £24,000 when they learned that their single farm payment would be late last year.

They were expecting £11,000 from their payment and instead had to sell cattle to cover the expenditure.