Direct farm support at livestock precision tech, says think tank

The think-tank, Social Market Foundation (SMF), is urging the government to direct farming subsidies towards investment in precision technologies to help cut food costs, improve productivity and boost growth.

Research recently commissioned by the SMF found many farmers are holding off on spending money to modernise their operations due to uncertainty about post-Brexit funding streams.

Agricultural productivity is a focus for the government’s new Growth Plan, with Defra secretary Ranil Jayawardena proclaiming his department “an economic growth department” at the Conservative party conference earlier this month.

See also:Transition Podcast: How technology can help profitability

However, only 9% of government grants in England are earmarked for productivity-enhancing activities, according to The path to sustainable farming: an agricultural transition plan 2021 to 2024 by Defra.

British farming has not kept pace with productivity growth; productivity has risen just 10% since 1990, compared with New Zealand which has improved by two-thirds, according to the US Department for Agriculture. 

Precision farming tools, such as electronic identification (EID) tags, smart weighing systems, monitoring collars and farm management apps, could help close this productivity gap between the UK and other countries.

Academic evidence suggests these tools could also improve animal welfare and reduce greenhouse gas emissions.

Research findings

The SMF carried out in-depth interviews with 10 livestock farmers across England, Wales and Scotland, who ranged from “vanguards” of technology adoption to non-adopters.

While farmers are open to using more technology – and recognise the benefits of new developments – they feel “stuck in a limbo” as policy uncertainty is a major barrier to its widespread adoption, researchers found.

Farmers said:

• Government policy announcements were complicated and confusing to navigate
• Unpredictability surrounding future food policy made it hard to plan and make investments
• Government grants are not structured, user-friendly or accessible.

Aveek Bhattacharya, SMF chief economist and co-author of the report, said farmers were uncertain whether they would be farming in five years’ time or what they would be incentivised to do. This made cost the most “pervasive” barrier.

He pointed to the fact interviews were conducted before the war on Ukraine and the change in government in early 2022, and these uncertainties would be even more pronounced now.

He added: “Cost is the number-one barrier to investment in technology. Geopolitical instability and inflation will have only exacerbated that.

“Brexit offers the opportunity to fundamentally change the subsidy system and address British farming’s longstanding productivity challenges.

“Yet that opportunity is being squandered, and uncertainty over the future of agricultural funding risks making things worse by undermining farmers’ confidence and ability to invest.”

Recommendations to improve adoption

The SMF is calling for subsidies to be shifted towards productivity-enhancing grants.

It has also made four other key recommendations:

• Raising awareness of cutting-edge methods among farmers: a new “what works centre” for agriculture must be established with government support within the next 12 months to help farmers understand to collect and analyse evidence of practices
• Better data-sharing and benchmarking facilitated through the Livestock Information Service
• Requiring EID for cattle, a move that has improved the use of technology in other countries
• Making farming more attractive as a career to younger people, including reviewing generosity and eligibility criteria of young farmer payments.

Commenting on the report findings, Thomas Burston, deputy director of the Food, Farming and Countryside Commission, called for a clear and immediate policy framework, adding:

“Clarity around the direction of agriculture is high on the list of stresses that farmers feel contribute to significant mental health [challenges] as well. Policy uncertainly introduces huge levels of risk for farmers.”

The full report, Moovin’ on up, which was sponsored by MSD Animal Health UK, is available to read on the SMF website.