Farmer confidence hits record low, NFU survey finds
© Adobe Stock Farmer confidence in England and Wales has plummeted to its lowest level ever, according to the NFU’s latest annual Farmer Confidence Survey, reflecting the multiple blows the sector has faced in recent months.
Short-term confidence – which considers farmers’ one-year outlook – has decreased by 10 points since last year, taking the NFU’s index down from -25 to -35.
Mid-term confidence, which considers the three-year outlook, has fared even worse, slipping 16 points, from -22 to -38.
See also: ‘Cruellest betrayal’ as Defra halts new SFI applications
The NFU is quick to point out these findings came before this week’s shock announcement from Defra to close the Sustainable Farming Incentive (SFI) 2024 scheme immediately.
Prior to that, farmers had already had to contend with an increase in employer national insurance contributions, the accelerated phase-out of direct payments, and plans to charge inheritance tax on farm assets.
NFU president Tom Bradshaw said: “When we were initially looking to release our survey results today (Wednesday, 12 March), we knew we’d hit a new all-time low.
“Now, with another hammer blow dealt without warning last night, I’m realising there is no such thing as rock bottom as far as Defra is concerned.”
The survey also showed that, for the first time ever, farmer investment is drying up, with farmers and growers reluctant to spend in key areas such as machinery, infrastructure and energy efficiency, creating a significant barrier to growth.
“The SFI news will only exacerbate cashflow issues and farmers’ capability to invest,” said a statement.
Key survey findings
- 85% of landowners believe the reforms to inheritance tax will increase their liability
- Of these, 32% say they plan to reduce investment to mitigate this increase
- 88% of respondents said the phasing out of direct payments would negatively impact their business
- 76% of employers expect to be impacted by the increase in employers’ national insurance contributions
- Because of this increase, 65% said they expect a reduction in profits, and 43% expect to reduce investment to offset these additional costs.