A recent Barclays Business survey indicates that around half of UK farmers are planning to spend more on new and replacement machinery in 2011, than in the previous year.

According to the bank, the expected increase in investment could be signs of “cautious confidence” returning to the sector.

However, only one in ten farmers questioned at the 2011 LAMMA event (the UK’s leading farm machinery and equipment show) planned to invest more than £100,000.

About half of those planning to invest had between £25,000 and £100,000 in mind, while around two-fifths thought they would spend less than £25,000.

According to Barclays’ Business head of agriculture, Martin Redfearn, high prices for combinable crops have boosted the confidence of many in that agricultural sector.

However, he cautions: “Livestock farmers are likely to pay a high price for feed, based on the same forward prices, with little prospect of big reductions in this major cost area in the near future.”

The Barclays Business Agriculture survey covered 92 respondents who between them manage 34,000 hectares.