Farmer confidence in the dairy and livestock sectors has risen over the last year, according to a survey by the NFU.

The falling pound, increased commodity prices and export levels have created a more favourable environment for these sectors, the survey finds. However, confidence has fallen in the horticulture and poultry sectors. Farmers in these sectors cited rising wages and a shortage of labour as areas of concern.
 
Although they improved from the last survey, and are higher in the short term, arable farmers’ confidence levels were reported as ‘negative’, meaning the majority of arable respondents have a negative outlook for the year ahead.
 
Overall, according to the NFU, farmers’ outlook is less optimistic in the long-term. This is largely down to the Brexit vote; although a majority of farmers voted for Brexit, uncertainty over how agricultural policy and future trade arrangements with the EU and third countries will look is proving a serious concern in the mid- to long-term.
 
Commting on the survey on Monday, NFU President Meurig Raymond said, “Increased farmer confidence comes after a year of huge challenges to the British farming industry and we are pleased that our members are feeling positive for the year to come. Any increase in price received for farmers is welcome news and we hope these are sustainable for years to come.
 
“It is no surprise that the Brexit vote has impacted the confidence of farmers in the longer-term and uncertainty surrounding our future relationship with the EU, our ability to negotiate future trade deals and access to non-UK labour has all taken its toll on confidence.“
 
Members told the NFU, as part of its seventh annual farmer confidence survey, they anticipated positive effects on their business from the consumption levels of British produce (58%) and output prices (46%). However, farmers feel that input prices will have the most widespread negative impact for the coming year (74% negative), followed by regulation and legislation (53% negative). More members also said they were borrowing money in this year’s survey.
 
On the plus side, renewable energy diversification has grown steadily over the past three years, growing from 30% in 2015 to 35% in 2016, with solar electricity and biomass heating the two most popular methods.
 
Mr Raymond said: “The NFU has made it clear that for farming to have a profitable and productive future we need reassurance on key issues resulting from Brexit; such as access to a competent and reliable workforce and the best possible access to the Single Market.
 
“It is clear that farm businesses still remain under pressure and this survey demonstrates a dependence on borrowing from banks which is concerning. We have recently met with senior bank officials and will continue our discussions to make sure they understand the concerns of the farmer on the ground.”