According to survey results published yesterday by the National Farmers Union (NFU) the prevailing attitude in farming is one of 'fragile optimism,' with farmers ready to increase production and invest in the future. The union said the quiet confidence across the sector appears to have been substantiated by an increase in profits for around 20 per cent of businesses, compared to 13 per cent last year. image expired

The NFU said that, overall, confidence from farmers is on the up with many more positive about the future and looking to increase production in the next five years. However, a large proportion of respondents expressed fears about the future, with 30 per cent reporting a worsening situation or fears about their business' survival in the future.

Dairy is one of the worst affected sectors; here 42 per cent reported a decline in profitability and concerns about their business' long-term survival this year, almost double the 25 per cent who expressed the same fears last year.

NFU Director of Policy Martin Haworth commented on the temperature check, "As ever reporting on farming fortunes is a mixed bag with overall confidence on the increase while some sectors remain hard pressed."

He expressed deep concern over the findings from the dairy sector, "The results from the dairy sector are not surprising and validate NFU calls for the recent rises seen in the milk price to be shared across the supply chain. Currently only 9.6 per cent of dairy farmers are seeing a positive impact on their bottom line. The fact UK dairy farmers are languishing around the bottom of the EU milk price league table is lamentable and efforts to agree an industry voluntary code of best practice for contracts need to be doubled to safeguard the future for many British dairy farmers."

On Tuesday (23rd August) Robert Wiseman Dairies announced it would be increasing price paid to its suppliers by 1.85ppl from October; though the price increase puts Wiseman’s ahead of its competitors, with suppliers standing to receive 28.46ppl, it still falls below the 29.1ppl production price released by the NFU in March. Since that time raw materials costs including fuel and feed have also risen significantly.

Profitability increasing in beef and sheep sector

On the back of positive reports from the beef and sheep industry, Mr Howarth welcomed the creeping optimism the report suggested from the sector, "For every sector, price clearly has a strong influence on farmer confidence. In a sector where profitability has been historically low, such as across the beef and sheep industry, the survey points to rising confidence but it’s undoubtedly linked to headline prices and profitability expectations shows that confidence remains fragile."

Other results from the NFU survey revealed 50 per cent of farmers were looking to increase production in the next five years, a 15 per cent increase on last year’s number, and a "clear signal" that farmers are seeking to invest in their business in the long-term. Around 62 per cent of farmers are also looking to invest the same or more in buildings and more than 70 per cent said they recognised the need to invest more or the same in skills and training for their farm.

Mr Howarth welcomed these results saying they showed farmers in England and Wales were in a good position to increase food production while safeguarding the environment, which will be essential in securing longevity for British farming.