Conducted before the sudden closure of the Sustainable Farm Incentive (SFI), the NFU has revealed the results of its annual Farmer Confidence Survey, which make for depressing reading.
The NFU believed that confidence had dipped as low as it would go last year, when the Conservatives came under fire from growers. Last year’s survey showed that short-term confidence had dipped to -25 and mid-term confidence to -22.
However, this year’s results have dropped further, with short-term confidence now at -35 and mid-term confidence even lower at -38.
These are the lowest figures since the survey began 15 years ago, and the NFU posits that the figures would be even lower if the survey were retaken now.
NFU president Tom Bradshaw said: “When our Confidence Survey results came out last year, we thought we’d hit rock bottom. When we were initially looking to release our survey results today, we knew we’d hit a new all-time low. Now, with another hammer blow dealt to the farming sector without warning last night, I’m realising there is no such thing as rock bottom as far as Defra is concerned.
“Where is the transparency? Where is the accountability? Last year Defra closed applications for Capital Grants, grants that are used for important environmental work such as tree planting, buying equipment to improve air and water quality, or habitat restoration, with no notice, leaving farm businesses in the lurch. Last year this government promised us they wouldn’t introduce a tax on family farms upon death, but they did, leaving many farming families without hope for the future. And now they are taking away Direct Payments – faster than they originally promised – leaving farmers with no alternative scheme to plug the financial hole they find themselves with.
“No business can be expected to plan, invest, grow and increase its economic contribution, whilst hitting government environmental targets, when it is being slammed time and time again by policies which strip away its profitability.
“Business confidence was already low. Now we are in a situation where the farming community has no confidence in the government.”
The survey also revealed that:
- 85% of landowners believe that the reforms to Inheritance Tax will increase their liability, with 32% of these respondents saying that they plan to reduce investment to mitigate this.
- 88% said that the phasing out of Direct Payments will negatively impact their businesses.
- 76% expected to be impacted by the increase in employers’ National Insurance contributions, with 65% believing this would directly impact their profitability and 43% saying they would reduce investment to offset these costs.
- 84% believed that regulation and legislation remained key issues which would negatively impact their businesses.
The NFU has once again highlighted its Blueprints for Growth which it believes would help reverse the collapse in farmer confidence and enable investment.
Mr Bradshaw added: “As I told delegates at NFU Conference just a few weeks ago, the focus remains steadfast on providing solutions for our industry. These Blueprints set out a detailed vision of what’s needed to underpin sustainable, profitable farm businesses, while producing food for 70 million people and protecting and improving the great British countryside.
“If government wants to rebuild confidence, work with us, not against us. We are ready and waiting to help set a new brighter course for the UK farming sector.”