The next 12 months are going to be 'tough for farmers' as the adverse weather conditions continue to have a knock on effect according to NFU Vice President Adam Quinney, as he spoke to members at a recent conference.
"We’re doing all we can to help farmers through these difficult times. We have spoken to all the major institutional landlords and the banks in recent weeks to explain the long term value of farming and the help farmers need now to get them through the difficult times as a result of the weather."
He continued, "I do believe it’s going to get better however. Look at the global picture –demand is slowly increasing from China’s middle class - which is bigger than the whole of Europe. We’ve got consumers that want our products – we’ve just got to make sure we grasp those opportunities."
Sarah Williams, representing HSBC bank, the sponsor for the conference, said, "We are committed to agriculture. We’re talking to people almost daily who need our assistance because of the weather. We are very supportive to our customers at these difficult times as we also have every confidence in the industry looking ahead."
Andrew Edwards, NFU Cymru Glamorgan County Chairman said, "I think 2012 will be remembered for the weather. Unfortunately I think many businesses will feel the knock on effects for the next three to four years.
"I must thank HSBC for sponsoring the conference and John Lougher and his family for hosting the meeting on their farm. I’m not so sure who I should thank for the torrential rain that poured down during the conference!"
DairyCo's Farmer Intentions Survey results for 2013 reflected the challenging year experienced by dairy farmers across the UK, with a significant increase in the number of dairy farmers saying they are uncertain about the future.
Confidence levels have also dropped, although to a lesser degree than may have been expected.
“The events of last year, particularly the weather, meant confidence levels were lower than in the previous survey,” says AHDB DairyCo senior analyst Patty Clayton.
“In rating their confidence over the next 12 months, 43% of farmers returned a score of four or five [five being extremely confident]. The proportion returning these scores increased marginally to 46% for measuring confidence over the medium term (the next five years).”
Clayton highlights that while the weather was one of the top three factors affecting confidence over the next 12 months, it did not appear as a significant factor affecting confidence over the next 5 years.
The strong sense of uncertainty that emanated from the survey responses this year was reflected in dairy farmers’ production and investment intentions.
“There was a noticeable increase in the proportion of farmers who were undecided on production levels two years from now, up from 5% in 2012 to 13% this year,” said Clayton.
“At the same time we haven’t seen a huge drop in the proportion of dairy farmers intending to increase production.”
