As this year’s main arable harvest draws to an end leading accountants The Fish Partnership is warning famers that the successful harvest could have a knock on effect on prices.
The latest harvest figures from ADM Germany suggest that more than 15.2m tons of wheat may be produced by British arable farmers this year - only slightly less than the 16m tons harvested lasts year. While it is estimated that the UK will also see a record barley harvest this summer.
These high production figures along with record wheat production in France and the rest of Europe could mean that grain prices may fall significantly over the next six to eight weeks as the market is flooded by a bumper harvest.
This situation has been made worse by existing stocks from last year’s record harvest remaining in storage, which may mean that this year’s crop will outstrip domestic demand by more than 2m tons, forcing prices down even further.
Paul Laird, a Director at the Fish Partnership and a specialist in the accounts of farms, said: “While harvests initially look good this year, there is a growing concern that prices may slump in the next few months, as both the domestic and continental wheat and barley market is swamped by excess grain.
“Farmers need to be prepared for this potential drop in prices by planning their finances carefully and budgeting around the worst possible scenario, where grain prices plummet sharply.
