Eight in 10 farmers believe that higher input costs have not been reflected in higher farm gate prices
October 2023 - Industrial
Eight in 10 farmers believe that higher input costs have not been reflected in higher farm gate prices: A survey of farmers has revealed that 82% believe that higher input costs have not been reflected in higher farm gate prices, with a quarter saying they are 'very likely' to cut production if prices do not represent higher input costs more fairly. Almost half the respondents polled said they would consider cutting production in these circumstances.
The survey of 300 agricultural customers of Virgin Money asked questions around input cost, the impact of Brexit and new UK farming policy, as well as the future plans for farmers.
It also found that 51% have made investments in their business in the last 12 months, versus just a third who anticipate investing next year. For 38% of the farmers polled, any potential investment over the course of the next year will only be possible by securing some form of grant support.
Looking at the areas where participants would focus, automation and equipment came top with two thirds saying they would look to invest (67%) followed by precision farming (55%) and renewables (33%).
The research also highlighted that many farmers are seeking to diversify with a quarter saying they have done so in the past year (26%).
When asked questions around Brexit and its impact for farmers, 37% said they believe over the long-term agriculture will be worse off, with just 16% saying they believe it stands to be better. When asked about the effects of Brexit, one in five respondents said it will result in increased costs, with respondents also pointing to less industry support (19%) and labour shortages (17%).
Stephen Buchan, Head of Agriculture Scotland at Virgin Money said: “This annual survey provides us with great insight into our farming customers’ thinking, their concerns and plans, and it also demonstrates the profound resilience of the sector, particularly in Scotland."
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