Arable farmers in the UK are facing an estimated loss of over £828 million in revenues from this year’s harvest, according to new research from the Energy and Climate Intelligence Unit (ECIU).
The new analysis by the ECIU attributes this reduction in revenue as a result of crop production across the UK “being hit by the hottest spring and summer on record as well as drought conditions.”
These findings comes ahead of the Department for Environment, Food and Rural Affairs’ (Defra) report next week, which will confirm provisional production estimates for harvest 2025, after earlier figures showed England had suffered its “second worst harvest on record” and indicated a “similarly poor” outcome nationwide.
ECIU
Tom Lancaster, who is an analyst for land, food and farming at ECIU, explained that it has been “another torrid year for many farmers in the UK, with the pendulum swinging from too wet, to too hot and dry.”
“British farmers have once again been left counting the costs of climate change, with four fifths now concerned about their ability to make a living due to the fast changing climate.
“With confidence in the sector at rock bottom, there is an urgent need to ensure farmers are better supported to adapt to these climate shocks and build their resilience as the bedrock of our food security.”
Lancaster highlighted that a timely re-launch of vital green farming schemes and an overall, more concerted effort from industry and government will be needed to transition land use and agriculture to greener, more resilient methods.
Research
Within the research published by ECIU, the value of UK production for arable crops – such as wheat, spring and winter barley, oats and oilseed rape – is estimated to be £3.4 billion in 2025.
This is a 20% reduction, or a loss of £828 million, compared to average harvest estimates over the last 10 years.
The ECIU stated that this year’s poor harvest has been compounded by low farmgate prices for these arable crops.
However, almost all of the shortfall in revenue is reportedly “a function of lower production, with prices now close to the 10-year average.”
The ECIU’s report noted: “The low prices now reflect the fact that the UK is too small to have an influence on global prices of these key commodity crops.
“With no market effect on prices to cushion the blow of this lost production, UK farmers are particularly exposed to the impact of climate shocks.”
Farmers
Following this summer’s drought, David Lord, who is an arable farmer from Essex, said that he is unsure about how many more similarly poor years the arable industry can take, especially with costs reportedly rising higher than prices.
He commented: “As a farmer, I’m used to taking the rough with the smooth, but recent years have seen near constant extreme rainfall, heat and drought.
“It’s getting to the point with climate change where I can’t take the risk of investing in a new crop of wheat or barley because the return on that investment is just so uncertain.”
