Agriculture in Northern Ireland is 15% financially worse off than a year ago, according to Farmers for Action (FFA).
Two factors have come into play in arriving at this conclusion: the steady erosion in farm gate returns over the past number of months and the hike in all farm input costs caused by the outbreak of war in the Persian Gulf.
FFA’s William Taylor indicated that a recent report from the Andersons Centre confirms the ‘agflation‘ pressure now impacting on the farming sectors across the UK.
He added: “Even if the war in the Persian Gulf was to end today, the implications of the conflict will be felt across the farming sectors well into 2027.”
International grain supplies
Meanwhile, the FFA representative is concerned that international grain availability could be the next challenge facing the UK’s livestock farming sectors.
He said: “Escalating fertiliser prices may well lead to a reduction in world grain production. This has already been signalled by farmers in parts of Australia.
“A reduction in the global supply of cereals could have a direct impact on farming in Northern Ireland for two important reasons.
“Compound feed prices will strengthen in response to a potential shortfall in grains.
“However, we could also see a fall-off in livestock production if feed supplies start to tighten in any significant way.”
Food self-sufficiency
According to the FFA representative, such a scenario could lead to a further reduction in food self-sufficiency levels across the UK.
He explained: “Britain is currently 63% self-sufficient in terms of its indigenous food output levels.
“However, this figure could drop to below 50% if world grain supplies were to come under pressure.
“This is an extremely worrying scenario given that one major war continues to wage on mainland Europe and hostilities in the Middle East show no sign of ending in the near future.”
According to Taylor, all of this leaves agriculture, particularly in Northern Ireland, in a “parlous state”.
He called on both Stormont and Westminster to act to address the issues relating to food security.
“This will mean farmers getting prices for their produce that covers all costs of production and which are inflation-linked.
“Farm families must also have the scope to invest in the future of their businesses.
“Introducing effective legislation is the only way of securing this objective,” Taylor said.