The National Farmers Union (NFU) has responded to the Department of Environment, Food and Rural Affair’s (Defra’s) farm profitability review by highlighting sector-specific reforms it feels are necessary to support farming incomes.
NFU President Tom Bradshaw said: “This review led by (former NFU president) Baroness Batters comes at a critical moment for the farming industry.
“It lands as farmers face a perfect storm and for many, it’s become a battle to keep their businesses afloat.”
The NFU said its submission is aiming to promote opportunities for investment by improving access to finance and effective tax reliefs, which will help stabilise markets, and in turn boost investor confidence.
Suggestions included in the reforms include business development through avenues such as better research and development, knowledge transfer, and modern frameworks.
The NFU also recommended improving supply chain relationships by promoting market incentives such as the Sustainable Farming Incentive (SFI) to promote fair markets and environmental goals simultaneously.
The NFU have said it will focus on the key themes and priorities that will boost the industry while securing the nation’s food security and environmental targets.
NFU
Bradshaw said: “Confidence is at an all-time low, with deep uncertainty over investment and environmental schemes, climate pressures and resulting changes to our weather, increasingly volatile markets, and threats from changes to inheritance tax.
“In some sectors, farmers’ focus on food production is now overshadowed by a fight for financial survival.”
Bradshaw explained how the review has the potential to identify these sectors and boost competitiveness, which will in turn drive profitability and food production.
The union president said: “The recommendations and actions outlined in our submission will help create a more collaborative and equitable marketplace, enabling our farmers and growers to invest in their businesses and drive profitability and growth in the long-term.”
Bradshaw said farms are the ‘foundation’ of the food industry, which is responsible for four million jobs across the UK with an economy worth of £148 billion.
“We must ensure our farms are profitable and viable so they can keep producing sustainable and affordable food alongside renewable energy, drive economic growth, provide jobs, and deliver our national environmental ambitions,” he added.
