A new report from consultancy firm Development Economics says that for every £1 invested in farm support, farming delivers £7.40 back to the economy.
The results of the report, announced by Meurig Raymond at the NFU Conference in Birmingham on 21 February, mark the first time that farming’s contribution to the country has been expressed in monetary value.
The NFU president hopes this will highlight to the government the positive economic, social and environmental impact of the sector shortly before Article 50 is triggered by the end of March.
Steve Lucas, managing director of Development Economics, said: “This is an important moment in the debate around EU negotiations. For the first time we have calculated the total contribution of agriculture to the UK economy and society. This shows how critical farming is to the country and why the government must prioritise the sector during Brexit negotiations.”
Raymond added: “This report demonstrates well that money invested by government into UK farming is money invested wisely.
“With the right trade and labour conditions, this sector could deliver an even greater return to the country. Decision-makers in government can take this important message to the formal post-Brexit negotiations.
“For centuries farms have been deeply rooted in the rural community, stimulating the wider economy. Today’s report shows farming spends £15.3 billion on goods and services. Businesses providing animal feed, crop seeds and vets, to name a few, all depend on productive and profitable farms for custom.
“The iconic British countryside which farmers manage provides the backdrop for visitors from across the world – this tourism is worth over £21bn. With farms operating on 70 per cent of British land, we must ensure these farms are viable businesses in order to carry on delivering this.
“To increase the vital contribution farming makes to the economic, social and environmental well-being of the UK, government must ensure we have the best possible trade deals, access to a competent and reliable workforce and farm support that is fit for purpose. A future domestic agricultural policy has got to work for Britain.”
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