The National Farmers’ Union has outlined the key challenges facing British agriculture to the country’s leading banks, and how best to support growers
The risks associated with farming appear endless, the inherent unpredictability at its core being exacerbated by a worsening climate crisis, leading to further uncertainty. Worse still, the banks that provide finance for the agriculture sector may look at those same risks and think again.
The National Farmers’ Union (NFU) intends to show bankers in the agriculture sector how they can best support the industry, gathering the top banks in the UK to outline the main challenges facing British agriculture, not the least the impact of the crisis in the Gulf.
As part of its bi-annual banking roundtable, the NFU gave a stark assessment of the pressures facing farm businesses, as the Middle East conflict sends production costs soaring.
The banks also learned how continued uncertainty over the future of agri-environment schemes, as well as the growing impact of climate change on food production, are putting further strain on the sector. The NFU highlighted the potential of Defra’s Farming & Food Partnership board to provide opportunities for growth.
“It was important to set out these pressures to the banks, so they understand the reality facing the industry that produces the nation’s food, as well as its energy and environmental goods,” said NFU deputy president Paul Tompkins.
“British farmers are a resilient bunch,” he added, “but that resilience is being put under more and more pressure. With direct payments all but gone, farm businesses are more exposed to economic shocks, while the risks of producing food continue to rise.”
Tompkins said it was “encouraging” to see the positive reception of the banks. “We look forward to working with them to strengthen resilience and restore profitability across the British agriculture industry,” he concluded.
