Be mindful of other business risks during pandemic

As the youngest son of a dairy farmer in Ludlow, I, like many others in the area, have seen how the agriculture industry in Shropshire, and the wider UK, has been affected by Covid-19. Ensuring an uninterrupted food supply chain remains a key priority and while the industry has stayed resilient by and large, many businesses have suffered from labour shortages and changes in demand. The closing down of the hospitality sector has resulted in a hard hit to milk, lamb and beef prices.

What this pandemic has demonstrated is that business resilience and risk management have to be consistently front and centre. Agribusinesses will see immediate and longer-term benefits by reviewing their risks now and instating a mitigation strategy aimed at preventing any future external events from causing major setbacks to operations. In addition to Covid-19, four pertinent risks require close attention.

Flooding: As we have seen over the past six months, Shropshire is a flood-prone area. Extreme weather can therefore have adverse effects on crop production. Farmers must be vigilant about making sure those who are responsible for watercourses are taking protective actions. Hands-on land management practices, such as ditch maintenance, drain jetting, use of cover crops and water catchment can help to prevent damage to property and assets. Flood cover can also help businesses recover from the impact of excess rainfall.

Health and Safety:

One in five fatal injuries to workers occur within agriculture alone so the industry is undoubtedly hazardous. Farmers should not rest on their laurels when it comes to health and safety.

With schools closed, many children of farmers are now at home all day. In some cases, this means their playgrounds are where business activity also takes place. Farmers should look at peak times of the year where increased demand or time pressures could lead to health and safety issues. During harvest picking for example, training is essential for temporary workers who may be less familiar with safety practices and machinery.

Rural crime:

With a current reduction in daily outdoor activity, it is likely that the number of routine tractor thefts will decline as they become less accessible to thieves. However, criminals will continue to explore alternative ways to exploit victims, with fraud becoming a rifer occurrence. Be it a suspiciously worded email from HMRC about a potential tax refund or a suspicious phone call, farmers must remain wary. Checking the structure of a sender’s email is in line with an organisation’s usual format and refusing to reveal personal details over the phone are both simple and sensible steps.

Without the right insurance cover and theft prevention measures in place, any incident could weaken or even debilitate day-to-day operations. Immobilisers, trackers on vehicles or having Passive InfraRed sensors (PIRs) with security lighting around buildings, can all deter thieves from trespassing. A comprehensive insurance policy can avert thefts from becoming expensive and time-consuming missions to recover valued assets.

Brexit and incoming legislation:

This year was meant to be the year that the UK Government finalised the details of what a post-Brexit future would look like. For farmers in Shropshire and across the UK, there is still more to be desired in terms of an outlook for the agricultural industry, including a need for clarity on the deals and tariffs that will be agreed, and what impact a delay from the coronavirus pandemic will have on negotiations.

The Agriculture Bill also remains on the horizon and could likely redefine the farming sector. The transition to this new system that aims to encourage diversification, innovation and increased environmental responsibility will not be an overnight process. Farmers will need to balance the new requirements with maintaining their principal role as food producers.

Covid-19 has certainly adjusted the perception of risks that farming businesses are exposed to, but it has also highlighted the need for a better understanding of how fundamental mitigation and resilience measures are. With the help of specialist guidance, farmers have a collective responsibility to ensure that the industry secures its position as the backbone of the UK food supply chain by keeping itself protected.