Inflation to hit farm business margins in 2022
Rising costs will be crucial to farm business planning over the next six months as high rates of inflation impact the UK agricultural economy.
Prospects are examined in detail in the latest edition of the AHDB Agri-Market Outlook, with a particular focus on our agricultural industry.
The pandemic has been unusual in economic shock terms both in its speed of onset and its magnitude, as well as its uneven impact across the economy as a whole. The agricultural industry has been particularly hard hit in a number of areas, such as the reduction of the food service market or staff absences exacerbating labour shortages in abattoirs and across food processing caused by Brexit.
Both Covid and the EU exit have led to the so-called scarring of the economy – those permanent changes that will slow down its ability to return to "normal." These factors can be seen clearly in agriculture, both in supply chain management and in consumer behaviour.
Sarah Baker, AHDB Economic Strategist
