Higher inflation hitting farming industry

Farming input costs, which include the cumulative costs for resources used in farm production – things like seed, energy, chemicals, animal feed, fuel and equipment – have risen by an incredible 24 per cent, with three of the main inputs – animal feed, fuel and fertiliser – seeing double figure percentage increases.

Higher inflation is hitting every enterprise of British agriculture and no one within the farming industry is immune to the effects it is having or able to avoid the devastating impact of soaring costs.

The causes are deep-rooted and go beyond the war in Ukraine and the ongoing Covid-related lockdowns in China. There are a number of factors in play, all contributing to the problem, but the bottom line is UK food production is likely to decline as input costs rise and other financial burdens continue to take their toll.

These challenges are casting doubt on the farming industry being able to maintain food supplies for the coming year and there are concerns that if our food production continues to be hit, then we may once again witness consumers panic buying – mirroring the experiences of the early days of the pandemic.

The farming industry is resourceful but there is little doubt that cashflow will be one of the biggest threats to many farming businesses, restricting the ability of some to grow crops and produce livestock as they plan for the following year.

It is also important for retailers to fully understand the challenges farmers face and failure to do this will undoubtedly have an impact on any food shortage and food security within the UK.

There are a lot of problems associated with food production, many of which we find ways to overcome, but if we have no food there is only one problem – and it’s a big one.

Oliver Scott is farm manager at Bradford Estates