Shropshire Farming Talk: Support UK produce to benefit us all as a society.

Much of the media coverage on the economy has been on the impact on the consumer, but the cost of production has impacted farmers after years of relatively low priced food being offered on the shelves.

Given the long lead-in time for buying inputs, the resources used in farm production like chemicals, equipment, feed, seed, and energy, the opportunity to make profits from the 2023 harvest is going to be tight.

Over time, prices of farm inputs have increased relative to commodity prices, creating what farmers describe as a cost-price squeeze.

Meanwhile, retail industry body the British Retail Consortium has told consumers to expect a three to nine-month lag to see price falls reflected in shops.

They suggested that as food production costs peaked in October 2022, consumer food prices should start coming down over the next few months.

The goodwill towards farming during the 2020 lockdowns seems a distant memory.

One of the very few positives of the Covid-19 pandemic was that it made those working in agriculture focus their minds.

With international supply chains impacted, we saw consumers saying they wanted more sustainable, locally produced food.

Buying products made close to home comes at a price so as a society we were, with hindsight, likely to see the ideal of “shopping local” come under pressure if a cost of living crisis took hold.

As an aside, given the challenges of rural living for those used to city life, it was perhaps inevitable that the drive for remote working which led to people relocating to the country is now seeing a reverse move.

The newspapers have featured articles on people who have moved back after struggling to adjust to the practicalities of living in the countryside.

Similarly, when it comes to crops and food, wanting to support UK farmers but insisting on the cheapest prices is going to be counterproductive.

The message to consumers should be that their support for UK produce during the current year and beyond will benefit us all as a society.

For the sector, we need to be managing input costs more than ever. It is hoped that the price of fertiliser will drop, which could have a positive impact on our costs for the 2024 harvest.

At Bradford Farming, like all farming businesses, we are watching our margins closely.

In a fast changing environment farmers should not be scared to plan beyond the next 12 months, despite the current economic volatility, to ride through the spikes to secure a stronger future.

By Oliver Scott is Farms Director at Bradford Estates