A combination of bad weather, Government spending and unstable input prices have left farmers feeling the pinch, while pressure on retailers is being reflected at the farm gate. Farmers will need to think ahead to weather the current storm.
Ongoing changes in governmental support means farm outputs are more volatile in world markets, and while bank base rates have been falling rapidly in recent months, farmers do not always feel the benefit. This can be due to significant debt on unsecured loans and higher payments imposed by banks when lending money under these circumstances.
Unpredictability in prices, specifically for oil-based inputs, fertilisers and energy, has hit farmers hard. Although world oil prices have dropped recently, farmers have not been able to take advantage of this due to forward buying by suppliers and farmer buying group decisions earlier in the year. Processors and retailers also face margins being squeezed as the UK heads deeper into recession. The effects are already being felt in farming, with signs of downward pressure on farm gate prices.
ADAS helps farmers unde...
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