English farmers are grappling with a financial crisis as incomes fell across most farm types in 2023 due to extreme weather and government subsidy cuts.
The Department for Environment, Food and Rural Affairs (Defra) reported significant income drops for cereal, dairy, and livestock farmers.
These challenges are exacerbated by climate change and policy shifts, leaving many farmers concerned about the future.
Extreme weather events, such as floods, caused significant crop losses last year. Cereal farms experienced a staggering 73% decline in income, while dairy farms saw a 68% drop.
Livestock farmers faced a nearly 25% decrease, averaging just £17,300 annually.
Although net income from agri-environmental activities rose by 14%, it wasn’t enough to offset losses.
Further compounding the issue is the government’s reduction of EU-derived basic payments. Initially planned as a gradual transition to nature-focused payment schemes, the cuts have been far sharper than anticipated.
Sharper-than-expected payment reductions risk financial stability for farmers across England.In her first budget, Chancellor Rachel Reeves announced a 79% reduction in these payments, leading to substantial financial strain. For instance, a farmer expecting £38,000 will now receive only £7,200.
Farmers like Olly Harrison, who operates near Liverpool, warn that 2024 could bring even worse outcomes. He cited poor weather conditions and reduced grants for agricultural technology as contributing factors.
Harrison also highlighted the broader implications for food self-sufficiency, with the UK currently relying on imports for 40% of its food.
Calls for change are growing louder. Industry leaders like Martin Lines of the Nature-Friendly Farming Network advocate fairer pricing, improved supply chain treatment, and international trade policies that support UK farmers.
They also emphasize the need for investments in sustainable farming to enhance food security and protect the environment.
While the government has allocated £5 billion to support sustainable agriculture and announced £60 million in recovery payments for flood-affected farmers, confidence in the sector remains low.
For many, the need for policy reform and climate resilience measures is more urgent than ever.