Farmers call for interest-free loans to protect next year's food production
The exceptionally hot, dry spring and summer has meant this could be the worst harvest on record, while livestock farmers have had to deal with bluetongue.
A raft of farming groups have urged the Government to back interest free loans to struggling farmers that have been hit by extreme weather and animal diseases such as bluetongue.
The campaign is being led by the National Farmers’ Union and the Central Association for Agricultural Valuers (CAAV), who are saying without support there will be a struggle to produce next year’s food.
A shortfall in cereals and oilseed could be costing UK farmers as much as £390m, and that is just one sector.
All of this has been compounded by increased production costs for fuel, fertiliser and energy due to the war in the Middle East.
NFU President Tom Bradshaw said: “[Environment Department] Defra’s strategic commitments last week were a welcome and important step towards building greater water and long-term resilience on farms. But farmers face an immediate crisis in cash flow and confidence.
“Rain has come too late for lost harvests and slashed yields, while livestock farmers are dealing with the worst bluetongue outbreak to reach our shores.
“Many are worried they will not have money in the bank to plant next year's crops or replace livestock lost to bluetongue.
“When we met the Prime Minister on farm in Cornwall, he acknowledged the scale of the challenge and said the commitments were a ‘first start’, but there was ‘more to come’. This was a welcome shift from government.
“That is why we have brought farming organisations together to agree the urgent action and investment needed to keep businesses afloat, protect next year’s food production and safeguard long-term food security.”
The NFU held a roundtable with members of the agricultural sector, which called for a “Keep Britain Growing Loan”.
This would provide government-backed interest-free borrowing that is directly linked to the losses caused by drought.
It would give farm businesses the working capital to produce next year’s food.
They also called for a fallen stock scheme to help livestock farmers affected by bluetongue to meet the rising costs of the collection and disposal of diseased animals.
“Many parts of farming face serious problems of cash flow and liquidity as they look into the autumn,” says Jeremy Moody, secretary and adviser to the CAAV.
“The NFU proposal for a Keep Britain Growing Loan offers a positive opening to the necessary debate for ways forward that are sufficient and effective.
“But a much larger package of reforms is required to answer the long-term problems that farmers are facing. The challenges we face are moving faster than policy is responding.”
After meeting with the NFU, Andy Burnham said the Government has a “long way to go to build back trust” with farmers, and that the UK needs to “guarantee our own food production going forward”.
He unveiled a £65m funding package for farmers, amid fears hot, dry weather could drive up food prices on supermarket shelves.
A Defra spokesperson said: “As the Prime Minister has said, food and farming is part of national resilience and we’re acting now to support the sector.
“Our £65m support package is just a first step towards helping farmers build drought resilience.
“We are listening and understand how difficult times are, and we will keep working closely with farmers to protect and promote British farming.”