Agriculture health check shows region leads the way

Yorkshire agriculture is outperforming other areas. Below: William Ballmann of Gateley's

Just 13 per cent of the region’s agricultural businesses have a higher than normal risk of insolvency, according to financial trade body R3. Its data indicates that levels of “agricultural distress” have dropped steadily in the county over the last six months, falling by almost three per cent since April with 203 agricultural businesses identified as being at high risk in May out of 1,472 active companies.

William Ballmann, the firm’s chairman of insolvency and partner at national law firm Gateley LLP, said: “It is encouraging to see signs that in Yorkshire where many livelihoods still depend on the land, farming enterprises are starting to recover.

“With growing concern from consumers about food provenance, including an increased focus on organic farming, this resurgence may be an indication that farmers are starting to benefit from growing demand for quality, local produce.”

William Ballmann, partner and head of Gateley's Leeds office.

He said R3’s research did not indicate why Yorkshire’s agricultural sector was outperforming the industry in other areas, but he added that there are challenges ahead for farmers, not least increasingly competitive supermarket price wars.

Farmers still face tight margins for their produce, with recent farmgate price cuts to milk and beef providing clear evidence of the squeeze, but agriculture has proven to be resilient during the lean global economic situation of recent years. Figures highlighted by the National Farmers’ Union show that the industry’s contribution to the UK economy has increased by 54 per cent in five years - between 2007 and 2012.

The Country Land and Business Association’s regional director for the North, Dorothy Fairburn, agreed that the rural economy is starting to turn a corner.

“We are definitely seeing green shoots of recovery in the region and the rural economy seems to be picking up again after a difficult time last year.

“Confidence is key as it influences investment and production intentions and the recent relaxation in planning rules for converting redundant agricultural buildings into homes, offices and work spaces has provided a real boost.”