Level of investment in farming ‘likely to fall’

COUNTRYSIDE campaigners have warned the fragile rural economy could endure a further setback as investment in farming and other businesses is expected to fall over the next 12 months.

A new survey published today by the Country Land and Business Association (CLA) has revealed more than a quarter of all rural enterprise is predicting lower levels of investment.

The CLA’s president, Harry Cotterell, stressed the lack of investment could have a “detrimental impact” on business growth and the potential to diversify.

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He added: “Rural areas were last to enter the recession and there are no significant signs of recovery yet. However, confidence is returning, but it is slow and happening in a very fragile trading environment.”

The research by the CLA and rural property consultants, Smith Gore, examined more than 100 businesses in the first quarter of 2012 to provide a snapshot of rural economic life for farming and non-agricultural sectors.

The survey found that while confidence is increasing, with more than 85 per cent reporting the same or higher sales in all sectors, lower levels of investment remain a worrying factor for more than 25 per cent of all businesses.

Rural firms, such as property and tourism enterprises, reported higher confidence, with almost one third feeling more optimistic than last year and 15 per cent expecting to increase employment. Farming businesses surveyed said that employment will remain stable, with 79 per cent looking to maintain job numbers at the current level.

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But grave concerns remain over hidden poverty blighting the region’s rural areas. The Yorkshire Post revealed on Saturday that charities had warned that people living in remote communities face huge gaps in key services.

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