Resilient farmers gaining in confidence

A study published by the National Farmers' Union (NFU) showed that more than one-in- three farmers more confident about their prospects than they were last year, with producers increasingly assured about agriculture's chances over the next five years.

Long-term confidence was tempered, however, with concerns about the short-term, with farmers less optimistic about the next 12 months.

The NFU said concerns over regulation and input prices were among those issues holding back short-term confidence and farmers needed a greater sense of optimism about coming years in order to drive investment.

In a surprising twist the union's research showed optimism among dairy farmers to be among the highest, with mixed use, pig and poultry farmers all shown to have increasing levels of confidence.

The study comes against the backdrop of a long-term malaise in the dairy sector, with low prices and high overheads driving some two dairy farmers a day out of production.

NFU chief economist Tom Hind said the results were "encouraging".

"Above all, they demonstrate a high level of commitment and longevity to individual businesses," he said.

"Almost 40 per cent of businesses surveyed believe they will be in operation for over 21 years.

"This is testimony to both the resilience of farmers and also the historical and family legacy attached to many businesses.

"Nevertheless, there are some concerns that general levels of confidence are not high enough to provide the necessary encouragement for farmers to invest financially in their businesses, with particular concerns about lower confidence levels among livestock farmers.

"Investment will be absolutely essential, not only to meet regulatory demands, but especially to secure a more competitive productive sector long-term."

Mr Hind also warned the survey should be viewed in its proper context, with the research having been conducted prior to last week's Comprehensive Spending Review.

Agricultural policy director with LloydsTSB Dick Mason said that his bank had seen a 16 per cent increase in lending to banks in the past 12 months and that farmers generally proved attractive borrowers to banks owing to their high level of assets.

"I think the industry has faired better than through the recession than some other sectors," he said.

"We always make sure that any applicants can afford to borrow the money they are applying for."