Farmer confidence at all time low with fears farms will go out of business and food costs will rise following months of wet weather

It means that arable, livestock, poultry, horticulture and dairy farmers all expect to decrease production over the next year and the NFU has warned that many farm businesses are at risk this year while costs to buy farmed goods will be pushed up for consumers.

The survey of 800 NFU members, that was carried out between November 21 and January 5 about the challenges they are facing and their expectations for the year ahead, was actually predicted to be even worse if it had been conducted now as heavy rain and storms continued to batter the UK through to April.

However, the results that have been released today were part of “the perfect storm of events coming together”, according to Tom Bradshaw, the NFU president.

The conditions have compounded other problems such as increased costs, inflationary pressures, labour shortages and cheaper imports.

Results of the survey suggest that the highest proportion of farmers see the phase-out of the old EU Basic Payment Scheme towards new subsidy schemes as an issue that will negatively impact their businesses in 2024.

Closely following in second was the issue of high input costs like fuel and fertiliser, which ranked highest in last year’s survey.

Meanwhile, concerns over farmgate prices – what farmers are paid for their produce before transport costs – jumped by 10 percentage points this year.

Mr Bradshaw said: “I don’t think anyone can underestimate the impact that this last 18 months of exceptional weather has had.

"Confidence has collapsed after months of devastating flooding, unsustainably high production costs and low market returns, and against a backdrop of reduced farm support as we transition to a new Domestic Agriculture Policy and associated farm support.

“Any business owner knows that without confidence and a steady cash flow, that business will struggle to re-invest and remain viable.”

Office for National Statistics figures show that more than 8,000 farms have been lost between 2019 and 2023 while the NFU survey also found that 65 per cent of farmers said their profits are declining or their business may not survive, compared to 50 per cent who said the same last year.

Experts have recently warned that lower yields from key crops could lead to higher food prices if the losses cannot be offset by imports from a stronger global commodities market.

But Mr Bradshaw argued that relying on imports is “naive at best and foolish at worst” as climate change grows as a risk to food systems globally.

“Britain cannot afford to lose its ability to feed itself,” he added.

With a general election planned for this year, Mr Bradshaw said farmer voters were looking for policies that will underpin profitable food production.

Farming minister Mark Spencer said backing British farmers was at the heart of this Government’s approach.

He said: “Our farmers have faced one of the wettest periods on record in England, and I have seen first-hand the impact this has had.

“The Farming Recovery Fund is offering support to farmers to help recover from uninsurable damage and we are looking at how we can expand the scheme and improve support for those affected.

“I will continue to listen and work with farmers to look at what further support can be offered during this challenging period.”