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TFA National Chairman Greg Bliss said “Against the backdrop of a poor harvest in the arable sector and an unfavourable forage harvest for the livestock sector, the financial resilience of even the best run farm businesses has been severely undermined. The much talked about increase in farm output prices has been more than assuaged by the spiralling costs faced by farmers.”

In comparison to 10 years ago cereal prices have increased by around 50 per cent, beef prices by around 80 per cent, lamb prices by 40 per cent and milk has stayed about the same. However, in comparison, fertiliser costs have increased by over 600%, diesel for running farm machinery by over 650%, cattle feed by 90% and labour costs by around 70 per cent. Farmers are having to increase their overdraft limits in order to bridge the gap that has been created and to be able to finance next year's harvest.

“There is also now pressure from landlords of tenant farmers for rent increases following rent review notices sent to tenants by landlords last year. These reviews are due to be settled this month or next. In the light of the poor harvest and the cost/price squeeze being faced by farmers a significant number of landlords are agreeing to allow current rents to remain the same for the time being. Whilst the TFA is extremely grateful for the reasonable stance these landlords are taking, we continue to be concerned about a significant minority of landlords with over-keen agents who are asking for new rents to be set far in excess of current levels. It is our view that such increases are unjustified and display a real lack of understanding of the economics of farming amongst the landlords and agents involved," said Mr Bliss.

“There are real messages too for Government in terms of ensuring long-term food security - a policy to which the Government has merely played lip service in recent times. However, in a world where we are expecting twice as many people to be living on the planet in only 40 years time and were we will need at least double the current level of production in 20 years time, the Government should be taking an interest in the future sustainability of our food production capacity. Farmers need fair prices and lower costs if they are going to survive. The sad truth is that the financial pressures are causing many to leave farming and we are not attracting the new entrants that we need to retain vital skills for the future. Applied research has decreased to alarmingly low levels whereas once we were a leading country for food and agricultural research. The UK Government must abandon its current ‘politically correct’ policy of non intervention before it is too late," said Mr Bliss.

The Tenant Farmers Association is the only organisation dedicated to the agricultural tenanted sector and is the authentic voice of tenant farmers. The TFA lobbies at all levels of Government and gives expert advice to members.

FARMERS FACING UNSUSTAINABLE COST INCREASES