Report finds half of North Yorkshire’s farms not profitable
The research, launched as the Great Yorkshire Show opened in Harrogate, was commissioned by the county’s mayor David Skaith.
It shows the current financial outlook of farms in the county, and makes recommendations on how this can be improved and what support could be provided for farmers.
The Great Yorkshire Show got underway in Harrogate today (Image: SARAH CALDECOTT)
Less than half of the 7,000 commercial farms in the county make sustainable profits, with many relying on income generated off-farm, the report found.
It details how the effects of a succession of policy changes look set to have a significant impact on farmers. These changes could reduce the number of farms that make sustainable profits down from half to around a quarter in a worst-case scenario.
Labour mayor Mr Skaith said: “In the uncertain world we find ourselves in, it is more important than ever to support the farmers who feed our nation. Food security is a crucial part of our national security, but only half of our farmers make sustainable profits.
“When our farmers stop making money, they aren’t the only ones who suffer. Our rural economy, from feed merchants and vets to local shops, schools and pubs, all struggle.
“Despite the challenges, there are also opportunities. With the right support, designed with farmers, we can improve the financial outlook of farms. There’s brilliant work already happening in our region – from local food projects to sustainability programmes, and tailored support for farm businesses, but we must do more.
(Image: Newsquest)
“My message is simple: farming matters. We’re backing our farmers – because when they thrive, so does the nation.”
Mr Skaith launched the report at the Great Yorkshire Show, where tens of thousands of visitors turned out in bright sunshine for the first day of the four-day event. Appearing at an NFU press conference where the current challenges for the industry were discussed, Mr Skaith was asked for his views on the Labour government’s controversial inheritance tax policy, but said he was focused on matters under his control.
The farm finances report also highlighted the increasing impact of climate change on the industry. While the effects vary widely between farm types, in recent years wet winters and dry summers have had a major impact on the output of farms.
Following those trends, the report calculated that farms may see a 20 per cent reduction in output, which would effectively wipe out all the current annual profits of £387m.
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Strutt and Parker carried out the report by analysing government figures and surveying farmers.
It was steered by members of the Grow Yorkshire partnership, including the NFU, CLA, Yorkshire Agricultural Society, a representative from the Protected Landscapes (National Parks and National Landscapes) and the Landscape Enterprise Network, North Yorkshire Council and York and North Yorkshire Combined Authority.
Some of the recommendations include sharing farming best practice, exploring further devolution around food and farming programmes, and helping farmers transition to farming systems that are profitable, low carbon and support nature.