Half of farms not making sustainable profit

More than half of all farms in North Yorkshire are not making a sustainable profit, a new report has found.

The study also suggested that in a "worst case scenario" ongoing challenges such as policy changes and the climate could see that drop to just a quarter.

York and North Yorkshire Mayor David Skaith, who commissioned the report, said rural areas as a whole had struggled with a lack of investment that "farmers faced the brunt of".

"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," he said.

"We haven't been building the affordable homes they need, they don't have the transport connectivity they need and we haven't been aligning our skills agenda and strategy to the next generation of people to stay in our region.

"Having that whole view strategy is how we'll drive investment into the farming sector."

Currently 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 also highlighted the increasing impact of climate change on farmers.

While the effects vary widely between farm types, in recent years, wet winters and dry summers impacted the overall output of farms.

If the trend continued, the report calculated that farms may see a 20% reduction in output, which could heavily affect annual profits of £387m.

Richard Pears, West Riding chair of the National Farming Union's (NFU) said he welcomed the mayor's report.

He said: "It's about supporting rural business and that's clearly what the aim of this report is.

"We produce great food in Yorkshire and we want to see that put into school meals and that's maybe something [the mayor] could have a hand in shaping."

William Maughan, NFU regional board chairman took a pragmatic approach to the future of farming.

"It makes very sobering reading, those figures, and they don't take full account of the challenges coming towards us. But you have to take a positive from it," he said.

"I think you can't get away from the fact there's a growing population in the UK and around the world that all need feeding.

"Change is inevitable and there's always been challenges in food production but we've got to focus on the positives for the younger people."

The report called on York and North Yorkshire Combined Authority to support farmers through a variety of recommendations.

These included exploring further devolution around food and farming programmes, and helping farmers transition to farming systems that are profitable, low carbon and support nature.

NFU president Tom Bradshaw said that there had been a "political cloud hanging over the industry" since the Autumn Budget was announced last year.

"I think for farming, the confidence of the industry is we need to rebuild it so we can invest, and deliver the food production that everyone is so proud of," he said.

Speaking at the Great Yorkshire Show, farming minister Daniel Zeichner said the government remained "steadfast" in its commitment to farming and food security.

"We've allocated a record £11.8bn to sustainable farming and food production over this parliament," he said.

"We're supporting farmers facing extreme weather by investing a record £8bn into flood defences to protect homes and farms, as well as working with farmers through the Flood Resilience Taskforce and National Drought Group."

Skaith added that he felt the financial outlook of farms could improve with the right support.

"Despite the challenges, there are also opportunities," he said.

"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."

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