30-07-2014 02:44 AM | Arable, Cereal, Crops, Finance, News

Investment in rural economy to rise as UK sees positive growth



Investment in rural economy to rise as UK sees positive growth
Employment and investment will rise next year as the rural economy continues to benefit from a more positive UK economy, according to a survey by the CLA and Smiths Gore.

Data from the Rural Economy Index for the first half of 2014 shows more farming and non-agricultural businesses expecting to increase investment in the next 12 months.

For agricultural businesses, optimism is up six percent reaching a net balance of +42 percent - the highest high since the survey started – as the farming sector continues to recover from its dip in 2012. More farming businesses expect to invest further in their businesses – a net balance of +36 percent, up from six percent.

Non-agricultural businesses have also become more positive about business investments, with a net balance of +46 percent expecting higher investment in the next 12 months, again the highest level recorded by the REI.


CLA President Henry Robinson said: “Investment is vital if the rural economy is to continue to grow and recover. It is a major boost that the survey shows investment is expected to rise in both the farming sector and non-farming businesses.”

Dr Jason Beedell, head of research at Smiths Gore said: “Farming businesses continue to recover from a challenging 2012, and the balance now expect sales and profits to be higher in the next year.

“Just under 40 percent of the non-agricultural rural businesses reported higher sales over the past six months and 58 percent expect sales growth next year - fantastic news for the rural economy as a whole.”

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