Farmers call for 'fair and balanced' National Living Wage increase amid uncertainty

Some in the horticulture sector reported a negative impact on profits as a result of the recent increase of the NLW
Some in the horticulture sector reported a negative impact on profits as a result of the recent increase of the NLW

Any increase in the National Living Wage must be "fair and balanced" due to the high levels of uncertainty the farming industry is facing, the NFU has said.

The Low Pay Commission, an independent body that advises the government about the National Living Wage and the National Minimum Wage, took evidence from the farming union today (19 July).

The NFU reiterated the need for any decisions to be "mindful of the challenges" involved in farming.

While the union said it supports the principle of the National Living Wage, there is concerns within the industry that the speed of implementation and increases in the rate make it challenging for businesses to remain competitive.

New statistics show that 68% of respondents in the horticulture sector reported a negative impact on profits as a result of the recent increase of the National Living Wage.

And 72% of respondents in the horticulture sector expected the recent increase of the NLW to £7.83 to have some impact on their farm business.

When asked about a potential increase of the NLW to £8.20, 74% of horticultural businesses, 45% of poultry businesses and 43% of other farm types said they would be impacted.

'Volatility'

NFU President, Minette Batters said the Low Pay Commission must recognise the role of farmers as food producers, and be "mindful of the volatility they face on a daily basis".

“The recent weather events, combined with the weakness of the pound, have led to increases in farm input costs,” Ms Batters said.

“It is likely these cost pressures will continue for the remainder of the year, at a time when some parts of agriculture are already experiencing lower farm gate prices.

“The NFU’s vision for farming is a sector that is productive, profitable and progressive, all while continuing to produce food for the nation and taking care of our countryside.”

Central to that is farmer confidence, the NFU said. Against a backdrop of increased uncertainty, statistics show that mid-term confidence has hit an all-time low since the survey began eight years ago.

Almost twice as many farmers are intending to reduce investment rather than increasing investment due to uncertainty associated with Brexit.

The evidence to the Low Pay Commission took place today (19 July) alongside the Association for Labour Providers.