Farmers warn they may struggle to plant next year's crops

Farmers could struggle to plant next year’s crops after drought, disease and rising costs pushed businesses to crisis point, industry leaders have warned.

Farming organisations say the worst drought in 50 years has hit harvests, grass growth and field crops, while higher fuel, fertiliser and energy costs have added further pressure.

NFU analysis estimates the gross production value lost from this year’s historically low wheat harvest at around £370 million.

The organisation also estimates that below-normal growth on temporary grassland has created a potential forage shortfall of about 196,300 tonnes of dry matter so far this year. Replacing that lost forage could cost around £34 million.

The impact is already being felt on individual farms. NFU President Tom Bradshaw said one Buckinghamshire grower was £220,000 down on their usual harvest, while a Dorset dairy farmer was spending an extra £500 a day on fodder.

“We’re hearing daily about the cashflow crisis facing farmers,” he said.

“Whether it’s the grower in Buckinghamshire who’s down £220,000 on their usual harvest, or the dairy farmer in Dorset spending an extra £500 a day on fodder to feed their cows, the balance sheets are not adding up.”

Higher input costs are adding to the strain. NFU analysis estimates the national nitrogen fertiliser bill has risen by around £303 million a year, while the red diesel bill has increased by approximately £200 million.

Livestock businesses are also contending with bluetongue, with farmers facing the cost of replacing animals and disposing of fallen stock. Replacing 30 breeding ewes at an indicative £275 each would cost about £8,250 before wider production losses are considered.

Mr Bradshaw said recent Defra commitments to improve water resilience were welcome, but warned they would not solve the immediate financial problem.

“Farmers face an immediate crisis in cashflow and confidence,” he said. “Rain has come too late for lost harvests and slashed yields, while livestock farmers are dealing with the worst bluetongue outbreak to reach our shores.”

He added that some farmers were worried they would not have enough money available to plant next year’s crops or replace livestock lost to the disease.

Farming organisations are now calling for a government-backed, interest-free Keep Britain Growing Loan linked to drought losses, which they say would provide businesses with the working capital needed to produce next year’s food.

They are also seeking urgent support with fallen stock collection and disposal costs for livestock farmers affected by bluetongue.

The calls follow a meeting with the prime minister on a farm in Cornwall. According to Mr Bradshaw, the prime minister described recent commitments as a “first start” and said there was “more to come”.

A broad group of farming, livestock, horticulture and landowner organisations from across the UK has since come together to press for immediate support and longer-term measures to protect domestic food production.

Mr Bradshaw said farmers in England were now more exposed to weather extremes, animal disease and wider economic shocks following the reduction of the direct payment support that previously provided a financial buffer.

Alongside emergency financial help, industry groups want further action on water resilience, including more flexible abstraction arrangements during droughts and better protection for farm businesses that rely on secure water supplies.

They are also pressing for measures to make on-farm reservoirs easier to build, greater certainty around abstraction licences and more investment in climate adaptation and drought-resistant crops.

The government has already announced Environment Agency support and simpler water-access arrangements during droughts, as well as plans to make it easier to develop on-farm reservoirs, but farming groups say more detail is needed on how those commitments will work in practice.

Mr Bradshaw said urgent action was needed to give farmers enough confidence and working capital to prepare for the next production cycle.

“Action is needed now to secure the future of British farming and enable the next generation to keep producing the nation’s food,” he said.

“We will continue working with government to help farmers withstand this crisis and deliver on its commitment that food security is national security.”