A new agricultural sector survey reveals confidence amongst farmers at all-time low in 2016.
Hit by economic down turn, a collapse in oil prices, soaring input costs and the Russian export ban, confidence amongst farmers is at an all-time low, new results from agricultural co-operative Copa & Cogeca's survey in the first quarter of 2016 shows.
Copa & Cogeca Secretary-General Pekka Pesonen said: "Our agricultural barometer confirms that European farmers are really feeling the pressure.
"They are being squeezed by low farm gate prices and high input costs.
"Prices for most agricultural commodities have fallen over the past year, and no significant price recovery is in sight.
"Due to the highly volatile marketplace, the Russian ban on EU farm exports as well as the collapse in oil prices which has put downward pressure on commodity prices and an unpredictability in Chinese demand leading to further volatility, farmers remain pessimistic about their short-term and long-term prospects."
Lowest level for UK farmers in 6 years
Farmers’ confidence in the United Kingdom is at its lowest level in 6 years.
Short-term and midterm confidence are both negative and below the levels recorded in 2012, a disastrous year for UK agriculture.
Falling farm gate prices and market price volatility have contributed to a drop in farmer confidence.
In terms of expectations for the future, farmers believe that regulation and legislation, CAP reform, output prices and input prices may have a negative impact on their business.
In 2016 Q1, the national confidence index fell from +9 to -14. All sectors are less confident in the short-term than they were 6 months ago.
The arable, horticultural and mixed sectors are those that have suffered the most from the decline in confidence.
Mid-term confidence has also decreased across all sectors compared to 6 months ago, the only exception being the poultry sector.
Only the Danes and Swedes remain optimistic
The survey was carried out in the first quarter of 2016.
It is carried out twice a year in eleven countries and over 8000 farmers were interviewed.
In 9 of the 11 EU Member States (Belgium - Flanders, Germany, France, Italy, Hungary, the Netherlands, Poland, Romania, United Kingdom) farmers confidence about the current and future situation had fallen, the survey found.
Concerns about implementation of the Common Agricultural Policy (CAP) and red tape also caused many difficulties for farmers and growers.
Only 2 of the 11 Member States – Denmark and Sweden - were more optimistic about the current and future situation.
"I consequently urge the EU Commission and Farm Ministers to take action when they meet at the end of June.
"Additional support is crucial and new markets for our quality produce must be found.
"I also urge negotiators to find ways to establish normal political and trading relations with Russia when Commission President Juncker & Russian President Putin meet in the margins of the St Petersburg economic forum," Pesonen said.
