NFU President Tom Bradshaw says the budget must help pull farm businesses out of “survival mode”
Farmers struggling with drought, disease and rising costs need an autumn budget that cuts food production costs and rebuilds confidence, the NFU has warned.
In its submission to the Treasury ahead of the budget on 28 October, the union is calling for measures to strengthen farm businesses, encourage investment and improve Britain’s food security.
The NFU said drought, disease outbreaks and geopolitical instability had weakened the resilience of farms and domestic food production, arguing that investment in farming should be viewed as an investment in national resilience.
NFU president Tom Bradshaw said: “The government has recognised that food security is national security. We now need the economic policies and investment to back that up.”
At the centre of the submission are five measures aimed at reducing pressure on businesses and encouraging longer-term investment.
The NFU wants the Annual Investment Allowance increased to at least ÂŁ5 million and its scope widened to support investment in productivity, energy efficiency and water management.
It is also calling for temporary interest-free Keep Britain Growing Loans to help businesses hit hardest by this summer’s conditions continue producing food next year.
Further proposals include ensuring the Carbon Border Adjustment Mechanism does not put domestic food producers at a disadvantage to imports, and introducing enhanced capital allowances for incorporated and unincorporated businesses investing in low-carbon technology and infrastructure.
The union also wants changes to Agricultural Property Relief and Business Property Relief removed, arguing that farm businesses need greater confidence to invest, expand and plan for succession.
Bradshaw said the past year had put severe pressure on businesses across the industry.
“For farmers and growers, this year has been bleak,” he said.
“Rising production costs due to global conflicts, the worst drought in 50 years and the largest ever bluetongue outbreak have pushed many farm businesses to the brink. No sector has been left unscathed, confidence is low and investment has suffered.”
The NFU argues that stronger domestic food production could make the country more resilient to future economic and climatic disruption, while helping maintain a secure and affordable food supply.
“While we can’t control global volatility, we can take control of our food system here at home,” Bradshaw said. “The challenges facing farmers are neither inevitable nor irreversible.”
The union has also raised concerns about the longer-term direction of British food production, citing its own research which found the country is producing less food than it was 30 years ago.
According to the NFU, farming underpins the UK’s food and drink sector, which it says is worth £162.3 billion and supports 4.1 million jobs.
Bradshaw said resilient farm businesses should be treated as a strategic asset because of their role in producing food and helping households withstand future shocks.
“The budget must be relentlessly focused on reducing the cost of producing food in Britain,” he said.
“For some businesses, this is about immediate survival and their ability to produce food next year. For others, it is about unlocking investment, building resilience and reversing the long-term decline in domestic food production.”
The NFU said succession was another major concern, with farming families needing confidence that businesses could be passed to the next generation.
Its five budget priorities will form a central part of the union’s engagement with ministers, policymakers and party members at the Labour Party Conference.
Bradshaw urged the government to use the budget to move farm businesses away from short-term survival and towards renewed investment.
“I urge the government to use this budget to pull farms out of survival mode, restore confidence and provide the foundations we need to produce high-quality, affordable food, whatever lies ahead.”