Sowing The Seeds Of A Future Harvest

University of Cambridge tracks changes in future of farming in the Eastern Counties

Research on farming in the Eastern Counties of England 2002/2003 by the University of Cambridge points to changes in the future of farming, showing growth in machine investment by large arable farms, despite the hard business conditions of agriculture.

?Report on Farming in the Eastern Counties 2002/2003? is an independent report, compiled by the University of Cambridge's Department of Land Economy, that provides a comprehensive guide to the economics of agriculture in East Anglia and South Lincolnshire. It includes results from detailed analysis of the physical and financial performance of 320 farm businesses participating in the Farm Business Survey.

The report found arable businesses of over 400 hectares (1000 acres) bought three times more tractors and combine harvesters during 2002 and early 2003 than in the four preceding years. Much of this investment was made before cereal prices improved later in 2003.

With an average machinery investment of over £110,000 per farm, these businesses showed considerable confidence in the future.

However, smaller farms did not make the same level of investment. This is the first time, in decades of measurement of farm incomes in the Eastern counties, that such a difference in the investment practices of farms of different sizes occurred.

Ben Lang, Rural Business Unit, Department of Land Economy, University of Cambridge, said:

"Our observations suggest that farm expansion will accelerate over the next few years as some of the larger businesses continue to reduce their production costs. The result of this is a competitive agricultural industry but further reductions in the number of people employed in agriculture."