A third of British farmers are making a loss or breaking even, according to a new report on post-Brexit farming. The inaugural Farmdex report by McCain Foods found that only 14% of farmers surveyed achieved a profit margin of 10% or more in the past year, while 35% reported making a loss or no profit at all.
The financial struggles affect even high-value farms, with 28% of those valued at £2.5m or more also reporting losses or no profit. The loss of EU subsidies, which previously accounted for up to half of farmers' annual income, has been a major factor. Since Brexit, England has replaced automatic payments with the environmental land management scheme (Elm), which pays farmers for environmental stewardship but offers less money and has been plagued by delays and unpredictability.
The government's recent £100m cut to England's farming budget and the introduction of inheritance tax on farms worth over £1m have added to the strain. The National Farmers' Union found that upland farming businesses lost an average of 37% of support payments under the new Sustainable Farming Incentive and Countryside Stewardship schemes.
Farmers are also facing extreme weather events linked to climate change, including floods and droughts that have led to poor harvests. The report reveals that 51% of farmers have considered leaving the industry in the past year due to financial pressure, and only 4% believe current government support is adequate. Over 61% say their work negatively affects their mental health, and more than a third work over 70 hours per week during peak seasons.
James Young, vice-president of agriculture at McCain GB&I, called the findings a 'wake-up call' and urged industry bodies, government, and businesses to take action. A Department for Environment, Food and Rural Affairs spokesperson acknowledged challenges in the sector, including weather impacts, and said the government is backing farmers with the largest nature-friendly budget in history to support growth and food security.
