What is the State of the Farming Industry in Northern Devon? - Tim Jones

The agricultural industry has for many years been a crucial element of both the North Devon economy and the fabric which supports our rural communities.

It is literally a lifebelt for many of our rural areas. During Foot & Mouth, we learnt how fragile the rural economy is when farming businesses were disrupted.

From this, we found that every farm supports or engages with around 25 other businesses. If we look at the number of farms we have, which is around 5,000, then it is easy to see how important this sector is for the future.

A proper debate about creating a long term future for this industry has proved difficult. There have been too many changes in Whitehall. Too many reports have been written which now sit on dusty shelves.

There is no doubt that George Eustice had a grip on this agenda. His successors demonstrate a lower level of forward thinking and certainly less understanding about the day to day issues farmers are wrestling with.

The press has been focusing almost entirely on the price of food. This is a huge issue which is stoking inflation. The latest index of food prices shows that for June the annual food inflation rate was at 14.6%. This has dropped from the March figure of 19.1% which was a 30 year high.

This inflation issue has clouded the problems at the farm gate. It would be easy to assume that farmers are making increased profits from their produce, particularly as some of the steepest price increases are in the fresh products sector including milk, cheese and eggs. The reality however is that farm profitability remains highly vulnerable.

If we start looking at some of the recent evidence, then all the indications are that this industry is in a very serious state. The method of supporting farmers through direct financial payments has just changed. The previous system of Basic Farm Payments has now disappeared.

It has been replaced by the Sustainable Farm Incentive Scheme. This essentially is a programme targeting environmental improvements rather than supporting frontline farming activities. It is unsurprising therefore that spokespersons for this industry are increasingly gloomy. It is also a sad inditement of UK policy that within a few years we, as a nation, will not be self-supporting in food production and will be relying upon food imports.

An analysis of some of the evidence which charts this decline makes uncomfortable reading. The number of self employed farmers had already started dropping pre Brexit and pre Covid, from 138,000 in 2019 to 109,000 in 2020 – a decrease of over 21%. Also, in 2020, Wheat harvest dropped by over 37%. Barley harvest remained about the same as did horticulture. The current figures also show that 12% of our dairy farmers are considering leaving this market.

It is relatively easy to spot the reasons behind these huge problems. In the dairy industry, for example, over 55% said that they had huge problems in sourcing staff. These problems were significantly less serious pre-Brexit and pre-covid. The government have belatedly increased the visa allowance for certain industries including farming, horticulture and specialist activities such as flower picking.

This has only marginally improved the situation on the ground. It has also meant that pay has increased, currently the estimate of this is around 22% increase on average since 2019. There is a 60% estimate that these wage pressures will continue over the next 12 months. The implications of this in terms of food prices is obvious.

In addition to chronic labour shortages, there has been a major avian influenza outbreak. This has huge implications for the poultry industry. Other intensive farming areas, such as pig production or horticulture, have also been impacted by high energy costs.

If this was not enough, it is also now estimated that climate change and biodiversity loss are the biggest risks to UK food production, alongside other facts such as soil, degradation and water quality. We have begun to see how this climate change issue is playing out with our weather patterns. We have had one of the hottest and driest last few months on record. Water is an essential part of any successful farming business.

The industry uses around 70% of all fresh water around the world. It takes around 600 litres of water a day to clean a parlour. The average dairy cow drinks around 100 litres per day. These changing weather and rainfall patterns increase the water loss through evaporation and reduce the availability of water for irrigation and other essential functions. These drier soil conditions also reduce the growth of crops, pastures and trees..

This is a rather depressing summary but explains why many youngsters are not seeking to inherit the family farm. Many do not have a succession plan. Many are being forced to consider selling out. Invariably, this is to institutional or non-farming buyers who are attracted by the grants available for planting trees and the returns that can be generated through capturing carbon.

So is there any light at the end of this tunnel? Of course. Now that our brilliant scientists have focused in on these problems, they are beginning to find solutions. Exeter University is one of the most accomplished land based research bodies. They are coming up with new solutions every day.

We should also be looking to the world of artificial intelligence. One of North Devon’s most prolific dairy farmers has invested in milking robots. New technologies, including drones, are providing far more accurate intelligence about precision farming and the way in which farm production can be improved. This article is very much the first chapter