Welcome to the October edition of Agribusiness News. If you prefer to download this document then click the download button.
News in brief
Cost-of-living crisis dominates markets
Twelve months ago, net zero and biodiversity were at the forefront of the political and economic discussion around the future of post-Brexit British farming. How much can change in 12 months. With a mix of soaring gas and fuel prices, war in Ukraine having ripple effects on inputs and food prices, and the predicted post-Covid recession closing in, food security is top on the agenda. The issue is now even closer to home, the cost-of-living crisis is having direct impacts on household and business purses.
This creates an even more challenging environment than expected for policy development, throwing a whole new set of unprecedented factors into the mix. Governments must now juggle sometimes competing priorities of climate change, food security, nutrition, biodiversity, support for British farming, quality food and affordability of food, within the new era of farming support. Scottish Government is currently holding a consultation on the proposed Agricultural Bill, online and via live events, open until the 21st November. Take the opportunity to have your say if you can.
Meanwhile, the fall in the value of sterling following Downing Street’s recent mini-budget announcements has pros and cons for UK farmers. A weak pound makes British products more attractive to foreign buyers, and falling at the biggest period of income in the year for many farmers, producers of export products such as cheese, beef, lamb and pork may do quite well. On the downside, buying in imported inputs will now cost you more, and products like fertiliser, often bought on credit, will face uncertain and variable interest rates. Now is a good time to be assessing cashflow forecasts, and attempt to reduce risk on overdrafts, loans and purchase agreements.
- Financial planning
- Forestry & woodland update
This month’s editor: Anna Sellars