The results of recent surveys suggest that many farmers in England may struggle to cope with the challenges of new agricultural policies and the withdrawal of the Basic Payment Scheme (BPS).
According to the National Innovation Centre for Rural Enterprise (NICRE), more than six out of 10 farms do not have a formal, written business plan and more than 80 per cent of respondents said they had not accessed external support from any advisory service.
The survey revealed that regulations and red tape were the most commonly-cited obstacles to success, with 71 farms of farms identifying them as a key concern, compared to less than half of other rural businesses.
A spokeswoman for NICRE said that the survey results showed that careful medium-term planning, and building in the headroom to innovate, remain essential tactics for farms’ survival just as much as for other rural businesses
She added that the body’s research shows that farms are less likely than other rural businesses to engage in formal business planning and seek advice though, which highlights a potential future risk, as farms position themselves to cope with the ongoing transition process and slow roll-out of the new schemes.
This is very worrying, as a separate survey conducted by Farmers’ Weekly showed that some 36 per cent of farm income relies on the BPS payment and yet one in three farmers are yet to start preparing for the withdrawal of the BPS.
The surveys’ results suggest that farmers need to explore ways to make their businesses more efficient and/or to diversify and see if they can create alternative revenue.
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