Scorching summers cost UK farming sector £4.8 billion
A new analysis of harvest losses after the recent scorching summers suggests nearly £5 billion was wiped from the British farming industry between 2024 and 2026.
The unprecedented warm weather has led to more problems for farmers, with 2026’s extreme heat and drought projected to lead to the worst harvest on record.
When compared to the 2013 to 2023 ten-year average, the deficit in production of wheat, barley, oats and rapeseed from 2024 to 2026 will amount to a colossal 14.4 million tonnes.
Is extreme weather the new norm?
Extreme weather events linked to climate change, like the 2026 summer, are making lacklustre harvests more common.
Climate experts have underscored that yields are not likely to settle down to a lower baseline, as severe weather swings will only continue to grow in intensity.
With four of the five worst harvests on record occurring in the last six years, it is no surprise many farmers are looking for ways to adapt.
What measures are being taken?
To square up to the climate pressures, farmers are altering their agricultural techniques and utilising new technologies to counteract the erratic weather.
In response to the elevated risk of droughts, some farmers are using huge rain reservoirs to lessen their reliance on seasonal downpours.
Earth basins capture heavy flood water that would normally wash over fields and drain into rivers, which is then pumped over fields.
When summer heatwaves arise, farmers can irrigate high value crops without having to rely on mains water, which can strain local reserves.
Elsewhere, farmers are planting cover crops, like clover and rye, to keep roots in the ground after a harvest, instead of disturbing the soil with ploughing.
Over time, decaying plants can increase soil matter.
For every one per cent increase in organic matter, the soil can hold an extra 200,000 litres per hectare, which can keep crops flourishing during a drought.
Aside from practical methods to deal with drought, farmers are partnering with agricultural scientists to bring back old wheat varieties that are better suited to warmer weather.
While modern crops were selectively bred to produce massive yields under regulated conditions, some old varieties can better tolerate continual shifts between waterlogging and extreme heat.
Speak to an accountant
Though farmers are taking practical steps to manage the extreme weather, accountants can help with the financial fallout.
Our specialists can average out fluctuating profits with poor harvests, which can prevent large tax bills arriving without the harvest income.
If you are considering specialised irrigation systems or rain reservoirs, we can help you budget effectively and advise whether it is a worthwhile investment.
We can also help you save money elsewhere, like making sure Capital Allowances are used, ensuring large capital investments are 100 per cent deducted from business profits.
Feeling the squeeze of the poor harvest? Speak to our accountants for guidance.