Survey reveals a third of farmers made no profit last year
By Andrew Heskin, Partner, and ARA specialist
It is an extremely challenging period for farmers financially at the moment and this has been highlighted in a recent survey, which found that over a third of farmers didn’t make any profit last year.
It’s a big concern for a sector struggling as farmers try to find solutions while managing a delicate financial situation with several factors attributed to the current financial challenges.
What are the key takeaways from the survey?
In a survey of 200 farmers conducted by McCain Foods as part of its very first Farmdex Report highlighted that 35 per cent of farmers recorded no profit in the last year, either operating at a loss or breaking even.
The highest value farms are also feeling the effects of the current challenges, with 28 per cent of owners whose farm is valued at £2.5 million or more also reporting a loss or no profit in the last year.
Only 14 per cent of farmers surveyed said they made 10 per cent or more profit in the last year, which highlights just how concerning the current agricultural economic climate is.
As well as offering insight into farm finances, the survey also offered information as to what farmers believe are contributing factors to the industry’s current struggles.
72 per cent said increased input costs were the biggest financial challenge, meaning farmers have been spending more on items such as animal feed, fertilisers and fuels.
Another contributing factor to the financial pressures on farmers is Inheritance Tax (IHT), with 54 per cent of farmers expressing this as a major reason.
With reform to the Agricultural Property Relief (APR) and Business Property Relief (BPR) to take effect in April 2026, some farmers are concerned about their IHT liabilities, increasing the financial strain and affecting their succession plans.
As well as the impact of IHT and input costs, it’s important to highlight that the extreme weather in the UK has played its part. The warmer temperatures have impacted grass growth, livestock and crops.
Both 2024 and 2025 are amongst the worst harvests on record in England, which has severely impacted the crop quality.
McCain’s survey has painted a clear picture of the current state of the farming sector is in. It’s a big concern, especially when 61 per cent said the financial pressures have affected their mental health.
It’s even more worrying when 51 per cent considered leaving farming altogether because of the financial challenges and pressures.
Help is available to support farmers
Help is available for farmers who want to get on top of their finances. We know it’s not an easy time, but our dedicated team of accountants is here to support you.
We offer comprehensive financial advice and support to help you confidently manage any financial challenges and build a clear picture of your farm’s overall finances.
We will tailor the advice to the needs of your farm and give you the tools to put measures in place to ease your challenges and have some peace of mind.
For expert advice and support for all financial concerns, contact us today.