More than half of all farms in York and North Yorkshire aren’t making a sustainable profit, according to a report commissioned by Mayor David Skaith.
The new report, launched today on the first day of the Great Yorkshire Show in Harrogate, sets out the current picture and how it could look in a few years, following different scenarios.
It also highlights recommendations on how the financial outlook of farms can be improved and what support could be provided for farmers.
Currently less than half of the 7,000 commercial farms in the region make sustainable profits, with many relying on income generated off-farm.
It details how the effects of a succession of policy changes look set to have a significant impact on farmers. These changes could reduce the number of farms that make sustainable profits down from half to around a quarter in a worst-case scenario.
David Skaith, Mayor of York and North Yorkshire, said:
“In the uncertain world we find ourselves in, it is more important than ever to support the farmers who feed our nation. Food security is a crucial part of our national security, but only half of our farmers make sustainable profits.
“When our farmers stop making money, they aren’t the only ones who suffer. Our rural economy, from feed merchants and vets to local shops, schools and pubs, all struggle.
“Despite the challenges, there are also opportunities. With the right support, designed with farmers, we can improve the financial outlook of farms. There’s brilliant work already happening in our region – from local food projects to sustainability programmes, and tailored support for farm businesses, but we must do more.
“My message is simple: farming matters. We’re backing our farmers – because when they thrive, so does the nation.”
The report also highlighted the increasing impact of climate change on farmers. While the effects vary widely between farm types, in recent years wet winters and dry summers have had a major impact on the output of farms.
Following those trends, the report calculated that farms may see a 20% reduction in output, which would effectively wipe out all the current annual profits of £387m.
Strutt and Parker carried out the report by analysing government figures and surveying farmers. It was steered by members of the Grow Yorkshire partnership, including the NFU, CLA, Yorkshire Agricultural Society, a representative from the Protected Landscapes (National Parks and National Landscapes) and the Landscape Enterprise Network, North Yorkshire Council and York and North Yorkshire Combined Authority.
The study calls on York and North Yorkshire Combined Authority to support farmers to embrace change and build resilience.
Some of the recommendations include sharing best practice on farming, exploring further devolution around food and farming programmes, and helping farmers transition to farming systems that are profitable, low carbon and support nature.
Review of the state of farming finance and challenges faced is available in full here
