The farming industry faces a “real risk” of a plummet in domestic output in the coming year, according to National Farmers’ Union (NFU) president Peter Kendall.
In his New Year message Kendall that while demand for food should remain steady the production of domestic goods could fall rapidly in 2009. “In talking at length to farmers across the country, many of them report some real threats to their businesses," he said.
“The credit squeeze is making a major dent in producers’ confidence in dealing with the high costs of farm inputs like animal feed, fertiliser and diesel.
“I know from my own farm that wheat production could tumble as arable farmers contend with the legacy of poor autumn sowing and growing conditions.
"The horticultural sector is being squeezed remorselessly by the retailers who are continuing to use ruthless methods when dealing with suppliers in order to keep their costs down.
“Last year's wheat harvest was both the biggest and the wettest in memory. Between ten and 15 per cent of land now lies unsown and many crops around the country have failed to grow because of the cool, wet autumn and winter.
“I anticipate that last year's record harvest may be followed by an equally dramatic fall in production during 2009, turning the UK from a net exporter into a break-even position.
“As the UK economy enters a full-blown recession, farming, as the UK's largest primary onshore industry, could be one of the bright sparks, helping to deliver segments of the rural economy from the gloom.
“But that simply won’t happen unless farmers get the recognition they deserve from regulators and retailers,” he said.
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