Farmer confidence has nosedived to just one per cent in the past year, a new index has claimed.
Countryside businesses are facing a significant drop in investment, according to the Q2 report from the CLA/Smiths Gore Rural Economy Index (REI).
The REI claims confidence among the farming sector for the next 12 months has fallen from 26 per cent in 2011 to just one per cent, a 25 per cent drop.
“These second quarter findings clearly highlight how damaged the rural economy is becoming, due to low confidence and investment," said CLA deputy president Henry Robinson.
He added: “The eurozone crisis, higher input costs, slow or no broadband and weak consumer confidence are some of the factors hitting confidence in trading conditions with the inability to secure capital funding the main reason for lack of investment.
“The government must strive to reduce red tape, relax planning rules and improve access to broadband if the rural economy is to recover.”
No comments yet