Poor weather, rash government spending and a volatile world market have hit farmers hard and given them severe reasons to plan ahead, according to environmental consultancy ADAS.

Although world oil prices have dropped recently, farmers have not been able to take advantage of this due to forward buying by suppliers and farmer buying group decisions earlier in the year.

Processors and retailers also face margins being squeezed as the UK heads deeper into recession. The effects are already being felt in farming, with signs of downward pressure on farm gate prices.

ADAS claims it can help farmers and growers understand the implications of the financial downturn on their business and help to review costs of production and input and output prices.

Sustainability and development, according to ADAS, are key any strategy to weather future uncertainties with greater confidence.

Brian Angell, Agriculture and rural advice product leader at ADAS, said: “The change in exchange rates and falling pound against the euro has meant increased Single Farm Payments (SFP) and better prices for exports from UK farms.

“Unfortunately bad weather in the UK earlier has counted against us this year, since grain quality has been poor resulting from the exceptionally wet summer and late harvest means that export standards are hard to meet.

“It will be possible for farmers to fight their way through the recession and drive the farming economy forward. This will require strong nerve and no hesitation in taking advice from key industry bodies,” he said.