Farmland continues to be an attractive investment for many
The UK’s farming sector saw its overall profit rise by 25% last year, according to the National Farmers Union (NFU). The NFU said farming’s overall profit was £8.84bn in 2011, up £1.75bn.
Rising prices for meat and grain on the international markets have helped to boost farmers’ income. On Monday, US wheat prices hit a seven-month high in trading in Sydney. Last week, wheat prices had risen by 17% as hot, dry weather hit the southern plains of the US. “With stocks depleted and demand from emerging markets rising all the time, supply and demand have been on a knife edge, with just small changes in supply prospects causing big swings in prices,” the NFU said.
The report highlights the contribution made by British farmers to the UK economy. “Together, farming and food make up a precious oasis of growth and potential at a time when the economy generally is struggling,” the report says. Food exports grew by 11% last year, which makes food and drink the fourth largest export sector for the UK, according to the NFU.
NFU President Peter Kendall launched the report on Monday 21 May, having witnessed the huge change in farming’s fortunes in the past decade.
“I don’t want to dwell on the past; today is about celebrating all that farmers and growers deliver to this country and its people every day,” said Mr Kendall. “But I do want to acknowledge what a tremendous turn around we have seen, certainly in the past ten years. The NFU has re-stated and, over time, re-established the case for our productive farming industry. No-one now seriously doubts the need for this country to have an efficient, productive, environmentally-conscious British farming sector, or the value that it, and we as farmers and growers, can deliver on all fronts.
“As this report details, farming is now expected to deliver and not just on fresh, quality, affordable food but also in providing cleaner, green energy and exciting and dynamic careers for our young people, while not forgetting the other staples of British farming; world-leading standards of animal welfare and environmental enhancement and protection.
Employment has also been growing in the agricultural sector. According to the most recent government figures, agriculture employed 303,000 people in 2011, up 3% on 2010. The NFU uses gross value added (GVA) to measure farming’s contribution to the economy. GVA is the value of goods and services produced by a sector minus the raw materials and other inputs used to produce them.
Speaking about the new campaign, Defra farming minister Jim Paice, said: “Farming is no longer the quaint old industry which has served Britain well in the past but is doing so much more today,” he said. “Now farmers are using techniques and technology we couldn’t have dreamed of 50 years ago and in this new rapidly-growing global food market they face huge opportunities to deliver real wealth for our economy.
“Government and industry have got to work together to build on the strengths show-cased today, to see farming become as efficient and forward-looking as possible so it can meet the huge food production challenge ahead.”
Original Article : BBC News