According to the UK’s largest manufacturer of frozen potatoes McCain, half (50%) of UK farmers have reconsidered their future in the sector due to a rise in financial pressures in the last year.
A survey of arable farming decision makers commissioned by McCain revealed that rising energy (35%) and fertiliser costs (32%), as well as environmental threats (36%), are having the biggest pressure on farmers’ finances. Financial pressures are not only affecting farm operations but are also the primary factor (55%) straining farmers’ mental health.
McCain’s new £30 million investment, developed in collaboration with its farmers, looks to support them through a range of initiatives such as:
- Adjusting the price per tonne paid for potatoes to reflect the increasing risk of yield variation.
- Access to strategic capital support, providing farmers with a direct cash injection covering up to 33% of their total investment into assets such irrigation infrastructure and storage.
- Setting out a 20% advanced payment of contract value to help with cashflow and support the increased negative working capital farmers are facing.
James Young, vice president of agriculture at McCain Foods GB, said: “British potato farmers are facing a myriad of unprecedented challenges from rising input costs to extreme weather events.
“We pride ourselves on the strong partnerships we have built with our 250 growers and are committed to supporting them. We believe this package bolsters our ongoing collaboration with growers to help ensure the long-term sustainability of British agriculture.”
Over two thirds (68%) of farmers claim the impacts of climate change have made arable farming less viable, with 57% stating it has significantly impacted yields as well as increased costs due to additional irrigation and drainage (38%). Over half (53%) have invested in sustainable practices on their farm in the last five years.
Sam Daw, a grower for McCain Food GB, added: “Our partnership with McCain is a core part of our business. It has had a clear and positive impact on direction, investment and positivity across our farming enterprises. The new package has rejuvenated confidence in the sector, reshaped our cashflow and allowed for investment and growth planning.
“The commitment to regenerative agriculture complements our other farming enterprises. Incorporating manures from our livestock, keeping green cover over fields for longer with cover crops and utilising reduced soil movement cultivation equipment across a wider range of crops. The farm’s relationship with McCain is so much more than a potato crop. It’s confidence, resilience and growth.”