Farms consider more direct sales to combat rising costs

Damian Maye, Professor of Agri-Food Studies at the Countryside and Community Research Institute (CCRI), said: “At a time of flux in farming, our findings present a picture of a sector in the rural economy which is particularly impacted by current economic conditions, but with farmers generally seeking to be proactive in response.

“Farmers considering selling more produce direct to customers to increase their returns from the market, as income support payments are reduced, is not only a sign of business resilience but continual adaptation. However, they require advisory support to realise these opportunities, alongside the need to target farm business engagement and knowledge exchange to reflect sector, institutional and cultural differences and supply chain dynamics.”

NICRE’s survey also sought to assess farms’ pro-environmental practices, a key principle of the agricultural transition in England. Almost nine out of 10 farms monitor soil quality at various intervals, with adoption varying by size, but take-up of carbon footprint calculation was less widespread, with only a third of farms carrying this out.

The Food, Farming and Countryside Commission and Strutt & Parker have welcomed the report.

Sue Pritchard, Chief Executive of the Food, Farming and Countryside Commission, said: “Our own work with farmers shows how game-changing selling directly can be for their businesses, livelihoods and communities. When we’ve toured the country, so many of the farmers we meet who are feeling upbeat and resilient – which is no mean feat in UK agriculture right now – are doing this, and we welcome these findings from NICRE.

“It is also clear that people crave this connection with where their food comes from. As well as a strong concern for government and supermarkets to do right by farmers, this appetite for short supply chains is one of the recurring themes we’re hearing from the citizens taking part in the unprecedented National Food Conversation that’s happening right now. Policymakers and politicians of all parties should take note.”

Jason Beedell, Rural Research Director at Strutt & Parker, NICRE’s business partner, said: “Falling support payments, higher costs, lower commodity prices and extreme weather events have combined to present farmers with a very challenging couple of years. Layer on a growing sense of unfairness about their treatment in the supply chain and, understandably, farmers are looking for new ways to farm profitably and reduce risk.

“Selling more produce direct is one way for farmers to take more control and there are plenty of examples where farming businesses are really making it work for them, for example by selling niche crops or adding value. But it is not an option that is practical for everyone – some farms do not have the right infrastructure and selling and marketing produce direct to consumers requires a different skill set to growing it. There are also legislative requirements to navigate, such as health and safety or planning.

“The survey results on environmental practices show that the expense of carrying out soil testing has been one of the biggest barriers for small farms. However, funding is now available through the Sustainable Farming Incentive to help offset these costs, so we anticipate the numbers of farmers regularly soil testing will rise. It is one of the most popular options in the Sustainable Farming Incentive scheme and we also expect it be become more required by supply chains.”

The survey was developed by NICRE's partners: Centre for Rural Economy and Business School at Newcastle University, ERC at Warwick University, and Countryside and Community Research Institute at the University of Gloucestershire and Royal Agricultural University.