A recent study paints a stark picture of the farming industry in York and North Yorkshire, revealing that more than half of the region’s 7,000 commercial farms are struggling to generate sustainable profits. The report, commissioned by Mayor David Skaith and unveiled at the Great Yorkshire Show, sheds light on the financial pressures faced by farmers.
Over 52% of farms in the region are not making economically viable profits, relying heavily on off-farm income to stay afloat. The situation is exacerbated by challenges such as climate change, the effects of Brexit, and the phase-out of Basic Payments, a key support mechanism for farmers. Without adequate tax planning, the report warns that the region’s farming sector could experience a severe financial downturn, with up to 73% of farms potentially facing unsustainable profit margins under worst-case scenarios.
The impact of climate change is also a growing concern, with farmers citing extreme weather fluctuations and reduced harvests as major contributors to declining yields. A 20% reduction in crop output due to climate change could erase all profits in the region.
Despite these challenges, the report offers a glimmer of hope, suggesting that with the right support, farms can improve financial resilience. Recommendations include transitioning to low-carbon, nature-supporting farming practices and fostering greater knowledge-sharing among farmers. The call is for more tailored, long-term support to help farmers adapt and thrive in a changing landscape.
