Arable Farming Finance: 4 factors affecting arable farmers in East Anglia 

Being based in East Anglia, I often meet with arable farmers, many of whom are facing challenges within their farm businesses. Part of my role as Business Development Manager is to find ways to support farmers who are struggling to access arable farming finance from mainstream lenders. Farming is a complex and demanding business, and arable farming in particular is subject to a range of challenges that can impact profitability and sustainability. 

1. How has climate change impacted arable farmers? 

Many farmers are starting to face challenges surrounding climate change, and for arable farming, these challenges are often more costly. Climate change is causing more frequent and intense weather events, such as droughts, heat waves, floods, and storms. These extreme weather conditions can damage crops, reduce yields and lead to increased input costs. These conditions are often more strongly felt in the east of the UK, which tends to have a much lower average rainfall than the rest of the UK. 

In addition, in East Anglia in particular, prolonged periods of dry weather can reduce soil moisture levels significantly, making it more difficult to grow crops and increasing the need for irrigation. 

To overcome this challenge, farmers need to be prepared for a range of weather conditions. This means investing in irrigation systems, implementing soil conservation techniques and selecting crops that are more resilient in extreme climate conditions. 

All of these solutions require upfront investment, which is where UK Agricultural Finance can help. We are able to offer arable farming finance to support those who are looking to future-proof their farm business by tackling the challenges posed by climate change. 

2. How can arable farmers protect themselves against pests and disease? 

Another challenge for arable farmers is pest and disease control. Pests and diseases damage crops, reducing yields and quality, and can also increase the need for pesticides and other inputs. This can be costly and impacts the sustainability of farming operations. In addition, the use of pesticides can also have negative environmental impacts.

To address this challenge, it’s important to adopt integrated pest management (IPM) practices, which involve using a range of techniques such as crop rotation, biological control and cultural practices. There is also an option to invest in disease-resistant crop varieties and monitoring crops regularly for signs of pests and diseases.

There is increasing pressure from government and environmental schemes to reduce the use of pesticides. But during the transition to more sustainable options, farmers can suffer from cash flow problems, which are often mitigated once they have completed the transition between different farming practices. 

Biological controls can take time to establish if moving from highly pesticide-reliant farming practices, as wildlife, habitats and ecosystems take time to re-establish themselves. Alternative quicker options, are more cost-intensive such as robot pest management and are still in the early stages of development. 

3. How does market volatility affect arable farming? 

Market volatility is another big challenge for arable farmers. This has been particularly apparent in recent years, with some costs soaring exponentially, such as fertiliser and fuel prices. Prices for crops can fluctuate based on a range of factors, including global supply and demand, currency exchange rates, and weather conditions. 

The war in Ukraine had a huge impact on many cereal prices last year as Ukraine is one of the biggest exporters of cereal crops in the EU. This can make it difficult for farmers to predict their income and plan for the future. 

Farmers in East Anglia are diversifying their crops and income streams. This helps to reduce their reliance on a single crop or market, and can provide a more stable income. Farmers can also consider investing in futures or options contracts to help manage price risk.

4. How are arable farmers handling the agricultural labour shortage? 

One of the main challenges facing the agricultural sector, which has been highlighted by everyone I have spoken to, is a shortage of labour. Many arable farmers rely on migrant workers to help with planting, harvesting and other tasks, but tighter immigration policies and a lack of available workers have made it difficult to find the necessary labour. This has led to delays in planting and harvesting, as well as increased labour costs. 

This issue has been worsened by political events in Europe, such as the war in Ukraine, as many previously migrant workers have remained in Ukraine to support the war effort. Unfortunately, there is a significant skills’ shortage within the UK labour force for the type of seasonal work required by arable farmers. This means even if farmers are able to source UK labour, they often have to spend time and resources to train them, which can impact the tight timescales involved in arable farmer. 

Alternative options such as the use of robotics within arable farming are not easily accessible for most arable farmers, as they are either still in development or prohibitively expensive. 

What is the outlook for arable farming, and how can we help with arable farming finance?   

Although there are significant challenges in the sector, DEFRA is continuously working towards a more sustainable and environmentally friendly agricultural system in the UK. By incentivising farmers to adopt more environmentally friendly practices, DEFRA aims to improve the health of the environment and support the long-term sustainability of farming in the UK. 

At UK Agricultural Finance, we are committed to supporting farmers in the region and helping them to overcome these challenges. By investing in technology, adopting sustainable practices, diversifying their crops and income streams, and staying informed about the latest regulations and requirements, arable farmers in East Anglia can build resilient and profitable farming operations. 

We are committed to bridging the gap between government funding and open-market funding. With the right support and guidance, these farmers can continue to produce high-quality crops and contribute to the local and national economy.

For more information about how we can help support you with cashflow or growth funding, please contact me at 07465 745329 or email at sharon@ukagriculturalfinance.com