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Agvendor.co.uk is a Farming Business Services Website dedicated primarily to the agricultural community in the UK for the purchase of Agricultural Products and Services. The suppliers will endeavour to offer benefits as a reward for purchases made through Agvendor.co.uk.

Latest Farming News

You might think the most important thing happening in the UK farming industry is the summer harvest.

But as the fields of wheat and barley are brought in for the winter, farmers will have their eye on something other than the weather.

"The exchange rate between the pound and the euro is absolutely vital. It is the single biggest determinant of the profitability of British farming," says Anand Dossa, economist at the National Farmers Union.

The average exchange rate between the euro and the pound in September will determine how much money UK farmers get from the European Union's Common Agricultural Policy (CAP) - the source of more than half of UK farming's income last year.

CAP payments are set in euros, so what British farmers get depends on the exchange rate; last year they got the worst rate in eight years.

Since the EU referendum the pound has fallen to 30-year lows against the dollar and has weakened significantly against the euro.

This means there could be a 15% increase in farmers' EU subsidies once they're converted into sterling - about an extra £500m.

Competitive edge

However, the weaker pound can make fuel, fertiliser and food for animals more expensive, but there is some evidence that in some areas it has already given a boost to UK produce, both at home and abroad.

Irish beef imports have now become more expensive in the UK due to the weaker pound

Foreign-sourced food has now risen in price compared to home-grown produce, and UK farmers have gained a competitive edge when selling overseas.

Trading relationships

The UK exported £18bn of food and drink last year and imported £38.5bn worth. Its biggest trading partners were Ireland, France, the Netherlands and the USA.

The boost from the fall in the pound, both through prices and EU subsidies, was much needed, say many farmers.

Prices have been falling for almost three years in the UK. The latest data from the Department for Environment, Food & Rural Affairs (Defra) shows they are almost back to 2010 levels. The NFU says many family farms in the UK "would not be viable" without state support. Defra, a department that is now headed by Andrea Leadsom, a prominent pro-Brexit campaigner, says support for farmers will form "an important part" of the UK's exit from the EU.

In a statement it said: "We will work to ensure the best possible outcome for the British people; not least our farming community who play a vital role in our country."

Many family farms in the UK "would not be viable" without state support, says the NFU
 
SOURCE :  BBC NEWS

 

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