UK Farmers Trying to Protect against Economic Damage

It's easy to see why many feel they're caught between a rock and a hard place, and this can make it difficult to prepare effectively for the future, which is never as certain in the farming industry as in others. It can be difficult to deal with the everyday issues of running a farm though, never mind planning for the future. However, if the eye is taken off the ball for just a moment, then there could be increased risks and, eventually, increased costs. It isn't just the economic future they need to plan for, as they need to be ready for all of the many disasters that could befall any farm overnight.

Thinking about the Future

When it comes to planning for the economic future of a farm, the elephant in the room is Brexit – a very unpopular word for some farmers. For example, in 2014, Britain sold 40% of all its lamb and mutton produce to countries within the EU. Therefore, any farm that keeps sheep should be keeping up to date with these specific negotiations.

The above statistic is matched by the fact that 40% of the EU's budget is spent on agriculture. When Britain leaves the EU, the Common Agricultural Policy (CAP) subsidies will end for farmers in this country, and our politicians have yet to put an alternative system in place to account for all of those who will lose money out of the changes. It will be worth farmers doing their own research on which produce will be the least risky after Brexit, and ensuring to work it into their business strategies.

Using Assets Effectively

The bigger a farm estate is, the more assets it will be likely to have. One of the best ways to protect from economic damage is to build up a capacity to diversify a farm's operations should some of its ventures become less profitable. Therefore, farmers should consider fully utilising their land. Farmers with free land, for example, could open a small-scale camping or caravan sites. Additionally, any unused buildings could be renovated and turned into a holiday home, profitable during the summer and winter months if located in a scenic area.

Farms with a lot of storage space can utilise these assets – they can talk to other local farmers who might appreciate the opportunity to pay for some extra space to store equipment. Many are trying their hand at opening up a farm shop, and even 'honesty boxes' are becoming more common.

Guard against Disease

One way the agricultural industry should protect itself, alongside other measures, is by taking precautions against diseases. Outbreaks can do an unbelievably large amount of economic damage to farmers, and can strike at any time. Farmers should always be taking preventative measures, such as cleaning and disinfecting vehicles and protective clothes both before and after contact with animals. They should maintain fences so that animals can't interact with those belonging to other farms. Rivers and streams should also be fenced off, and animals should be provided with fresh drinking water in troughs to ensure their safety. Although Brexit is an external economic risk to farmers, disease could be much more destructive, as farmers who were affected by the foot-and-mouth outbreak of 2001 will know. They will remember how easily transferred the disease was – by direct animal contact, by infected feed, and through human bodies, clothes and vehicles.

All farmers should be extremely vigilant for signs of an outbreak, and if one is identified then it should be reported to the APHA and acted on immediately. Equipping farms with animal incinerators could make a huge difference to the effectiveness of their response in the case of another outbreak. It is a preventative measure as well, since it's one of the safest ways to dispose of any animal waste.

Selling Equipment

When budgets run tight, it's a very common response for farmers to sell off as much machinery as possible. However, this can often result in a loss for them in the long run. It will often save much more money to have faulty machinery repaired and old machinery renovated than to sell it on. Therefore, inspect your machinery fully before selling it and replacing it with new equipment; ask mechanics and professionals to weigh up the costs. You need to save as much money as possible, in case of other unforeseeable disasters.

It might even be a protective measure for farmers to buy up cheaper second-hand equipment and machinery, which could be fixed up and sold for a profit. However, this would only be profitable for farmers who are knowledgeable of farming equipment mechanics.

Paying Attention during Spraying Season

One way that many farmers are missing out is by not taking control of spraying when the time comes. This is the process that could lose them the most money. For example, using too much pesticide is a waste, as well as harmful, and can contaminate other crops. Using too little, though, can be just as damaging. In 2015 alone, 80, 274, 553 hectares of Great Britain were treated with pesticide. Therefore, due to its high usage, farmers need to be diligent with their spraying and consider the advantages and disadvantages.

Farmers have a responsibility to regularly calibrate sprayers to avoid blockages and other issues that will make spraying inconsistent and environmentally damaging. A too high concentration of pesticide in some areas can lead to it causing a drift or ending up in a river. However, some farmers are cutting out this process as part of a wider economics strategy, as there has been a noticeable surge in local and organic markets – and because the market is growing so quickly, this could be a worthwhile investment. Farmers thinking along these lines should at least look into the natural alternative to pesticides for better marketability.