Farmers on the road

Britain’s farmers are maintaining their campaign against government food and agriculture polices. Tax changes make the headlines, but other issues threaten the industry, particularly costs.

Farmers showed their anger in demonstrations in central London on 26 November, Budget Day. The Metropolitan Police imposed a last-minute ban on agricultural vehicles entering Whitehall. Some farmers were already on their way, and many tractors made it into Whitehall with large crowds of farmers and their supporters.

Support

Another tractor convoy demonstrated in London on 10 December. Outside London many participants in traditional Christmas tractor runs decorate their vehicles with slogans calling for support for farming and food.

This followed farmers’ demonstrations at political party conferences, and a Day of Unity on 24 November with co-ordinated protests throughout the country.

‘Budget concession “nowhere near enough”’.

The Budget offered little on the changes to inheritance tax announced a year ago, dubbed the “family farm tax”. A concession allowing transfer of allowances between spouses was described by the NFU as “nowhere near far enough” to alter the impact.

There was nothing on energy costs (affecting many industries). And one change to sugar beet quotas will undercut British growers according to the NFU.

Pressure

No wonder farmers are cross, and they are under pressure from financial markets too. Wheat prices have fallen to half the levels of 2022; the costs of fertiliser, fuel and machinery remain constant or rise.

Futures markets have forced down the price of grain after harvest and speculators are betting on further price falls. Yet wheat imports rise: up by 26 percent in 2024/25 over the previous year and 65 per cent above the five-year average.

Inflation

Cheap wheat does not mean cheaper food for British workers – food price inflation runs at 4.7 per cent. No wonder farmers have public support.

The Financial Times quotes Britain’s leading agricultural auctioneers, Brown & Co, as saying that number of agricultural machines being put up for sale has risen sharply.