Most farms bracing for profit losses post-coronavirus, finds survey
This article suggests a significant disruption but less terminal outcomes from coronavirus for farm businesses than I might have expected. It tells us:
An overwhelming majority of farming and rural businesses are bracing for heavy profit losses following the Covid-19 pandemic, according to a new survey.
Property consultancy Knight Frank has launched its 10th Rural Report today (19 June), revealing the impact of the coronavirus on UK rural firms.
Surveying hundreds of farmers and other rural stakeholders, 80% said they expected profits to fall in 2020, with 35% saying profitability would be affected ‘significantly’.
While firms relying mostly on traditional income sources said they would be less affected, the ones that largely depend on tourism or leisure expected to be badly hit.
Just under 40% of those taking the survey said they had shut down elements of their businesses, while a similar proportion said tenants were struggling to pay their rents.
Four in 10 confirmed they had furloughed staff as part of the government’s coronavirus job retention scheme, but only 3% reported making redundancies.
However, only 8% of respondents believed their long-term viability was under threat – and many were still making plans to expand or diversify their businesses, including tapping into concerns about the environment.
Half of respondents plan to plant more trees, while almost 40% expect to dedicate more of their land to conservation.
Clive Hopkins, head of farms at Knight Frank, said Covid-19 had ‘ruthlessly exposed’ financial vulnerabilities within the rural sector.