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UK farmers’ incomes stuck at 1970s levels, major report warns

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A new study conducted by the Food, Agriculture and Country Committee revealed.

While productivity has improved and the number of people who are now working on the ground, the average annual farm income – at about 32,272 pounds over the past five years – hardly barely in real terms for five decades.

The results come amid farmers' protests against a new inheritance tax on agricultural assets, pushing fears that families are forced to sell land just to pay the tax. This doubles at the end of the European Union subsidies and the 18 months ever, leaving many producers facing some of the most difficult memory trading conditions.

The sharp declines in the price of agricultural products are highlighted as a major motor for low income. Unification is unified among the senior suppliers of animal feed, fertilizers and limited power machines for farmers to negotiate, while supermarkets buy in large quantities and focus on imports, which increases pressure on UK producers. According to the report, a handful of companies dominates the supply chain for the main inputs, such as ABATTOIR services and dairy processing, giving agricultural communities small shopping space.

In addition, the cheapest foods and superior treatment have gained popularity among consumers, which leads to the erosion of demand for luxury products higher locally. As a result, the real income increased in other sectors during the same period, but it seems that agriculture has left behind it.

The committee's recommendations include adopting basic standards in commercial deals to ensure that imports meet UK standards on the environment, health and animal welfare. It also calls for a new regulator in the food market with an authorization for the general value championship, and government spending to focus on nutritional crops such as fruits, vegetables and legumes. Environment Minister Steve Reed pledged to publish a 25 -year agricultural plan that deals with the justice of the supply chain, so farmers are paid enough for what they are doing.

While food prices for consumers have declined in recent years, the report argues that the real cost of low food prices is transmitted through low rural income, the decrease in wildlife, ecosystems, and undermining local food security. Four companies provide about 70 % of pork from fresh cows for supermarkets in the UK, while only two dairy processors deal with about 40 % of national milk output. More than half of the feed and sheep in the United Kingdom are sold by four companies, and three of the large fertilizers producers dominate the supply, leaving many farmers who have been pressed financially and lacking the power of real negotiation.


Jimmy Young

Jimmy is a major business correspondent, as he brings more than a decade of experience in the commercial reports of small and medium -sized companies in the United Kingdom. Jimmy holds a certificate in business administration and regularly participates in industrial conferences and workshops. When not reporting the latest business developments, Jimmy is excited to direct journalists and new businessmen to inspire the next generation of business leaders.

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