AYRSHIRE farmers are having to “scale-back” production as “exponential” price rises put severe pressure on the rural economy.
According to a survey by the National Union of Farmers, production on Scotland’s farms and crofts is “set to be scaled back as producers respond to unprecedented price increases.”
Beef and sheep farmers like Jimmy Ireland who operates a farm at Failford, says that “sadly, that is how some farmers have had to react. I know some farmers who are just scaling back and doing less to try and make their business work.”
Jimmy, whose “father was a farmer” and grandfather before him, expressed concerns with the rise of inflation, which is hitting farmers the ‘hardest.’
“Fuel is a major issue. When you hear them talking about inflation at 10 per cent, agricultural inflation is way higher than that.”
“Sheep, fuel and fertiliser, the ‘big ones’ in our business, are horribly more expensive than they were a year ago. To try and get your head around that and keep the business going is hard.”
According to the Department of Environment, Food and Rural Affairs, the cost of key inputs such as soil improvers has increased by nearly 30 per cent.
The rural economy in Ayrshire is mostly based on sheep and beef farming, according to region’s NFUS Manager, Christine Cuthbertson.
She said: “Farmers make a lot from their grass, but it takes a lot of input.
“The day-to-day inputs are going up, the cost of fuel, materials and even labour is hard to get and it’s expensive as well.”
“In a lot of cases the farmers are still not making a profit, it’s going in a cycle, some prices have risen but not by enough to cover input costs, and many farmers are working for less than the minimum wage.”
Another issue facing farmers is the increase in imported agricultural goods, according to Jimmy.
“Foreign imports are a bit of a concern to me because there is no cheap food in the world anymore, there used to be quite a substantial amount of cheap food floating about, I mean our beef price is now on par with the rest of the world. It used to be that Scotland was quite a bit higher for the quality product it is.
“They are very determined people, farmers, but it is very difficult to see at this moment in time where things are going. This volatility is quite extreme.It can also affect our food security. As a country we want to be sufficient, but less than 65 per cent of our food is locally sourced. We do not want to see that drop.”
However, saving this vital sector, which Christine describes as the “forgotten heartbeat of Ayrshire”, is no small feat.
Elena Whitman, MSP for Carrick, Cumnock and Doon Valley, says she is “acutely aware” of the issues facing local farmers and that she is supportive of efforts by the Rural Affairs Secretary to ‘listen to farmers.’
She said: “The Scottish Government has limited financial powers to tackle the cost-of-living crisis but annually, the Scottish Government pays out around £420 million through the Basic Payment Scheme and Greening payment.”
She also cited “the creation of a new Food Security Unit that will “monitor risks, identify how to protect food production and supply, and respond rapidly, which has been welcomed by the NFUS.”
However, according to farmers like Jimmy, more still needs to be done to support this industry. One major pressure facing farmers is the price of fuel which has increased by over 50 per cent since 2020.
He said: “The fuel duty right now must be quite criminal, the VAT we are getting from fuel is hammering us, it’s really crucifying our business, so there is surely something a government could do to give us a leg up.”
Despite these severe challenges, Christine added: “I think Ayrshire farming, at its heart, is very sustainable because we are great at growing grass and have the rainfall to do that.
“We are resilient, and we are in a good place. We have a lot of passion and knowledge, and we have very good businesses who are always progressing and assessing what they do.”
Elena Whitman is encouraging farmers to take part in the Scottish Government’s survey by registering at: TSF_Mailbox@gov.scot with their Business Reference Number.
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