Half of UK farmers have reconsidered their future in the sector due to a rise in financial pressures in the last year, according to a new survey from McCain.
In response, McCain Foods has launched an ongoing package of support for its 250-strong network of farmers, equating to an additional £30m of investment over the next three years.
McCain is the largest purchaser of the UK potato crop and said it wanted to ensure the long-term sustainability and resilience of British agriculture, which is vital to the country’s food security.
This package sits alongside existing measures, including supporting growers with their transition to regenerative agriculture practices and ensuring fair prices for their potatoes.
A survey of arable farming decision-makers commissioned by McCain revealed over a third of farmers said energy (35%) and fertiliser costs (32%), as well as environmental threats (36%), were putting the most pressure on farmers’ finances.
Financial pressures are not only affecting farm operations but are also the primary factor straining farmers’ mental health, according to 55% of those surveyed.
In response to these challenges, the investment from McCain will offer a range of initiatives, including adjusting the price per tonne paid for potatoes and setting out a 20% advance payment of contract value, to help with cashflow and support the increased negative working capital farmers are facing.
It will also improve access to strategic capital support by providing farmers with a direct cash injection of up to 33% of their total investment into assets such as irrigation infrastructure and storage.
“British potato farmers are facing a myriad of unprecedented challenges, from rising input costs to extreme weather events,” said James Young, VP agriculture at McCain Foods GB. “We believe this package bolsters our ongoing collaboration with growers to help ensure the long-term sustainability of British agriculture.”
Climate change is also a significant challenge, with over two-thirds (68%) saying the impacts of climate change had made arable farming less viable and 57% stating it had significantly impacted yields, as well as increased costs due to additional irrigation and drainage.
McCain is committed to implementing regenerative agricultural practices across 100% of its potato acreage by the end of 2030.
“The new package has rejuvenated confidence in the sector, reshaped our cashflow and allowed for investment and growth planning,” said Sam Daw, a grower for McCain Foods GB. “The commitment to regenerative agriculture complements our other farming enterprises, incorporating manures from our livestock, keeping green cover over fields for longer with cover crops, and utilising reduced soil movement cultivation equipment across a wider range of crops.”
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