The Andersons Outlook 2025 has just been released, offering a concise yet comprehensive overview of UK farming business performance and what to expect in the year ahead.
This year’s report examines profitability across key farming sectors, addressing challenges such as rising fixed costs, reduced farm support, and the shifting policy landscape. It also provides insights into the prospects for land prices, considering recent tax changes and interest rate trends. With increasing pressure on farm businesses, the report explores how farms can build resilience to tackle the growing challenges of climate change, soil health, and economic uncertainty.
In their introduction the writers say, “This year, perhaps should start by looking back; specifically reflecting on the very challenging weather many UK farmers have had to deal with over the past 12 months. This has always been a prime topic of concern (and conversation) for farmers. However, there is a strong sense that climate change is causing greater extremes for our industry to deal with.
“This may require a shift in the way farming businesses are operated in future to make them more resilient, possibly in a number of areas. The first is around physical infrastructure – for example, buildings that are resistant to high winds, improved field drainage, sun shelter for livestock, systems to cope with high rainfall – the list is potentially long. Then there are farming systems. Robust rotations that spread risk, the maintenance of soil health, perhaps new crops, or a shift to cope with a lack of summer grass. Finally, there is the need to be financially robust. Not all farming risks can be mitigated – and it may not be cost-effective to do so. Therefore, businesses should have (or seek to develop) the capability to absorb the financial impact of a weather-affected season.”
Andersons Outlook 2025 also explores the evolving agricultural policy landscape across the UK, including the implementation of new schemes like the Sustainable Farming Incentive (SFI) and Countryside Stewardship (CS). Additionally, it delves into the UK’s changing trading relationship with the EU, particularly in light of the new Labour Government’s policies.