New figures from the Department for Environment, Food & Rural Affairs (Defra) have revealed a concerning decline in farm business incomes across the horticultural sector in England.
For the financial year 2023/24, horticulture farms have seen their average Farm Business Income (FBI) drop by a significant 38% compared to the previous year. Between March 2023 and February 2024, the average horticulture farm income fell to £59,100, underscoring the ongoing challenges faced by the sector.
The decline, which represents a fall from the higher income levels recorded in 2022/23, highlights the impact of multiple pressures on the horticulture industry. Rising input costs, labour shortages, and fluctuating market prices have all contributed to the reduced profitability of horticulture farms. The income drop comes as the sector continues to navigate the aftermath of Brexit, supply chain disruptions, and inflationary pressures affecting everything from fertilisers to energy costs.
According to Defra, the 2023/24 season was marked by increasing production costs, which placed significant financial pressure on growers. Energy expenses, in particular, surged amid high prices for electricity and natural gas, both critical to greenhouse and other controlled environment production. Labour availability also remained a significant issue, with many farms struggling to recruit seasonal workers, leading to unharvested crops and increased waste.
Horticultural producers are also grappling with changes in consumer demand. Despite a growing awareness of the health benefits of fresh fruits and vegetables, inflationary pressures have pushed many consumers towards cheaper, processed alternatives. This shift in purchasing behaviour has had a knock-on effect on farm gate prices, making it difficult for growers to pass on increased production costs to consumers.
The decline in income is part of a broader trend affecting multiple farming sectors in England, although horticulture has been particularly impacted due to its reliance on high-cost inputs and seasonal labour. Comparatively, other sectors such as cereals and mixed farming have shown a degree of resilience, thanks in part to relatively stable market prices and more robust support from government schemes.
Industry bodies have voiced concern about the implications of these figures for the future of British horticulture. The National Farmers' Union (NFU) has called for urgent government intervention to support struggling growers, warning that without additional support, the UK risks losing significant horticultural capacity. They argue that ensuring the viability of horticultural businesses is crucial for food security, particularly in the face of climate change and increasing global supply chain uncertainties.
The Defra report comes at a time when the UK government is promoting sustainability and food resilience. However, the sharp drop in horticulture farm income may pose challenges for achieving these aims, as reduced profitability could dissuade investment in sustainable farming practices or technological innovations.
Looking ahead, growers are hoping for a more favourable 2024/25 season, with expectations for stabilising energy prices and improved labour schemes to alleviate worker shortages. However, the recent figures serve as a stark reminder of the fragility of the sector and the need for continued support and policy measures to sustain horticultural production in England.
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