Almost three-quarter of British farmers fear regulation and legislation will have a dramatic impact on their businesses next year.
The results of a survey of farmer confidence by NFU England also showed production costs (68%) and Common Agricultural Policy reforms (50%) weighing heavily on the minds of those questioned.
Overall confidence levels, however, are up on 2012, when horrendous weather conditions hit farms across the country, affecting crop yields and livestock production.
NFU chief economist Phil Bicknell said the fears over regulation, which 74% of respondents indicated as a worry, was a clear message that government must do all it can to ease the legislative and red-tape burden farmers feel they are under.
He added: “A lot of frustration remains in this area, with farmers reporting little perceptible difference of burden on the ground, despite initiatives like Red Tape Challenge and the Farming Regulation Task Force (in England). For these initiatives to be credible, we need to start seeing positive outcomes and farmers.”
Mr Bicknell said Europe also needed to act. He cited the new restrictions on neonicotinoid insecticides after they were linked to deaths and heath problems in bees. The new rules could have a significant impact on arable farmers, he added.
Over input costs have increased by 21% in the last three years, with fertiliser and feed up 22% and 44% respectively.
Mr Bicknell said the higher score for Cap was a strong signal of farmers’ pessimism over the new package, due to be implemented in 2015.
“Budget cuts, the uncertainty surrounding new agri-environment schemes and the commercial impact of the new mandatory greening rules have already negatively influenced farmer’s perception of the new legal framework more than a year ahead of its implementation,” he said.
“Confidence is critical because it influences investment and production intentions. Overall, it seems that the improved weather conditions had a positive impact on short-term confidence. But we need to be looking to the long term if we’re going to meet the food-production challenges that lie ahead.
“If we want our farms to compete in an increasingly global marketplace, we need government action that addresses uncertainty, incentivises consistent investment patterns and produces action rather than rhetoric when it comes to reducing red tape.”