TFP not enough to make up for Brexit

Farm productivity in the UK is improving very slightly but not by enough to make the post-Brexit industry globally competitive.

Richard King of Andersons Farm Business Consultants estimates total factor productivity (TFP) had only risen by 1.3% since 1973. Since 2005 the improvement had slowed to an almost imperceptible 0.7%.

“TFP is an index which shows how efficiently farm businesses turn inputs into outputs.

“It looks at physical quantities so swings in market prices do not influence the figures,” said Mr King.

On a global basis the UK lags behind competitors in a group of countries including Ireland, France and New Zealand.

The list is led by a striking margin by Brazil due to its low starting point but countries with much more developed farm economies such as Denmark, Germany and the US also feature among the most efficient.

Mr King challenged the perception there had been major structural change in farming in the UK over recent decades despite declines in sectors such as dairy and pigs.

Overall farmer numbers had been “incredibly static” since the millennium with no massive switch to parttime farming. There were still 300,000 UK farmers but with significant changes on the way he expected greater change in the next decade.

“A look at average performance figures might lead to the conclusion UK farming is not very good but they hide a huge range in performance, especially in dairy.

“It is possible for good farms in any sector to make reasonable returns,” said Mr King.