Unit 1 Micro: Difficult Times for UK Farmers

The British farming industry faces a number of challenges including an ongoing battle with the supermarkets to achieve better prices for their products. They are also engaged in negotiations with the European Union about reforms to the CAP that might take farm land out of production. And there is the long-term threat of adapting to and coping with extreme weather linked to the impact of climate change.

This Financial Times news video reports on some of the issues facing farming in the UK. This BBC news video reports on progress in discussions between farmers and the supermarkets over the price paid for farmers for supplying fresh milk. The background for farming ought to be more positive. Farming had several years of low incomes, but there has been considerable improvement since 2007 not least because of rising world food prices and a more competitive exchange rate. Total incomes to the UK farm industry amounted to nearly £4.4 billion in 2010. The total value of direct payments to farmers from the European Common Agricultural Policy (CAP) was £3.1 billion in 2010.