McCain Foods’ annual farming report found that external conditions are negatively affecting farmer’s future plans, with extreme weather, rising costs and policy uncertainty all playing a major role.

Over eight in ten farmers (86 per cent) said policy uncertainty is negatively impacting their farm, while 74 per cent reported that increasingly unpredictable weather is making it more difficult to manage the farm effectively.

Additionally, the rising input costs are also a major concern, with 87 per cent saying it has significantly impacted profitability over the past year.

Over a quarter of farmers (27 per cent) reported making a loss or breaking even in the past year, while only 29 per cent posted a 1 to 5 per cent profit.

There is significant financial pressure, with 42 per cent thinking of exiting farming because of financial constraints and 40 per cent questioning whether they will still be farming in the next ten years.

The results revealed there is growing concern around Britain’s long-term food security, with only 5 per cent optimistic about Britain’s ability to secure its future food supply, while 87 per cent are pessimistic.

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The research found that 91 per cent believe more investment in British farming is required to safeguard the UK’s long-term food security.

Over half (61 per cent) of farmers stated their confidence to invest depends on government support that improves long-term profitability and simpler applications and compliance requirements (47 per cent).

There is increasing concern that cheaper imports produced to much lower standards are undermining locally made produce, profitability and food security.

This year’s drought has also led to climate change being one of the top concerns among farmers. Over a quarter (27 per cent) cited it as one of the biggest pressures on their farm’s finances, while 34 per cent see it as one of the biggest long-term threats to British farming’s growth.

James Young, VP agriculture, McCain Foods, GB&I said: “One year on from our inaugural Farmdex report, this year’s iteration should leave little doubt about the issues farmers are facing. While some indicators have improved, the overall picture shows a sector continuing to face significant challenges.”