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Farming: Agriculture plagued by economic uncertainty.
(From The Journal)
Byline: Kevin Guy, of George F White
WHAT started as a year promising so much within the agricultural sector has ended with uncertainty.
The incessant reference to oil prices, interest rates, exchange rates, borrowing and credit crunch have unsettled many. The impact which these have upon specific rural businesses is dramatic and felt immediately.
Everyone was affected by the record rise in the cost of crude oil, not only at the pumps, but also in the cost of fertiliser and feed deliveries, to name but two. The terrible harvest weather caused the driers to be used non-stop, which again hit the bottom line.
The cut in interest rates has been good news to many, although many small businesses have not seen these filter through, and in some instances received the news that their banks were in fact raising the cost of finance.
Most commentators are concerned about the speed at which sterling has devalued. Whilst this is possibly beneficial to the exporters of goods and Single Payment claimants, the pressure which such devaluation places on the economy as a whole will surely filter down to a local level and impact upon viability.
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