A survey commissioned by McCain Foods found that half of UK farmers have reconsidered their future in the sector due to a rise in financial pressures in the last year.
It revealed that rising energy (35%) and fertiliser costs (32%), as well as environmental threats (36%), are having the biggest pressure on farmers’ finances. Financial pressures are not only affecting farm operations but are also the primary factor (55%) straining farmers’ mental health.
In an effort to support its 250-strong network of farmers, McCain, the UK’s largest manufacturer of frozen potato products, has launched a new ongoing package of support for its growers, equating to an additional £30 million investment over the next three years.
This package sits alongside existing measures, which includes working together with growers as they transition to regenerative agriculture practices and ensuring fair prices for their potatoes.
The new package includes initiatives such as:
- Adjusting the price per tonne paid for potatoes to reflect the increasing risk of yield variation
- Access to strategic capital support, providing farmers with a direct cash injection covering up to 33% of their total investment into assets such irrigation infrastructure and storage
- Setting out a 20% advanced payment of contract value to help with cashflow and support the increased negative working capital farmers are facing
McCain is also working with growers to navigate the extreme weather patterns, such as heavy rainfall, flooding and unseasonably mild temperatures, that are placing additional strain on farmers’ finances. Together with its growers, McCain is committed to implementing regenerative agricultural practices across 100% of its global potato acreage by the end of 2030.
Over two thirds (68%) of farmers claim the impacts of climate change have made arable farming less viable, with 57% stating it has significantly impacted yields as well as increased costs due to additional irrigation and drainage (38%).
As climate change impacts present day practices, 87% of farmers agree there is a need to transition to more planet-friendly practices to ensure the viability of farming for years to come. Over half (53%) have invested in sustainable practices on their farm in the last five years.
Sam Daw, a grower for McCain Food GB, said “Our partnership with McCain has had a clear and positive impact on direction, investment and positivity across our farming enterprises. The new package has rejuvenated confidence in the sector, reshaped our cashflow and allowed for investment and growth planning.
“The commitment to regenerative agriculture complements our other farming enterprises. Incorporating manures from our livestock, keeping green cover over fields for longer with cover crops and utilising reduced soil movement cultivation equipment across a wider range of crops.
“The farm’s relationship with McCain is so much more than a potato crop. It’s confidence, resilience and growth.”
To support its farmers on this transition, McCain is testing regenerative agriculture practices and trialling new technology at its Farms of the Future projects, located in McCain’s hometown of Florenceville, New Brunswick, and in South Africa. This is supported in the UK by three demonstration farms across the country, where growers are invited to see the results firsthand.
