Watching the thousands of people who flocked to the 107th annual Wensleydale Show last week, was fair reminder of farming’s input to the economy. From farmers and prize livestock to the trade for stallholders, the value of agriculture was clear to see. It is big business. A fact I hope that was not lost on the visiting Chancellor of the Exchequer.
In terms of contribution to the UK’s offers, the industry is right up there. From farming, additional income flows through rural communities to trickle down through wider regional economies, resulting in a lift to overall national economic growth.
Agricultural shows alone attract millions of pounds and huge numbers of visitors. According to the Association of Show and Agricultural Organisations about seven million people attend events across the UK every year and this figure is growing.
In 2019, shows generated £128.6m of income. Like most other events, agricultural shows fell victim to Covid. The cancellation of shows last year led to a £36.5m loss, while the impact on the wider economy was an estimated loss of £810m.
Events aside, farming injects revenue across the country’s financial systems. The production and sale of billions of pounds worth of crops and animal products underpins the sector. It is the bedrock of the UK’s largest manufacturing sector, food and drink, worth over £120 billion to the country’s economy. As a recent example, figures released in a report by Quality Meat Scotland showed that in 2020 primary red meat processing generated £815m of revenue and paid over £77m in salaries.
As an employer alone the sector makes a major contribution to the nation’s wealth. On and off the farm, it is responsible for the creation of millions of jobs in areas across the wider agri-industry supply chain. There are the obvious partner industries – farmers need a place to buy feed and seed, and someone to handle the upkeep of their livestock and machinery. Add in sectors such as tourism, renewable energies and niche suppliers, and agriculture’s knock-on value soon adds up.
Innovation in agricultural practices and food production is an emerging economy in itself. New products and markets secure revenues for parties involved at all stages, be it the programmers creating new agri-tech software, to the reps and marketing teams pushing sales.
Farmers themselves are quick to diversify to generate additional income in more traditional ways too. Many farms also run other enterprises from B&Bs, farm shops to wedding venues. The significance of the UK’s rural economy was recently recognised in the annual Rural Business Awards. The sector in England alone contributes £261bn to the nation’s economy, nearly a fifth of the country’s total economic activity. (Congratulations to The Wensleydale Experience who was named as the country’s best rural tourism company!)
Economies are built around needs and people. Being both producers and consumers, farmers receive and give to the nation’s cashflow. Families need to buy groceries, farmers need a place to buy feed. We all derive economic benefit from agriculture. As a business model agriculture brings real worth into rural communities and beyond. While individuals may be a small part of the supply chain, our farmers are a sizeable financial asset.
