Farmland prices hit and jobs in jeopardy

14 August 1997

Farmland prices hit and jobs in jeopardy

Agricultural consultants forecast that farmland prices could fall by 30% to around 2,471 per ha (£1,000 an acre) on average because of the strength of the pound and falling grain prices.

National Farmers Union president Sir David Naish meets with Bank of England governor Eddie George next month to try to get help for the industry.

Bankers and farming industry leaders said thousand of rural jobs were at risk because of a huge fall in farm profits. Farm incomes are expected to decline by up to 20% this year. This would wipe about £800m from industry coffers.

The economic climate is not expected to improve until late next year. Many farmers are expected to shed workers after this years harvest.