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More than eight in 10 farmers are struggling to plan for the future amid mounting uncertainty.
The finding comes from McCain Foods GB&I’s second annual Farmdex report, which highlights the growing difficulties faced by British farmers as they contend with unpredictable weather, rising costs and unclear policy direction.
The Farmdex report, published on Wednesday, October 7, gives farmers a platform to share their current experiences and challenges, offering insight into the state of the sector and the support required to build long-term resilience.
James Young, vice president of agriculture at 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.
"The global picture is tumultuous and domestically it has been one of the hottest, driest summers on record.
"No single group can secure the future of British farming alone.
"Farmers, businesses, industry bodies and policymakers all have a role to play in giving farmers greater certainty, creating a level playing field, and driving long-term investment.
"If we get that right, we can support profitable farms today while building a resilient food system for generations to come."
This year’s report paints a picture of a sector under considerable strain.
According to the findings, 86 per cent of farmers believe policy uncertainty is negatively impacting their operations, while 74 per cent say increasingly erratic weather is making farm management more difficult.
Rising input costs remain a major concern for 87 per cent of respondents, who say these costs have significantly affected their profitability over the past year.
Financial pressures are leading to tough decisions for many.
More than a quarter of farmers reported making a loss or breaking even in the past year, while 29 per cent achieved only one to five per cent profit.
Two in five have considered leaving the industry due to financial constraints, and 40 per cent are unsure if they will still be farming a decade from now.
This uncertainty is also shaping attitudes toward the UK’s long-term food security.
Just five per cent of farmers are optimistic about the country’s ability to secure future food supplies, while 87 per cent express concern about reliance on imports and the difficulties of remaining competitive.
A clear majority, 91 per cent, believe greater investment in UK agriculture is essential to protect long-term food security.
Farmers also stress the need for practical support and long-term certainty, with 61 per cent saying that improved profitability through government support would boost their confidence to invest.
Additionally, 47 per cent call for simpler application and compliance processes.
Trade policy has emerged as the top priority for 53 per cent of farmers, up from 44 per cent last year.
Many are worried that cheaper imports produced to lower standards are undermining British products, profitability, and food security.
Environmental concerns also loom large.
A record-breaking drought has placed climate change at the centre of the agenda, with 27 per cent citing it as one of the biggest pressures on their finances and 34 per cent seeing it as a major long-term threat to the industry.
Despite these challenges, 64 per cent of farmers agree that sustainable practices are vital to the future of farming, and 65 per cent have invested in sustainability over the past five years.
Notably, those who have invested significantly in sustainability are twice as optimistic about the future of British farming.
In response to the findings, McCain Foods is urging the government, industry and partners to commit to greater investment and focus on food and farming.
The company is calling for wider adoption of regenerative farming practices, prioritisation of water resilience, and fair trade agreements that require imports to meet the same standards as British produce.