UK Farmers Doing OK…

Britain’s farmers are doing well, despite the challenging times, as the country’s currency remains weak and strong prices for agricultural products remain steady along with falling input costs, Reuters reports. Total income from farming in the UK for 2008 rose by 41.9% to 3.46 billion pounds (USD$5.67 billion), according to government data.

Many expect farm income to remain strong this year, boosted by the overall weakening in the value of the pound against the euro, which has boosted European Union (EU) support payments and agricultural prices. Farmers have also received a boost with a sharp decline in the cost of fertilizers such as ammonium nitrate.

An all-time high of 17,300 tractors were purchased in the UK last year, and this year sales should be similar. Farmers in Britain are, however, having to pay higher prices with the UK market mainly supplied by manufacturing facilities based in the euro zone. “We are seeing an upbeat market and people spending on equipment that is slightly inflated because of the (exchange rate) change,” said Richard Shelton, AGCO’s UK-based sales manager. “Cheaper finance rates were helping to boost sales.”