Uncertainty holding back farm businesses with red tape also stifling growth
Despite the rise, farms still lag behind other smaller businesses when it comes to market uncertainty, with 39 per cent of general businesses saying it is a barrier to growth.
Red tape is a growth barrier for 32 per cent of farmers; twice the rate of general businesses. Meanwhile, volatile cashflow is a concern for 28 per cent of farmers, double the general rate.
Perhaps unsurprisingly, four times as many farmers than other businesses see unpredictable weather as a growth barrier, although the rate has dropped from 41 per cent in the second quarter of 2019 to 28 per cent now.
Farmers are also more fearful of the value of sterling and restrictive bank lending policies than other businesses.
Gavin Wraith-Carter, managing director of Hitachi Capital Business Finance, said: “Market uncertainty continues to be a barrier to growth for small business leaders in the agricultural sector, along with volatile cashflow, which is often a reflection of an uncertain market.