British farmer investing in robots to survive Starmer's tax

Summary

The transcript reflects the challenges faced by a dairy farm family, struggling with financial pressures, uncertain government policies, and ongoing difficulties like livestock diseases. Despite investing in robotic technology and diversifying their business, the farm is not generating enough profit to sustain itself. Concerns about inheritance tax policies, government indifference, and future sustainability add to their worries. The farmer stresses the importance of caring for the land, animals, and the environment, but emphasizes that without proper support and recognition, the future of farming and family-owned farms is uncertain.

Takeaways

• 😀 Dairy farming is a generational tradition but faces increasing uncertainty and financial strain.
• 😀 The costs of farming have risen significantly, with recent feed purchases alone amounting to £80,000-£90,000.
• 😀 The uncertain nature of farming, including external factors like disease and regulatory changes, poses constant challenges.
• 😀 The farm's profitability is low, with £130 per acre being insufficient for sustaining the business without additional investments.
• 😀 Diversification into other businesses is necessary to sustain the farm, as farming alone doesn't generate enough income.
• 😀 Significant investments have been made in new technology, like robotic systems, to streamline operations and reduce labor needs.
• 😀 The personal passion for farming and its varied, physical nature is a driving force, even amid challenges.
• 😀 Inheritance and estate planning issues, especially under new government policies, are creating additional stress for farmers.
• 😀 There is uncertainty regarding the impact of inheritance tax and government policies, leading to difficulties in planning for the future.
• 😀 The government’s lack of understanding or care for the struggles farmers face, including issues like TB and regulations, is a key concern.
• 😀 Policies like inheritance tax may push more farmers out of business, reducing the number of those who can continue to farm sustainably.

Q & A

What is the speaker's primary concern about the future of their farm?

The speaker is concerned about the financial instability and the increasing uncertainty in farming, particularly due to external pressures such as government policies, disease outbreaks like TB, and inheritance tax laws.

How has the recent autumn affected the farming operations?

The recent autumn had a negative impact as the farm did virtually no autumn planting, which led to the need to purchase all the feed for the cows, costing the farm an additional £80,000 to £90,000.

What role does diversification play in the speaker's ability to maintain the farm?

Diversification plays a crucial role, as the speaker mentions that the investment in diverse businesses helps sustain the farm's finances, as farming itself is not generating sufficient profit.

What challenges does the speaker face with labor on the farm?

The speaker discusses how labor has been a significant challenge, particularly with their parents facing issues. As a result, the speaker has taken on bookkeeping responsibilities to help manage the farm.

How does the speaker feel about the government's handling of farming policies?

The speaker is frustrated with the government, stating that current policies, particularly regarding inheritance tax, are damaging and are not supportive of farming families. They feel that the government is either indifferent or unaware of the struggles farmers face.

What is the impact of the inheritance tax policy on the farm's future?

The inheritance tax policy is seen as a major challenge for farmers, as it complicates the ability to pass the farm down to the next generation. The speaker feels it will make it much harder for farming families to continue their businesses.

How does the speaker describe the financial returns from farming?

The speaker explains that the financial return from farming is very low, with farm profits working out to approximately £130 per acre, which is insufficient to cover the investment required to run the farm.

What role do robots play in the farm's operations?

Robots are a significant investment for the farm, with the speaker mentioning robotic systems for scraping, which help reduce labor costs and improve efficiency, but require substantial financial investment.

How does the speaker feel about the environmental and ethical responsibilities of farming?

The speaker expresses a strong commitment to looking after the land, animals, and environment, emphasizing that they are working to produce a good product while being mindful of the sustainability of the land and the well-being of the animals.

What is the speaker's perspective on the future of farming?

The speaker feels uncertain about the future of farming, especially in light of restrictive regulations, potential policy changes, and the financial pressures that farmers face. They are concerned that these challenges will push many farmers out of business.