Published on : Jun 11, 2014
Yorkshire has the best performing agricultural sectors in Wales and England. These regions are showing strong signs for economic recovery after the recession, suggests new research by insolvency experts.
According to the financial trade body R3, about 13 percent of the region’s agricultural businesses have posed more than normal risk of insolvency. In over the last six months, the levels of agricultural distress have dropped drastically, further falling by almost three percent since April. Around 203 agricultural businesses have been identified as high risk businesses in May out of 1,472 active companies.
Many livelihoods in Yorkshire still depend on the land, farming enterprises that are now beginning to recover, expressed William Ballmann, the firm’s chairman of insolvency and partner at national law firm Gateley LLP. There have been raving concerns from consumers regarding the food provenance, including increased focus on organic farming. The resurgence in the agricultural industry is an indication that farmers are beginning to make profits from the growing demand for quality and local produce.
William also added that the R3’s research has not given a clear picture as to why Yorkshire’s agricultural sector is overtaking the industry in different areas; however, he added that there are many other challenges for farmers such as increasing competitive supermarket price wars.
Farmers are still facing difficulties in production margins in the cuts to milk and beef, but agricultural sector has proven resilient in the global economic term period over the recent years.
The National Farmers’ Union highlights certain figures of the industry’s contribution to the UK economy that were seen to be increased by 54 per cent in five years – in the forecast 2007 and 2012. Even the rural economy is starting to turn a corner in the industry and is picking up again almost after a year, said the Country Land and Business Association’s regional director for the North, Dorothy Fairburn.
Confidence is the ultimate key for converting laid off agricultural buildings into offices, homes, and work spaces.