Rodney Cordingley, Director at StephensonsRural, shares his perspective on the current challenges facing farm profitability… and why land values in Yorkshire remain surprisingly resilient.
Thirty-three per cent of farmers are making a loss, 39% are breaking even, and just 27% are turning a profit. These are not UK figures; they’re from New Zealand, where farming operates without direct government support and is reliant on world prices.
We don’t have directly comparable figures here, but former NFU President Minette Batters has been commissioned by Department for Environment, Food & Rural Affairs (Defra) to carry out her own study of farm profitability in England. She has asked for initial responses by 11 July 2025.
Talking to cereal farmers in Yorkshire at present, there is certainly doom and gloom about current profitability, and about future prospects unless prices improve. Current prices clearly show we are in a world market for cereals.
Recent figures from Defra show the total output of UK farming last year as follows:
- Livestock output 52%
- Crop output 30%
- Agricultural support 8%
- Diversification etc 10%
This probably explains why the land market in Yorkshire remains firm. It isn’t totally reliant on cereal farmers or agricultural support. Many businesses do not depend on cereal production for profitability. The market is also supported by farmers with other business interests, or those reinvesting proceeds from development land sales.
With central government continuing to push for more development, and more renewable energy schemes coming forward, that demand looks set to continue. Supply may increase, but with total debt in farming at just 5.5% of total asset value, we are unlikely to see an avalanche.
Proposed Inheritance Tax reforms have not put off farmers buying more land, but they have encouraged more positive action around succession planning.
If you're considering a land sale or would like to discuss current values, get in touch with Rod Cordingley and the StephensonsRural team. For current land availability, check out our sales pages.