Agri Market Outlook: The long view

July 2022

The most notable feasture of the UK economy in 2022 has been inflation, leading to a cost of living crisis. At the time of writing, the UK economy looks likely to be the worst affected by the current global economic crisis compared to the rest of Europe.

To examine what is likely to happen with the key variables, economic growth, unemployment and inflation, our Economic Outlook examines what could be expected through the remaineder of 2022.

What does 2022 hold for the UK economy? It is not only experiencing the aftershocks of EU Exit but also the massive impact of the energy crisis and the ripple effects of the conflict in Ukraine.  The agricultural industry has been particularly hard hit in a number of areas, with soaring input cost inflation the most notable impact so far.

In the meantime, shifts in domestic agricultural and trade policy continues to take shape. We know that broader environmental policies will continue to shape our industry and impact on both its profitability and productivity, while new trade deals will provide both challenges and opportunities for our agricultural sectors. 

The latest information and analysis on how both emerging policy and trade deals will affect farming businesses can be found in the Trade and Policy section of our website.

The government in England has announced three future environmental schemes to replace the current Basic Payment Scheme. The most up-to-date information on each of the schemes is available here.