Research by JCB Finance shows that customers in agriculture are continuing to invest and plan for the future, despite concerns over Government policy and taxation.
In a recent customer survey conducted by JCB Finance the predictions on business turnover were optimistic. Almost 50% of the respondents are predicting increases in the next 12 months, compared to only 27% when a similar survey was conducted in 2023. Most respondents said that they are planning for investment in plant and machinery over the next 12 months.
Further questions on the future outlook, identified the top concerns for the farm business over the next year. In order, the top three were: government policy, interest rates and taxation – all in fairly equal measure. Whereas in 2023, interest rates clearly dominated the minds of respondents.
Government policy overtakes interest charges as top concern:
Top 3 Concerns of Farming Customers | ||
% of respondents | 2023 | 2025 |
Policy | 32% | 62% |
Interest | 76% | 53% |
Tax | 19% | 51% |
JCB Finance conducted this survey as part of its regular assessment of their hire purchase and leasing products and customer satisfaction. A joint venture between J C Bamford Excavators and NatWest providing flexible funding solutions to UK agricultural businesses for 55 years, the business has stood by British Farmers through good times and bad. JCB Finance Sales Director, Nick Taylor said:
“Tailoring solutions to support customers through challenging times and providing peace of mind is what we do best, we’ve been structuring funding solutions our unique products like HP Plus and JCB FlexiLease which customers have taken advantage of to provide peace of mind and alternatives following the recent changes to taxation and support schemes”
The results compiled in June were not a surprise to Nick, he added:
“The significant changes to DEFRA schemes and Agricultural Property Relief on Inheritance Tax have not only affected many farming families, they’ve knocked their confidence in long term stability and access to support schemes, so to see these topics ranking at the top concerns comes as no surprise. Likewise, these results also reflect what we are discovering from many customer conversations – farming businesses are now planning more strategically for their future. Our nationwide team have been consulting with customers listening to their needs for today and the future and working on tailored asset-based finance solutions.”
On lowering carbon, 50% of respondents said that they will be renewing plant and machinery to more sustainable options within the next 5 years. This was split by 42% considering that climate will have a negative impact on business and 14% feel their business will be positively affected.
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