Drought may cost UK farmers £400m

By Rowena Mason
4 Jun 2011 The likely shortage of wheat and barley next season is already causing wholesale prices to rise, with a knock-on effect on the price of bread and beer. This spring’s lack of rainfall is severely affecting crops, particularly in the east of England, where wheat and malting barley are wilting and failing to grow to full size. The National Farmers Union is expecting to hear this week that East Anglia is officially suffering a drought, with some areas getting only 10pc of their usual rainfall since March. A spokesman for the Environment Agency said a decision would be made over the next couple of days, based on rainfall, river flows, ground water, impacts and weather forecasts. “Parts of East Anglia may next week be scaled up from potential drought to drought status, if the forecasts are correct,” he said. Scientists are assessing the evidence provided by water companies, farmers and experts. Estimates suggest that Britain’s yields of combinable crops – such as wheat and barley – will be 10pc lower overall this year, although the figure will be much higher in the driest areas. Total farm gate prices for the UK’s combinable crops is £4bn, giving lost yields worth around £400m. Britain’s wheat crop usually generates about 17m tonnes of harvest per year and is currently selling at farm gate prices above £200 per tonne. Around a third of the crop is grown in East Anglia, where the dryness has been most severe.