AFTER a tough couple of years, confidence in the prospects of the English beef and lamb sector is rising, with 56pc of farmers planning to invest in their businesses this year, according to a survey by Eblex.

Of those planning to improve their farm 62pc said they would invest in buildings, 50pc in machinery and 47pc in their flock or herd. Some planned to invest in more than one area. Meanwhile, 64pc of abattoirs, and the same percentage of auction marts, planned to invest over the coming months, significantly up from 54pc last year.

Nick Allen, Eblex sector director, said: “The survey is just a modest snapshot but it is encouraging that there does seem to be greater optimism there for the future, particularly, it is fair to say, among the larger operators.

“We have had some very tough weather conditions over the past couple of years, among a raft of other challenges, and times remain tough for the sector. Our Stocktake report shows just how tight margins are for many, but businesses can make a good return by operating efficiently, with good husbandry and marketing animals to hit peak industry specification.

“We operate in a global market and prices do go up and down, but the overall trend remains positive if you look at the longer-term picture.”

Peter Garbutt, chief livestock adviser at the NFU, said the results matched their own survey into farmer confidence.

He said: “Of course, a more optimistic outlook doesn’t mean that there aren’t still significant challenges to face to generate returns from the market, deal with the level of volatility and cope with the increasing red tape that farmers face.

“The real sign of an increase in long-term confidence will be an increase in livestock numbers in the UK, but these results are encouraging for the sector.”

The Eblex survey also found 75pc of those who had attended a Better Returns Programme (BRP) event in the past 12 months had made a change to their business practices as a result, and 70pc rated the information they received as good or very good.

Also, 65pc are now recording their costs of production, up from 60pc last year, with more than half of producers questioned being members of a farm assurance scheme.

A total of 200 farmers, 25 abattoirs and 25 auction marts were interviewed.