A quarter of Swedish farmers have reduced their agricultural activities in recent months due to rising costs. Four out of ten plan to do the same later this year. This emerges from a member survey conducted by the large Swedish Farmers' Federation LRF in early January.
Eight out of ten farmers said the cost crisis has affected their business negatively or very negatively. This confirms that the situation has shifted from worrying to serious, says Farmers' Federation chairman Palle Borgström of LRF in a press release.
The consequence will be that we will have to increase our imports from countries that produce food in a less sustainable manner. Moreover, our supply security decreases, especially in these geopolitically difficult times, says Borgström.
LRF already noted in November that the ever-increasing prices of electricity, fuel, feed, and fertilizer among other things were putting severe pressure on Swedish farmers and that this could become an emerging food crisis. In November, LRF estimated that the rising prices would burden Swedish agriculture by an additional 4.1 billion Swedish Kronor annually.
Now, two months later, prices continue to rise. According to new calculations by the agricultural union, expenses have increased by just over SEK 1.5 billion more and now stand at SEK 5.7 billion.
The economy in Swedish agriculture has long been our Achilles' heel in our work for a sustainable future. Despite having one of the world's most animal-friendly and climate-smart farms, we cannot get the economy aligned. Now that such a cost shock has hit us, there are no profit margins left.
This is not good for the individual entrepreneur nor for sustainable agricultural farming, says Palle Borgström. The coming week, the chairman of the Farmers' Federation will again meet with Minister for Rural Affairs Anna-Caren Sätherberg, where the income side will also be discussed.
The Federation of Swedish Farmers is an interest organization for the green industry with about 140,000 individual members. Together they represent around 70,000 enterprises, making LRF the largest organization for small businesses in Sweden. Almost all cooperatives within Swedish agriculture and forestry are also members.