Some 430 agricultural businesses in Yorkshire are at a higher than normal risk of insolvency compared to last month, according to new research.
The figure represents a 7.4 percent rise in the level of agricultural businesses in the region that are now considered to be at higher risk.
However, the analysis by insolvency and restructuring trade body R3 did find that just 23.5 percent of agricultural businesses in Yorkshire are considered to be at higher than normal risk of insolvency, below the UK average of 24.3 percent.
Of the 12 regions surveyed, only the East of England (21 percent), Scotland (21.2 percent) and East Midlands (21.5 percent) had lower levels of agricultural businesses in the overall negative band.
Eleanor Temple, chairwoman of R3 in Yorkshire, said: “While agriculture in Yorkshire appears to be fairly resilient, there are still some challenges for the sector. Notably, the advisory body to British farmers, the Agriculture and Development Board, has warned about the impact of Brexit on farming incomes in the event of a ‘no deal’. The sector will have to adapt to any loss of subsidies or new competition from non-EU producers.”
Ms Temple, who is also a barrister at Kings Chambers in Leeds, added: “Whatever the industry or business, ensuring that you keep a close eye on cash flow and seek professional advice at the first sign of trouble will be vital to weathering the storm.”
Overall across the broader economy, R3’s latest research shows that, this month, Yorkshire saw an overall rise of 3.8 percent in levels of businesses across all sectors considered to be at higher than normal risk, slightly below the national average of 3.9 percent.