FARMER confidence in the dairy and livestock sectors has risen over the last year, according to a survey by the NFU.

The two saw their confidence rise by 28 and 15 points respectively after the falling £, increased commodity prices and export levels created a more favourable environment for those sectors.

However, confidence fell in the horticulture and poultry sectors where there are serious concerns about the prospect of future labour shortages and increase in the National Living Wage.

Despite short-term improvements, arable farmers’ confidence is still negative (-2 points) with the majority of arable respondents having a negative outlook for the year ahead.

The survey found farmers’ confidence for the next three years had taken a knock with a 6 point drop. The Brexit vote has left farmers uncertain how agricultural policy and future trade arrangements with the EU and third countries will look moving forward.

Respondents anticipated positive effects on their business from the consumption levels of British produce and output prices.

However, farmers felt input prices will have the most widespread negative impact for the coming year, followed by regulation and legislation.

Forty two per cent had requested a form of lending over the past two years but their confidence in bank support for future borrowing was at its lowest since 2013.

The survey also found renewable energy diversification had grown steadily over the past three years, from 30 per cent in 2015 to 35 per cent in 2016, with solar electricity and biomass heating the most popular.

Meurig Raymond, NFU president, said: "The NFU has made it clear that for farming to have a profitable and productive future we need reassurance on key issues resulting from Brexit; such as access to a competent and reliable workforce and the best possible access to the Single Market.

"It is clear that farm businesses still remain under pressure and this survey demonstrates a dependence on borrowing from banks which is concerning. We have recently met with senior bank officials and will continue our discussions to make sure they understand the concerns of the farmer on the ground.

"British farming is the bedrock of the UK’s largest manufacturing sector – food and drink. The sector is worth £108 billion to the nation’s economy and employs some 3.9 million people. We urge Government, retailers and the public to back British farming so we can continue to produce high quality produce for the nation."