Learning Points from 2024: Key Insights for Agriculture Going into 2025

From navigating ongoing economic pressures and a changing political landscape to embracing new technologies and sustainable practices, the year has highlighted areas where the sector is evolving and areas where more focus is needed. A lot remains uncertain with a new government, and the industry is understandably eager to understand what this will entail at farm level.

Economic Pressures and the Cost of Living Crisis

The financial pressures of 2024 have been a stark reminder of how closely agriculture is tied to the wider economy. With inflation, input costs—such as fuel, feed, and fertiliser—have remained high. This has not necessarily translated into an increased commodity price to farmers in the same way it did in say 2022, albeit some sectors have seen increases.

Extreme weather continues to add to this financial pressure as farmers continue to report greater challenges, evidenced by the wettest October on record and the driest February in 30 years. With 2025 starting with widespread flooding this appears to be the new norm.

For farmers, the lesson here is the importance of adaptability and financial planning. Diversifying income streams, investing in cost-efficient technologies, and making use of government support schemes like subsidies or grants are all strategies that have helped mitigate some of the pressure. However, it’s also clear that forward-thinking financial management will be essential in 2025, especially as we face further uncertainty with global supply chain disruptions and geopolitical tensions.

Sustainability: The Need for a Balanced Approach

Sustainability continues to be a dominant theme in agriculture, with increasing pressure from both consumers and regulators to adopt environmentally friendly practices. 2024 saw several new government initiatives aimed at improving environmental outcomes. As the Basic Payment Scheme continues to be cut more and more farmers are enrolling in environmental schemes, the vast majority of these with arable enterprises.

However, the year also highlighted the challenges of balancing sustainability with profitability. While the transition to more sustainable practices is essential for the long-term health of the sector, it requires significant investment. The cost of implementing environmental improvements, whether through reducing emissions, switching to renewable energy, or adopting precision farming technologies, can be a barrier, particularly for smaller operations.

Looking to 2025, farmers must focus on finding a balance between green initiatives and financial sustainability. The key will be to embrace technologies that offer both environmental and economic benefits—such as soil health monitoring, efficient irrigation systems, and energy-saving machinery. There are also funding opportunities that could help with the transition to sustainable farming practices, but farmers will need to ensure that any investment aligns with their long-term business objectives.

Technology and Digital Transformation

The agriculture sector’s embrace of technology has been one of the most encouraging developments in 2024. From precision farming to drones for crop monitoring and the rise of artificial intelligence in livestock management, technology is transforming the way farming operates.

Yet, while 2024 saw an acceleration in the adoption of tech solutions, the learning point here is the need for education and training to ensure farmers are equipped to fully benefit from these innovations. Technology can only offer value if it is integrated into daily operations effectively. There has been a noticeable skills gap, particularly in rural areas where access to training is limited. In 2025, greater emphasis needs to be placed on upskilling the workforce and ensuring farmers have access to the right tools, data, and advice to make informed decisions.

As digital platforms for farm management continue to evolve, farmers should look beyond the hype and focus on technologies that deliver tangible, measurable benefits—whether in terms of yield improvements, cost reductions, or risk management.

Jon Hercman is the Head of Agriculture at Haydock Finance, a leading provider of financial solutions for the agricultural sector. With years of experience working with farmers, Jon is committed to supporting the sector in navigating financial challenges and embracing future opportunities.