Our Rural Sentiment Survey reveals Covid-19 impact
The results of our 2020 Rural Sentiment Survey* reveal the impact of Covid-19 on landowners and other rural businesses
3 minutes to read
Diversify, diversify has been the mantra for rural businesses for some time now, but Covid-19 has ruthlessly exposed how those reliant on certain sectors can see their incomes plummet overnight.
Almost 80% of our survey’s respondents believe their profits will fall in 2020, 35% of them significantly. Those estates relying on traditional sources of income say they are less affected, but those with large tourism or leisure enterprises are hurting badly.
"If, by 1 July, we have been unable to open to visitors, we fear many staff will be made redundant"
_Survey respondent, May 2020
Just under 40% of those taking the survey said they had shut down elements of their businesses, while a similar proportion said tenants were struggling to pay their rents. Four out of ten had furloughed staff, but only 3% had resorted to redundancies and fewer than 8% believed their long-term viability was under threat, although an extended lockdown could change that.
Some businesses, though, said the crisis had forced them to make their company more efficient and a number reported a potential rise in profits. A desire to shop locally and supermarket supply chain issues have boosted footfall at farm shops and butcheries.
While 64% think this trend will continue with the public placing more value on locally produced food once the current crisis passes, they are less certain those in power will follow suit. Over 70% of respondents believe the government, in light of the pandemic, should put more emphasis on food security, but only 20% believe that will actually happen.
"Quality, welfare, providence, food miles and bio-security all simply get lip service."
_Survey respondent, May 2020
One thing the majority of those taking the survey don’t want to happen, contrary to calls from rural lobby groups, is for Covid-19 to be used as a reason to extend the UK’s Brexit transition period, which runs to the end of the year. “That would just lead to more uncertainty,” points out one respondent.
*The survey was conducted between 29 April and 4 May 2020
Read on for more results from our Sentiment Survey
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How has Covid-19 affected your business?
(Answers are not mutually exclusive)
| We have had to furlough staff |
39% |
| It has hit our tenant's ability to pay their rent |
39% |
| We have had to shut down elements of our business |
38% |
| We have had to put expansion plans on hold |
33% |
| We have found it difficult to find contractors |
25% |
| Poor broadband and mobile connectivity has been as issue |
21% |
| We have had to cut salaries |
9% |
| It has had a positive impact on our business |
8% |
| We are receiving lower prices for what we sell |
7% |
| We have struggled to find enough labour |
6% |
| We have had issues accessing funding or finance |
4% |
In light of Covid-19 should the government ask for an extension to the Brexit transition period?
| Yes |
30% |
| No |
56% |
| Not sure |
14% |
Which other issues have negatively affected your business over the past 12 months or are likely to do so over the next 12?
(Answers are not mutually exclusive)
| Poor broadband or mobile signal |
46% |
| Planning issues |
46% |
| Fly tipping |
43% |
| Impact of leaving EU |
34% |
| Commodity and market prices |
32% |
| Rural crime |
27% |
| Inheritance tax issues |
16% |
Thinking about the future of the rural business sector in light of Covid-19 which statements do you agree with?
(Answers are not mutually exclusive)
| The government should put more emphasis on food security |
71% |
| The government will put more emphasis on food security |
20% |
| The public will place more value on locally produced food |
64% |
| People will be keener to support local businesses |
65% |
| People will be more likely to holiday in the UK |
77% |
| The mental and physical well-being opportunities of the countryside will be more greatly appreciated |
73% |
| More people will recognise the role rural landowners play in local communities |
29% |