Speaking in Edinburgh yesterday, he said: “As last week’s Pre-Budget Report made clear, there is a massive recovery process to be negotiated and it would be naïve to think that agriculture will be immune from the effects of this.

“While I don’t believe in allowing negativity to drive business plans or actions, there’s no point in allowing projections to be based on anything other than the facts as we see them.”

According to Douglas, farming has so far avoided the worst impacts of the recession and we can expect a measure of this “essential status” value to continue during the recovery process.

“There is however, no escaping the pressures of the marketplace, such as reduced consumer spending and the effects of the fiscal measures which the Chancellor began to unveil last week,” he said.

“Increased taxation, coupled with spending cuts, is the business environment in which producers will be operating for the next few years, factors which will put a premium on good forward planning and management”, he added.

Market round-up

CRAIG Wilson’s sale of prime and cast sheep at Ayr yesterday saw 1887 prime lambs sell to a top of £87 for Texels and to 192.9p/kg, also for Texels and averaged 165.6p/kg or £71.74 (+£2).

Four hundred and fourteen cast sheep were short of requirements and sold to new levels. Twenty-five rams sold to £145 and averaged £103. Suffolk ewes sold to £131, Texels £125, Cheviot £72 and Blackfaces £74.

John Swan Ltd sold 58 prime bullocks at St Boswells yesterday to 201p/kg and averaged 174.1p (-8p on the week), while 104 heifers sold to 200p and averaged 172.3p (-8.1p on the week).

Seventy-nine beef type OTM cattle averaged 107.4p and sold to 107p.

The 3125 prime lambs averaged 172.8p (+1.4p on the week) and sold to £120 for the Champions, Texel crosses.

The 1079 ewes averaged £61.21 and sold to £127.

Cumberland & Dumfriesshire Farmers Mart sold 103 store cattle at Dumfries yesterday, when heifers sold to 202.9p/kg for Blue Greys and averaged 160.6p, while bullocks sold to 198.8p and averaged 159.6p.

Young bulls sold to 178.5p/kg for Limousins and 175p for Charolais.