More than two thirds of farmers and agricultural suppliers are optimistic about the performance of the sector in the next 12 months, according to a survey by advisory firm, MHA Broomfield Alexander.

Carried out at the Royal Welsh Agricultural Show at the end of July, 69 per cent of respondents to the annual survey said they felt optimistic for the year ahead, a significant increase from last year where 44 per cent reported being optimistic.

The figure is a peak in the three years that the survey has been conducted.

Meanwhile, those reporting feeling pessimistic about the sector’s fortunes fell by more than half, from 26 per cent in 2017 to 12 per cent this year.

With less than nine months left until the UK leaves the European Union, respondents were also asked what impact they think Brexit will have on their business.

In contrast to last year’s survey, this year’s findings showed that positivity outstripped negativity, with 41 per cent of those who responded saying they think Brexit will have a positive impact – up from 35 per cent last year.

Those who thought the UK’s withdrawal will have a negative impact fell 10 points to 28 per cent, while 31 per cent felt there would be no change at all.

Sarah Curzon, director at MHA Broomfield Alexander, said: “The timing of the survey is crucial and has always correlated with major political events – including, in the past, the EU referendum and the snap general election – which helps us garner the most reactive and topical feedback. This year, the survey was conducted after a commitment from Welsh Government to protect agricultural support payments, at least in the short term.

“Also, just weeks before the survey, the prime minister revealed her Chequers plan for Britain’s future relationship with the EU which gave an outline as to what trading links we might expect as negotiations continue.”

When asked about raising funding in the next 12 months, the response was consistent with the findings of the past two years; 64 per cent of respondents said they weren’t considering raising funding, while 36 per cent said they were. Yet when people were asked for the first time in this survey about plans to expand in the coming 12 months, 64 per cent said they were looking to expand compared to 36 per cent who said they had no plans.

In similar figures to last year, 58 per cent of respondents said they had no plans to diversify in the 12 months ahead, a small increase of four per cent on 2017.

The numbers of those planning to diversify their business fell from 48 per cent to 42 per cent.

Turning to succession planning, 71 per cent of respondents said that succession was a concern for them, with seven per cent of them saying it was a ‘great concern.’ Just over a quarter (28 per cent) of those responding had no concerns about succession planning.

Sarah said: “With a high number of respondents looking to expand their businesses in the coming year, it is clear that there is a high degree of confidence in the sector which is to be welcomed. The fact that a majority, however, aren’t looking to raise funds externally could prove a significant challenge."