Farmers are more confident of business survival than any other small business sectors, according to a survey by Hitachi Capital Business Finance.
It found 12 per cent of farming businesses said it will be a struggle to survive, which compares to an average of 30 per cent for all small businesses.
The rate jumps to 51 per cent in the hospitality and leisure sector and 40 per cent in retail (mainly smaller non-food shops).
Although farmers are still more confident than others, they still expect their businesses to be impacted by the virus, with just 18 predicting growth compared to 30 per cent in the first quarter of 2020.
Nearly a quarter of farmers believe their businesses will contract.
The pressure on the restaurant and hospitality sectors will also cause farmers concern because of the volume of food sold out of home.
“The current climate though has brought a sudden and seismic shift in confidence and outlook,” said Gavin Wraith-Carter, managing director at Hitachi Capital Business Finance.
“Many small businesses have been unable to trade and many are having to revise growth forecasts as the whole supply chain has been shaken by the current period of lockdown. Whilst we expected to see a big fall in confidence for this quarter, the true test will be if and how it recovers during the summer months.
"The fact that only 1 per cent of small businesses have permanently closed their doors suggests the majority will bounce back.”