The outlook for the cereals sector is good for the coming year, according to industry analysts.
It was forecast by Farmers Weekly and the business consultants Andersons that farmers will have benefit from lower crop prices.
In addition, they will be able to lower the costs of production for the period.
One way to do this could be to invest in new machinery that makes production more efficient.
According to their analysis, there will be a "relatively" small increase in the EU and UK cereals area for the coming year.
This will keep prices firm and low, with a historically low carry-over of wheat.
Consultant Sebastian Graff-Baker commented that businesses need to consider how they will invest higher returns from lower crop prices.
The "default option" when it comes to spending returns is often machinery, which could aid increased production.
In a separate economic analysis this week, the Independent's economics editor Sean O'Grady said that crop prices are likely to be hit by the bad
weather.
