The Manx National Farmers Union has warned that a proposed 9.9% increase in the minimum wage could further undermine the viability of agriculture on the Isle of Man.
This is unless it is accompanied by targeted support and cost mitigation measures.
In a statement submitted to Members of Tynwald following the minimum wage debate on December 5, 2025, the MNFU said it had undertaken further consultation with its membership, concluding that the scale of the increase would place additional strain on an industry already facing economic contraction.
The union said agriculture and food production on the island are operating under mounting pressures, including rising costs, changing trade conditions on and off the island, and increasingly narrow profit margins.
Against this backdrop, it warned that introducing a significant minimum wage rise without relief on National Insurance contributions, income tax thresholds, or other sector-specific support would “further stifle” the industry’s viability and sustainability.
Without Mitigation
“Without mitigation for the island’s food-producing sector, this will rapidly further the decline of the industry,” the statement said, adding that the timing was particularly concerning given the importance of halting and reversing falling domestic food production to protect long-term food security.
While the MNFU stressed that it supports fair pay and good standards of living for workers, it highlighted the unique structure of agriculture, which relies on a mix of permanent, temporary, and trainee labour.
The union warned that higher wage costs could discourage farms from employing apprentices, trainees, and young entrants. At a time when the sector is already dominated by an ageing workforce.
One farmer cited by the union recalled receiving around £200 per week in wage support for an agricultural apprentice a decade ago, a scheme which no longer exists
“Without that assistance, combined with the proposed increase to the minimum wage, it will become increasingly difficult for businesses to justify employing and developing new workers,” the farmer said, warning this could limit growth and accelerate workforce ageing.
Knock on Effects
The MNFU also raised concerns about knock-on effects across the food supply chain.
Isle of Man Creamery has estimated the wage increase would add around 1p per litre to processing costs, equating to an additional £200,000 annually.
Although the Creamery already pays above the minimum wage, the union noted that pay differentials would need to be maintained, pushing overall wage bills higher.
Questions were also raised about whether processors such as Isle of Man Meats would be able, or willing, to absorb higher production costs by paying farmers more for their produce.
Several members highlighted that many farmers already earn less than the minimum wage when long working hours are taken into account.
Others warned that farms employing staff may be forced to reduce their workforce or accept further reductions in personal income, while processors may pass costs on to consumers through higher prices.
Very Expensive
One business said the combined cost of wages, National Insurance, and holiday pay makes inexperienced workers “very expensive” relative to returns in agriculture.
Another enterprise that regularly employs school leavers warned it may reconsider employing two young workers currently on its books if no changes are made, describing the impact on young people entering agriculture as “devastating”.
The union also pointed to wider cost increases across inputs such as feed, haulage, veterinary services, and contracting, arguing these cumulative pressures could make price rises unmanageable or force businesses to operate at a loss.
While government support packages have been discussed for other “high-risk” sectors such as hospitality and care, the MNFU said agriculture once again appeared to have been overlooked.
The statement concluded by urging Tynwald and the Isle of Man Government to include agriculture in employment-related considerations, revisit apprenticeship schemes, and provide meaningful support for farm businesses employing and training new entrants.
“For future economic stability and food security,” the union said, “the pressures on the agricultural industry must be addressed as a matter of urgency.”
