Farmers' margins for this year's harvest are likely to be "squeezed" due to high costs and a "downward drift" in grain markets, said industry analysts.

The AHDB (Agriculture and Horticulture Development Board) has published its latest planting and variety survey, showing the UK wheat area for harvest 2023 is slightly lower than last year, due to additional barley and oilseed rape being sown.

In the Eastern region, the wheat area fell by 1pc to 454,000 hectares, while the barley area rose by 5pc to 194,000ha.

READ MORE: Norfolk farmers frustrated by rain delays during harvest

But the East bucked the national trend for oilseed rape, with a 27pc drop in area compared to an 11pc rise across the country.

The survey attributes this to reports of crop losses which "could give insight into why the spring barley areas have increased".

Senior AHDB analyst Anthony Speight said it remains a "hard time" for arable growers due to continued cost inflation and volatile grain markets.

"The UK harvest is here and it’s highly likely that gross margins for 2023 are going to be squeezed in comparison to 2022," he said.

"This season has been a high input year for farmers as inflation, energy prices and input costs have increased exponentially.

"Since winter crops have been sown, global grain markets have been on a downward drift as markets have adjusted, navigated and digested the war and geopolitics in the Black Sea.

"It’s a hard time for growers as cereal and oilseed prices are now lower than what they were when planting intentions were decided last year, and those peak marketing opportunities may have passed for 2023 harvest.

"However, with the war continuing in Ukraine, we are still in volatile and unknown times for commodity prices.

"As harvest 2023 starts, growers will have a clearer idea on their breakeven point. What I will say is take marketing opportunities and ride the short-term volatile highs when opportunities arise to market your crops."