FarmWeb News – 20/03/2019

FarmWeb News – 20/03/2019

£5.7m of funding has been allocated to help stamp out BVD, a disease amongst cattle that is estimated to cost the industry over £60m per year in lost performance with 90% of herds having had exposure to it. The campaign will be led by 120 veterinary practices across England covering up to 8,000 farmers.

Singapore is the latest target for UK agricultural exports, post-Brexit, with an increased presence at a recent meat and dairy exhibition. Singapore is already the UK’s largest trading partner in the area with two-thirds of exports, to the region, flowing through it. Dairy exports rose by 55%, last year, to £7.8m with red meat products at £2.7m.

The latest figures on global pig meat exports shows more evidence of the importance of trade with non-EU countries for the sector. Exports to 97 countries grew by £19m to £490m in 2018 continuing a decade of sustained growth with China as the biggest customer. Exports to the EU rose slightly to £24m.

The rapid development of drone technology is making them more attractive to farmers. Drones are particularly effective for monitoring crops and animals and are relatively cheap. However, farmers are warned that they need to be aware of their legal and insurance liabilities when operating drones and how these will change if they carry out work for others on a commercial basis.

A survey of 43 police forces disclosed that there were 381 incidents of sheep rustling in 2018 involving almost 10,000 sheep, a rise of 6% on the previous year. The most worrying aspect was that only one prosecution was brought, by Herefordshire.

A consultation on strategic water planning indicates a shift in Government policy towards regional plans formulated by the stakeholders in the areas, in which farming representatives would play a part. Farming leaders have expressed concern at a proposal that water abstraction licences could be revoked, without compensation, if the environment was at risk.

FarmWeb News – 07/03/2019

Defra has released the Farm Business Income estimates for the year ending February 2019. These show that income from cereals rose by 13% but general cropping fell by 8%. Yields were affected by adverse weather conditions, but cereals benefited from higher prices. Dairy incomes were down by 22% and livestock farmers suffered falls of up to 29%.

Further concern is being expressed by UK farmers at potential competition from the USA, post Brexit. The US government has published its “negotiating objectives” calling for” comprehensive access” and the removal of “unwarranted barriers” in an uncompromising document. The USA has long complained about EU bans on its products because of its wider use of chemicals, hormones and GM.

The Ensus bioethanol plant which closed in November last year, due to “difficult market conditions” is to start production again. The closure hit local farmers who were supplying the cereals for production. It is planned to run at reduced capacity to deal with UK orders only. The industry is pressing the government for the introduction of E10 fuel with 10% bioethanol as opposed to the current 5%. The move has been delayed for some years, E10 is the current standard in other EU states.

The cost of livestock worrying to the agricultural industry exceeded £1.2m in 2018. Attacks by dogs remain at historically high levels with farms on urban fringes reporting multiple attacks. Allowing dogs to worry animals is an offence, Scottish farmers are calling for increased penalties after a 67% rise in attacks in two years.

In a bid to cut ground water pollution, Severn Trent has introduced a pesticide amnesty scheme. Disposal of banned and out-of-date chemicals is difficult, so Severn Trent is offering anonymous disposal facilities, to farmers, during March.

Farmers can now employ up to 2,500 non-EU migrant workers under a newly opened seasonal workers pilot scheme. The pilot will run until December 2020 allowing workers to be employed for up to six months. The soft fruit industry, which has grown dramatically in recent years, has been hardest hit by a decline in migrant workers from Europe, criticises the scheme as inadequate.

FarmWeb News – 28/02/2019

Agricultural Insurers are urging farmers to support the Red Tractor assurance scheme post-Brexit as a guarantee of quality and welfare standards. There is a need to protect the UK market against imports of goods that are sub-standard in terms of quality and welfare. There is concern about competition from the USA which is at odds with the UK on the use of GM, antibiotics and chemical sprays. Defra has said that a “zero-tariff” regime on food imports will not happen and protection for the industry will continue.

The UK organic produce market grew by 5.3% in 2018 to a record level of £2.33bn, accounting for over 1.5% of the total market. The results mark the seventh consecutive year of growth after some years of stagnation. However, the UK market lags behind other European countries where organic accounts for up to 10% of the market.

The British Veterinary Association is lobbying for improvements to animal welfare before, during and after movement. Animals should be slaughtered as close as possible to their home farm with mobile abattoirs servicing remote areas. Animals should not be exported to countries where the welfare standards are unknown or where they are lower than the UK.

An insurance product has been launched that offers farmers the opportunity to insure against financial loss caused by a fall in the price of major commodities or a rise in the cost of some inputs. The cover, called Stable, is placed at Lloyds.

Defra has issued guidance on the changes that are likely to occur to animal imports and exports in the event of a no-deal Brexit. The UK will become a “third country” and export health certificates will be needed. Defra is confident that the system will be in place before Brexit. The arrangements are of real concern to the sheep industry with around 30% of production exported, over 90% to EU countries.

Milk volumes in several European countries are lower than last year which has led to the market being relatively stable in the first part of this year. Against this background, Arla has announced that prices to its producers will remain unchanged for March.

There is a proposal in the Agriculture Bill for the phasing out of the direct Basic Payment, for it to be de-linked from the requirement to farm the land and for landowners to take the money as a one-off cash sum. Preliminary figures suggest the payment could be up to three times the annual amount, but further details are needed from Defra.

FarmWeb News – 14/02/2019

Farmers are being advised to consider growing miscanthus as an alternative crop in the light of future uncertainties. The crop is grown under contract and is used to fire renewable energy power stations supported by long-term government grants. Miscanthus grows well on poorer soils with minimum care and is harvested in the spring before the main cereal harvests.

The latest figures for farmland sales in England, in 2018, show that prices ranged from £4,575 to £15,000 an acre, affected as much by location, as quality. Arable land generally sold for between £8,000 and £10,000 an acre with average prices up by 2% on 2017. Farmers accounted for less than 50% of purchases with strong demand from investors and life-style buyers.

The global organic dairy market accounts for 20% of all organic food and drink sales and is forecast to grow by 50% over the next four years. In the UK demand has risen 3.1% year-on-year and the sector is a net exporter. This contrasts with the non-organic market where the UK remains a major importer.

The total income from farming in Scotland fell by 8% to £672m in 2018, according to the latest estimates from the Scottish Government. The figures also show a rise in costs of 5% and a fall in productivity for the third consecutive year.

The number of dairy herds, in Scotland, fell by 27 to 891 in 2018. This mirrors the trend in England and Wales. There were 5,735 herds, in Scotland, when records began in 1903. However, animal numbers have risen leading to an increase in the average herd size to 201.

The autumn 2018 planting of oilseed rape has had mixed success with 6.28% of the crop failing to establish. This equates to 36,000 hectares and compares to a failure rate of 1.62% for 2017. Southern areas have fared worst with lack of moisture and increased pest damage cited as the reasons. The latter made worse by the ban on neonicotinoid seed treatments.

The budget for Natural England has fallen from £242m to £100m in the last decade with staff numbers reduced from 2,500 to 1,500. The agency is struggling to maintain its role in overseeing environmental schemes and National Parks. Farmers complain of delays in stewardship payments and a lack of staff to give advice.

Recent data shows over 153,000 small and medium sized businesses (SMEs) in agriculture, forestry and fishing making up 9% of the UK total. SMEs account for over 50% of total revenue and 60% of private sector employment.

FarmWeb News – 24/01/2019

The Government’s new clean air strategy is set to impact on farmers. Agriculture is responsible for 88% of UK ammonia gas emissions which can be harmful to human health. Rules will be introduced relating to the safer storage and use of urea-based fertilisers, slurry and manure. Financial and practical help for farmers has been promised. The Royal Association of British Dairy Farmers has criticised the proposals forecasting that they will force many small farmers out of business.

The Rural Payments Agency paid out 93.4% of claims under the Basic Payments Scheme in December totalling £1.57bn. This is an improvement on the 91% paid out in 2017. Industry related insurers have called for bridging payments to be made to the 5,000+ farmers still waiting for their money and for action to clear old claims still outstanding after several years.

There are signs that the dairy market may be firming up again despite price reductions to producers in January. Stocks of skimmed milk powder held in intervention are expected to be cleared next month with prices up by 7%. This is forecast to have a positive impact on prices for fresh milk, a view supported by Arla which has announced that prices to producers will be unchanged for February.

The Livestock Information Service is due to be launched this year and will provide the foundation for world-leading traceability. Electronic IDs will contain medical information and track animal movement across the country. The Service will enhance animal health and welfare and food safety.

The number of new tractors registered in the UK during 2018 was 12,100. The figure is slightly up on 2017 and the highest number for four years. Growth is primarily at the top end of the power range with the average power of tractors continuing to increase each year.

A House of Lords committee has expressed concern over the regulation of the chemical industry post-Brexit saying that Defra needs to do more. The sector which has a turnover of £32bn currently operates under an EU agency and is crucial for agriculture and other industries.

UK sugar production is expected to reach 1.15m tonnes, slightly ahead of forecast. This is less than the record 1.37m tonnes achieved last year, yields have been lower, but the sugar content is higher.

FarmWeb News – 10/01/2019

The HSE has reminded farmers that a new series of inspections will begin soon. The safety record in farming remains poor with 33 fatalities in 2017/8. The inspections will include specific attention to the risks associated with machinery, livestock, falls from height and children.

The Agriculture and Horticulture Development Board is launching a new series of “Country Focus Reports” to highlight opportunities for exports. Initial reports are on the key markets, USA, China and Japan with the latter announcing a lifting of the ban on beef and sheep meat imports from the UK. The Japanese market is forecast to be worth over £25m annually to UK beef producers.

The Defra Secretary, Michael Gove again insisted that animal welfare and production standards would be defended post-Brexit, at a recent farming conference. However, despite pressure from farming leaders he has declined to include written safeguards in the Agriculture Bill currently going through Parliament.

British milk production rose by 8m litres to 1,040m litres, in December, the highest figure for 20 years and ahead of expectations. Production levels are expected to fall back in coming months due to a 1.6% reduction in the milking herd, rising feed costs and downward pressure on prices.

Defra has announced a ban on the outdoor use of metaldehyde from Spring 2020, to protect water courses and wildlife. The chemical is the most commonly used slug control product for oilseed rape, cereals and potatoes. Despite the ban in the UK, it remains licensed for use in other EU and non-EU countries. Other, more expensive options are available, but growers complain this will put them at a commercial disadvantage.

Various sectors have raised concerns over the proposed £30,000 minimum salary requirement for skilled migrant workers seeking five-year visas. Abattoirs are particularly vulnerable with an average of 75% foreign workers most of whom are skilled but do not reach the proposed minimum wage. Efforts to attract British staff, over the years, have failed.

Defra is to hold a consultation on changes to agricultural tenancy legislation following consideration of the likely impact of Brexit by a cross industry group. Changes to the 1986 and 1995 Acts governing tenancies are recommended together with a reform of taxation and other measures.

FarmWeb News 18/12/2013

The campaign by the farming community to ban sky lanterns has been strengthened by a large fire in Gloucester. Over 50 caravans were destroyed in the blaze believed to have been caused by sky lanterns, dozens of which were released from a clubhouse on the site.

The pilot badger cull in Gloucestershire removed 40% of the estimated population. The scheme, originally planned to last six weeks, was extended by a further eight weeks and the target reduced from 70% to 58%. A report on the culls will be published next year. The NFU (E&W) has confirmed its support for future culls in areas of high TB incidence. Stricter rules on cattle movement and testing have been announced and some MPs have called for a Parliamentary debate before more culls are initiated.

DEFRA plans to force farmers to replace ageing slurry stores have been shelved. The plans related to all stores built before 1991 and would have affected 20% of existing stores. Instead, there will be a programme of individual surveys and assessments.

The CLA is calling for a change in legislation to make it easier for footpaths, across farms, to be diverted. The current process is protracted and costly. A dairy farmer recently lost a ten-year battle to divert a path away from his busy and dangerous stockyard despite support from his local authority and ramblers.

A total of £1.48bn was paid out to over 95,000 English farmers on the first day of the Single Payment window, earlier this month. This is the best ever performance of the Rural Payments Agency and comes after many years of criticism of their poor administration procedures.

Tesco has announced the introduction of two-year supply contracts direct with beef producers. Initially, the contracts will be with 100 English and Welsh farmers and are designed to rebuild confidence in the red meat trade after the horsemeat scandal.

Exports of British meat and animal products, to countries outside the EU, continue to increase with the announcement of a £45m per year deal to export pig semen to China, the world’s largest pig producer. Chinese farmers are keen to improve bloodlines with high quality British stock. The deal follows the recent £100m three-year agreement to export beef and lamb to Russia.

The Welsh Government has announced the introduction of electronic tagging for sheep as from January 2015, the same time as the English scheme takes effect. The Welsh system will follow that which has been in place in Scotland for some time.

FarmWeb News – 25/11/2013

The good autumn planting conditions are predicted to lead to a more normal crop mix for the 2014 harvest. The area of wheat is forecast to rise by 22%, winter barley by 55% and oilseed rape by 3% with corresponding falls in spring plantings. The increased wheat plantings should see the UK return to the export market.

After a four year slump in sales, the organic sector in the UK is again producing positive results. Sales have been rising through 2013 with September showing a 2% increase on last year.

The Government has confirmed its intention to repeat the badger culls in 2014. Answering criticism from the Opposition the Government cited the success of similar culls in Ireland, Australia and New Zealand in controlling and eradicating TB. The NFU (E&W) has called for changes in the way culls are organised in the light of experience gained from the two trials.

Farming unions and the CLA have united in a call for DEFRA to suspend the proposal to allocate 15% of CAP funds to wider rural development projects (modulation) from 2015. The 15% is the maximum allowable under CAP rules and critics argue it should start at 9% and be phased in. At this stage, it looks unlikely that any other EU state will allocate the maximum.

The National Sheep Association has criticised the decision to ban visual ear tags, in England, from 2015 in favour of electronic ones. All lambs under 12 months old will need electronic tags even if they are going straight from their farm of birth to slaughter. The change is estimated to cost English farmers £1.8m. Electronic tagging is already in force in Scotland but Wales has yet to decide how to move forward.

Tenant farmers of the National Trust have accused the organisation of increasing rents to unsustainable levels. The TFA has reported a large increase in complaints from tenants.

The Scottish Government has announced the team of experts that will assist it in its review of tenanted holdings. The review will look at the future policy and legislation needed to secure a thriving tenanted sector. The move has been welcomed by tenant farmers.

Despite the continuing decline in dairy farmer numbers, milk production in October reached a ten-year high of 1.09bn litres, an increase of 10% on 2012. Much of the increase is down to better quality forage following improved weather conditions.

FarmWeb News 08/11/2013

A farming charity has said that the poor weather in 2012 and early 2013 has led to a significant increase in farm debt and calls to its helpline. With incomes being badly hit, many farmers extended their credit limits with banks and suppliers and are struggling to pay the debts off.

A report by the Food Standards Agency shows that British abattoirs have breached the BSE rules on a number of occasions. The main breaches relate to the failure to remove or properly handle the banned “specified risk material” which consists of the brain, spinal cord and other organs that may harbour BSE.

The NFU (E&W) has called for landowners and tenants to curb rent increases. It says that rents have been spiralling upwards in the last few years to the point where it is becoming difficult for tenants to cover their costs and get access to additional land.

The price of milk, paid to producers, rose to almost 33p/litre in September, a record high. The price represents a rise of 19% on 2012 and reflects the current buoyant market.

In the year to the end of August 2013, UK sheepmeat exports rose by 15% to 65,500 tonnes, half of which went to France and 10% to China. Exports to China have trebled in the last twelve months.

The pilot badger cull in Somerset has ended with an estimated 65% of badgers having been culled, against a target of 70%. The cull in Gloucestershire has been extended until 18^th December in an effort to meet the target. DEFRA has indicated that the culls will be repeated next year with more areas added. National Trust members have voted not to ban badger culling on Trust farms. The Trust has said its own badger TB vaccination trial may be too difficult and costly to administer on a wide scale.

A survey from DEFRA shows that farm incomes, in England, fell across most sectors in the last twelve months due to poor weather, rising input costs and a 12% fall in the single payment following a strengthening of sterling against the euro. Livestock and dairy were the worst affected with falls of around 40%. Cereals fell 25% and general arable by 9%.

Consultation is underway on how the CAP reforms will be implemented in England. Proposals include 15% of funds being allocated to rural development and the subsidy payments to farmers on the uplands and moors being raised significantly. Funds totalling €27.6bn will be paid to the UK in the period 2014-2020. Scotland’s call for a rise in its 16% share has been rejected.

FarmWeb News – 22/10/2013

DEFRA has announced a fund to help farmers set up small anaerobic digestion (AD) plants on their farms. The money is available in two phases, firstly to fund a business case on the suitability of the scheme and secondly up to £400,000 to cover 50% of the cost of the plant.  Research is going on into converting the methane produced by AD into bio fuel for farm machinery.

Grain prices are currently firm on the strength of buoyant EU exports and the prospects of poorer crops from Russia and the Ukraine where bad weather has adversely affected plantings. The UK wheat harvest was 9% down on last year at 12m tonnes but quality was much improved.  Barley production rose 29% to 7m tonnes.

The pilot badger culls in Somerset and Gloucestershire removed an estimated 60% and 30% of the badger populations respectively. Both have applied for extensions of the six week operations to enable then to try to reach the 70% target.

Changes to the water abstraction licensing system are likely next year after a forthcoming consultation.  The system has hardly changed since the 1960s and needs updating. Direct agricultural use only accounts for 2% of water abstracted.

Savills, the land agents, forecast that agricultural land will rise in value by 40% over the next five years. The rise will be driven by a shortage of land for sale, strong demand from investors, a beneficial tax regime and expansion of existing businesses.  Values have risen 8.5% to the end of the third quarter this year.

A restructuring of the pig processing industry in Scotland has led to a 12% fall in pig numbers there. In contrast, pig numbers have risen by 11% in England, to 4m, after many years of decline.

The single farm payment rate could fall by less than the predicted 4% this year because of EU budget restrictions. However, a favourable sterling/euro exchange rate, set on 30^th September, more than compensates and means the cut could be absorbed and UK farmers may not feel it. The EU needs to sign off the final figure by mid-November if payments are to start on the 1^st December opening date.

A significant increase in the demand for wool has pushed sales volumes up six-fold and prices by 34% to 154p/kg. Sheep losses, due to the bad weather, led to a 10% drop in UK supplies this year.

FarmWeb News 07/10/2013

In sharp contrast to last year, the planting of winter oilseed rape and cereals is moving ahead at a considerable pace. Farmers are confident that their planned acreages will be achieved this year.

Farm leaders have welcomed the Scrap Metal Dealers Act 2013 which came into force on 1^st October. Dealers need to be licensed by the local authority and to verify the name and address of the seller at point of sale.

Milk producers are currently receiving much better prices than last year with Tesco paying almost 34p/litre from November. Dairy Crest says that milk prices have increased 15% over twelve months and they are investing £45m to increase the production of milk powder following strong demand from China.

Police are concerned over a huge fertiliser theft from a farm in Lincolnshire. Sixty-two 1 tonne bags of ammonium nitrate were taken. The material can be used as a basis for explosives.

TB affected almost 5,000 new cattle herds in 2012, with a slight reduction in England but rises in both Scotland and Wales. The disease was also found in sheep, pigs, deer and domestic pets. Scientists are working on a project that would enable TB resistance to be bred into cattle within the next two years.

Following the abolition, in England, of the Agricultural Wages Board on 1^st October, the NFU (E&W) is to offer advice to members and the Unite union is to advise its farm worker members. The situation in Wales is still under consideration whilst Scotland and Northern Ireland have retained their boards.

The final issues in the new CAP deal, outstanding since June, have now been agreed and will form part of the package to be implemented in 2014. Large payments, over €150,000, will be reduced and up to 15% of CAP support can be moved into rural development projects. DEFRA is likely to opt for the full 15%, in England, against opposition from the NFU (E&W). DEFRA has promised to ensure that subsidies only go to genuine farmers.

After months of negotiations, a price has been agreed between the NFU (E&W) and British Sugar for the 2014 crop. Growers will be paid £31.67/tonne an increase of over 14% on the figure originally offered.

FarmWeb News – 13/09/2013

According to the agricultural experts, ADAS, the recent good weather has led to almost perfect harvest conditions and the best wheat harvest for five years. A Lincolnshire farmer set a new yield record for wheat by achieving 14.31 tonnes per hectare off a 9 hectare plot.

The CLA is reminding members that rights of way should remain open and unobstructed during this busy ploughing and cultivation period. Paths that cross fields can be ploughed but must be restored and those around field edges should remain undisturbed and vegetation cut back.

The Government has announced the cancellation of the Seasonal Agricultural Workers Scheme from the end of 2013. The Scheme allowed a quota of Romanians and Bulgarians to work in the UK for six months and mainly benefited the horticultural industries. Whilst labour restrictions on these two countries are lifted from 2014, horticultural leaders were expecting a replacement scheme and have criticised the Government action.

More protests by milk producers are planned in support of a price increase. Their aim is 35p/litre, many are paid 31p but prices can be as low as 28p, below the cost of production. Milk production, in August, was the highest for five years but dairy farmer numbers in England and Wales fell further to 10,495 in September.

A major hatchery has been fined £20,000 for polluting a watercourse. The pollution was caused by contaminated water being discharged from a lagoon and by detergents from vehicle washing. The wet weather in 2012 is being blamed for an increase of 38% in serious pollution incidents on dairy farms.

DEFRA is to start field trials on a cattle vaccine against TB in 2014. It will also trial an associated test that will seek to differentiate between cattle that have been vaccinated and those that actually have the disease, an essential requirement if the vaccine is to be licensed. Early reports suggest the current pilot badger cull is falling well short on numbers.

Tenant farmers’ leaders have expressed a view that the increase in land values should not be reflected in the traditional round of autumn rent reviews. They have however, expressed concern of an indirect impact with existing owners bidding optimistically high rents to expand their businesses.