FarmWeb News 02/09/2013

FarmWeb News 02/09/2013

The rising price of UK farmland continues to make the headlines. Latest figures show the average price rose to £7,440 per acre in the first six months of this year. A 13 acre block, in Cheshire, went for over £12,000 an acre pushing the average for that area to £8,800/acre. Tenants have expressed concerns that this will lead to rent increases.

The long delayed pilot badger culls have started in Somerset and Gloucestershire drawing protest from some wildlife groups. The NFU (E & W) President has written to all members explaining the rationale behind the culls and confirming that operational details will not be made public. The NFU obtained an injunction to protect farmers in the pilot cull areas from unlawful action by animal rights activists.

The Solar Power Trade Association has produced new guidelines to minimise criticism that solar arrays on farmland are displacing crops. The guidelines state that the arrays should be restricted to non-agricultural and lower quality land and combined with grazing and bio-diversity projects where possible.

British farm machinery manufacturers exported £903m of equipment in the first six months of this year, a rise of 9%.  Imports fell by 14% to £940m in the same period. The USA, France and Germany were the largest customers.

DEFRA is sending a food trade mission to the World Food Exhibition, in Moscow, in September. The mission will promote UK food and drink exports to Russia which have increased over the last ten years to £121m with further significant potential.

The Scottish Tenant Farmers Association is putting forward proposals on rent reviews, tenants’ improvements and security of succession in talks with the Scottish Government. The talks are ahead of the review of the Agricultural Holdings legislation, next year.

The Control of Vibrations at Work Regulations 2005, are due to come into effect for agriculture in July 2014. The regulations will relate to farm machinery built before 2007 and may restrict the time farmers can spend in their tractors to limit possible adverse health effects.

Negotiations between the NFU (E&W) and British Sugar continue over the price for next year’s crop. The two parties have been at loggerheads for some weeks but the NFU feels progress is now being made.

FarmWeb News 23/07/2013

Following investment in automotive and other key industries, the government has announced the £160m Agricultural Technologies Strategy.  The aim of the Strategy is to ensure that agricultural research and science remain world leading.

The Ensus bioethanol plant on Teesside opened in 2010 and has been plagued by technical and marketing problems since. It has now been bought by Crop Energies of Germany with a plan to invest £50m in improvements and move production up to economic levels. The plant is one of the largest in Europe. Meanwhile, MEPs are proposing a cap on the production of biofuels from sugar, cereals and oilseeds that would threaten producers across Europe.

A Welsh Government enquiry into the livestock losses caused by the severe winter weather has found that contingency plans did not exist for dealing with them. The enquiry is likely to recommend that insurance schemes be set up to cover future losses rather than the cost falling on the taxpayer.

Twenty years ago the EU was spending over €10bn per year supporting exports of agricultural products into the world market. This has gradually been reduced over the years and the last remaining support, for poultrymeat, has now been removed.

The BBC has announced a new series of three programmes covering the science and techniques behind the growing of the main crops. The series, called “Harvest” is scheduled for screening in September.

Milk producer numbers, in Great Britain, fell by 1.65% during 2012 but have already fallen by 1.2%, so far, this year. There are now 11,542 producers, down from almost 23,000 ten years ago.

The seed company, Monsanto, has said it will no longer seek to develop any GM crops in Europe because of the EU negative attitude to the science. It has warned that GM continues to expand globally. Monsanto will concentrate on its substantial conventional seed business in Europe.

The latest TB figures from DEFRA show that 12,006 cattle were slaughtered in the first four months of this year, a 2% reduction on the same period in 2012.

Farmers along the proposed route of HS2 can now make claims for compensation following the official “safeguarding” of the route. Compulsory purchase of the land needed for the line is likely to happen in 2016 if the project goes ahead.

FarmWeb News 08/07/2013

Birds Eye has promised to use only British and Irish beef in its burgers from the end of June 2013 and to extend this policy to all other red meat products and ready-meals by the end of this year.

Industry commentators are predicting a late harvest this year with many crops, particularly oilseed rape, producing low yields. World cereal prices have fallen recently, but the price of straw remains high and its availability after harvest, for bedding, is concerning livestock farmers.

DEFRA has announced a proposed new plan aimed at eradicating TB from the UK over the next 25 years. The country will be divided into high risk, low risk and edge areas each with its own appropriate TB control measures. One feature is a reduction in compensation for any farmer whose poor bio-security contributes to an outbreak.

The broad outline of the future CAP has been agreed but much detail is still to be added. In 2015 a new Basic Payment Scheme (BPS) will be introduced  which is likely to lead to differing regimes in England, Wales and Scotland. Also, farmers have been advised to budget for a 5% reduction in support in each of 2013 and 2014. Milk quotas will end in March 2015 and sugar quotas in September 2017.

Provisional figures from the HSE show that 29 workers lost their lives in work related accidents in the year to March 2013 compared to 35 in the previous year. However, agriculture still remains the most dangerous industry in the UK recording almost 20% of deaths. NFU Mutual has launched its latest safety campaign, Farm Safety First.

Despite a call from DEFRA for more GM research in Great Britain,  the extent of resistance to it was disclosed by a recent survey with only 61% of farmers and 21% of consumers in favour.

In the latest round of Government spending cuts the DEFRA budget has been reduced by almost 10% to around £1.9bn.

Plans to merge Natural England and the Environment Agency have been shelved after a review of their individual activities. Each will retain its current statutory responsibilities.

The project for rolling out high-speed broadband to rural areas is now almost 2 years behind target. The government made £530m available to county councils in 2011 to move the project on, subject to the councils matching any funds applied for. Only 9 of the 44 councils are likely to meet the 2015 target. BT is now the only contractor working on the project, others having dropped out.

FarmWeb News – 25/06/2013

The HSE has announced a number of Safety & Health Awareness Days for this year, as part of its ongoing programme. The days give free advice to farmers on how to avoid the common causes of accidents and ill health on farms. In the latest court case, a farmer was fined £120,000 following the death of a worker in a tractor with no cab or roll bar.

Farm borrowing rose by 10.5% to £13.7bn in the twelve months to March 2013. Poor weather conditions in the last two years have put severe pressure on the cash flows of many arable farms. Over the last five years farm borrowing has risen by 36%, in contrast to the wider commercial sector which shows a 21% reduction. The lending confirms the positive long term view of agriculture taken by the banks.

The DEFRA Secretary has called for the UK to embrace GM research pointing out that GM crops are widespread outside of the EU. Almost 85% of livestock and poultry feed in the EU contains GM product from imported ingredients. Industry leaders have backed his call.

A report from the Scottish Government shows that the total income from farming in 2012 fell by 15% to £635m. Scotland has 18% of UK cattle and 21% of sheep.

Farmers are in dispute with British Sugar over the contract price for the 2014 crop. Two difficult growing seasons have led to them rejecting the offered £30.67/tonne.

The Government has indicated that it will consider evidence to support lifting the ban on stubble burning. Farmers are complaining of herbicide resistant weeds being increasingly difficult to control. Stubble burning was banned in 1993.

The demise of the East of England Show is the latest evidence of falling attendances and rising costs.  Many shows have suffered financial losses in the last two years and it is inevitable that others will cease. Agricultural shows attract around 6m visitors each year.

A survey of rent reviews in 2012 shows rises of 23% – 44% across England & Wales and 18% average in Scotland.  The rises are higher than anticipated by most commentators and are down to both competition between farmers and some rents being long overdue for a review.

The Open Farm Sunday event, on 9^th June, attracted over 200,000 visitors to the 365 host farms, a significant increase on last year. The event has now attracted over 1 million visitors since it started in 2005.

FarmWeb News 31/05/2013

The HSE has warned farmers about the dangers of slurry storage as farms get bigger and the need for more storage rises.  Whilst most deaths and injuries have been caused by falling into the slurry store, there are great dangers in the lethal gases given off when the slurry is disturbed.

A full review of farm tenancy legislation, in Scotland, is to go ahead next year. The number of tenancies has fallen in recent years because of concern that tenants may establish a right to buy.  Many doubt if policies acceptable to both sides will be agreed.

The increasing sophistication of tractors is making them more attractive to thieves with a rising number of incidents of the theft of satellite receivers and display screens.

Rural property continued to be a good investment through 2012 generating a return of 9.9%, mainly via capital appreciation of 8.2%. Over five years, rural property investments have returned 8.9% p.a. compared with 0.7% from commercial, 4.6% from residential and 2.1% from equities.

The poor potato harvest continues to affect supplies and has forced prices up by 100% to over £300/tonne with much higher levels of imports.

The UK isunder increasing pressure from the EU to control TB in cattle.  The UK has the worst record in the EU and the disease remains out of control in South West England and South Wales.  The first trial badger cull is due to start in June with a recent survey showing that the cull was not a big issue for most people.

A Government report shows that greenhouse gas emissions from UK agriculture have fallen by 20% in the last 20 years through efficiency measures.  Agriculture accounts for 9% of total UK emissions.

The Veterinary Medicines Directorate has authorised the use of a new vaccine to counter the Schmallenberg virus in cattle and sheep. The vaccine will be available in the next few weeks.

Under new planning rules introduced on 30^th May 2013, agricultural buildings up to 500 sq m can be converted to alternative uses, excluding residential, without the need for planning consent for the change.  This exemption does not apply to listed buildings or those that require structural changes.

FarmWeb News 09/05/2013

The poor quality of UK wheat, currently on the market, has forced Weetabix to cut production of some of its cereal ranges.  The company is committed to sourcing UK wheat but the quality and quantity was adversely affected by growing conditions last year.  UK wheat imports generally, are likely to have doubled to over 2m tonnes by the end of June 2013.

The latest figures from DEFRA show a 14% fall in the total income from UK farming to £4.7bn in 2012.  The figure reflects a rise in costs, a fall in output and changes in direct subsidies.  The fall is being blamed on the poor weather with little improvement being forecast for 2013.

The Great Yorkshire Show is spending more than £3m on improving the roads, drainage and car parking following the curtailment of the 2012 show after the first day, resulting in an estimated loss of £2m.

Farmers have called for more education and action to reduce the incidence of sheep worrying which costs the industry £1m each year.  The number of reported attacks rose to 739 last year with Cumbria being the worst affected.

The EU has pushed through a ban on three neonicotinoids despite opposition from several member states including the UK.  The chemicals are cited as one of the reasons for a decline in bee numbers, but scientific opinion is divided and some bee farmers doubt the move is the answer.  The ban takes effect on 1^st December 2013.

The full extent of the loss of farm animals due to the freezing weather is emerging with the figure reaching 100,000. This figure will rise again as more data is collected.

Both Dairy Crest and the Co-op have increased the price they pay producers for milk to over 31p/litre. Processors are vying to attract producers with better prices and volume incentives.

The EU has fined the UK €10.3m for non-compliance with the rules on animal identification and monitoring.  The UK fine is part of total penalties of €230m applied across the whole EU for various rule breaches.

Both beef and lamb prices have risen over the past two weeks against the usual seasonal trend. Supplies remain tight with a shortage of quality animals at market. The top price at Carlisle mart for a pedigree Limousin bull reached 40,000 guineas last week.

FarmWeb News 22/04/2013

Livestock farmers are complaining that the late spring has added to their production costs. Grass pasture is up to six weeks behind and most have to buy in extra forage to tide them over. For dairy farmers, this is adding 3-4p/litre to their costs.

The Scottish Government has allocated £22m to support cattle farming in the country. The Scottish Beef Scheme will aid 7,400 producers and is aimed to encourage the retention of livestock on the more difficult farming land by making direct payments to them based on the number of calves meeting Scheme rules. Payment rates are weighted towards the smaller producers.

The estimate of sheep, lambs and cattle that have perished in the snow storms has been doubled to 50,000. Scotland, Northern Ireland and the Isle of Man were particularly badly hit. DEFRA has now joined the devolved governments of Scotland, Wales and Northern Ireland in announcing financial help for the farmers affected as the cost of removal of animal carcasses is having a severe impact.

UK milk production, in the year ended March 2013, showed a fall of 3.6% on the previous year at 12.97bn litres. This is 2bn litres below quota and continues the trend of recent years. However, producers have again been warned that the abolition of quotas in 2015 is likely to lead to a rise in production and more volatile prices.   

The latest English farmland index shows a rise in value of 1.5% in the first quarter 2013, giving an annual rise of 4% and a ten year rise of 207%. Leading land agents predict the low sales volumes seen in 2012  will continue into 2013 because of strong commodity prices and a positive outlook for farming.

The UK pig herd has fallen to its lowest level since 1952. The herd declined by 2.4% last year to 4.2m. High feed prices and strong competition from Europe have forced UK producers out of business. Farmers who are part of a retailer led production chain have fared best.

Dairy farmers are now able to set up producer organisations (POs), under new EU rules, to market their milk more effectively. POs differ from existing co-ops in a number of ways including, they are more formal, regulated by the RPA and can apply for EU funding to set up.

MPs have finally voted to abolish the Agricultural Wages Board in England after several delays. The board will disappear on 1^st October 2013. The move is criticised by unions but welcomed by employers.

DEFRA figures show that 3,215 cattle were slaughtered across the UK in January as a result of TB infection, a 24% rise on January 2012.

FarmWeb News 08/04/2013

The debate on neonicotinoid pesticides continues with the EU decision to defer the ban on their use for two years.  The pesticides are claimed to harm bees but conflicting evidence has been put forward for and against their use.  They account for 24% of the pesticide market so form an important means of controlling pests.

The NFU (E&W) has predicted that the UK will become a net importer of wheat for the first time in a decade.  Poor weather conditions led to a 14% fall in yields last year and a 25% fall in the area planted for the current season.

More than 25,000 sheep, lambs and cattle are believed to have perished in the cold March weather.  This has led to financial problems for farmers in the collection and disposal of the carcasses.

Depressed ethanol demand and prices together with a shortage of supplies of UK wheat has forced the Ensus bioethanol plant, on Teesside, to suspend production for the third time since it opened in 2010.  The plant is the largest in Europe, consuming 1.2m tonnes of wheat per year.

More than 900 hill farmers, in England, have shared £2m in subsidy under the Uplands Transitional Payment scheme.  The scheme replaces the Hill Farm Allowance for those farmers unable to benefit from the Uplands Stewardship Scheme.

Researchers are making good progress in the production of a new synthetic vaccine against foot-and-mouth disease.  The vaccine, a major breakthrough, will be much safer than current products and should be available in two years.

A campaign by the National Pig Association (NPA) has led to Britain’s leading food firms signing up to a pledge of total traceability on pig meat products.  The NPA remains concerned that many producers on the Continent are not adhering to the ban on sow stalls resulting in lower cost, illegal produce entering the UK market.

Cornish Mutual has announced an increase in premium income of 9% to £19.2m for the year ended 30^th September 2012.  Profits, after tax, also increased to almost £2.1m.

FarmWeb News 20/03/2013

As Easter approaches and the number of farm visits rise, farmers are being reminded of their responsibility to visitors and to follow industry guidelines to reduce the risk of infections.  Pregnant women are particularly at risk.

A petting farm, which attracted 2,000 visitors a day and was at the centre of an E-coli outbreak in 2009, has been found wholly liable for damages arising from the incident.  The farm had tried to argue shared liability with the local council and the Health Protection Agency but failed in the High Court.

The EU has announced plans to recover £357m from member states in financial penalties for mishandling CAP funds, over a period of years.  Auditors have found most states have mishandled funding in one or more areas.  The UK is the worst culprit with £88m having to be repaid.  Discussions on the reform of the CAP continue with the aim of having the new package completed by June.

Farmers are reporting that oilseed rape is three to four weeks behind where it should be due to the continuing poor weather.  With winter wheat plantings down by 25%, spring sowing is underway but hampered by the wet conditions and shortage of seed.  In March 2012, drought was the problem.

Whilst ruling that HS2 can go ahead, the High Court has said that compensation proposals were unfair and must be revisited.  The NFU (E&W) welcomes this decision as an opportunity to press for higher compensation for farms affected.

The latest figures from DEFRA show that the number of cattle slaughtered, in Wales, because of TB, rose by 15% to 9,307 in the last twelve months.  Farmers say this is evidence that the purely cattle based measures to control the disease are ineffective.

The inventor, Sir James Dyson has purchased 17,000 acres of farmland in Lincolnshire through his farming company, Beeswax Farming.  The purchase cost £150m and includes much of the Nocton Estate. The Estate was put up for sale when plans to establish the UK’s largest dairy unit were abandoned after objections by the public and the Environment Agency.

In a much improved performance the Rural Payments Agency paid over 98% of SFP claimants, in England, by mid-February.  This is the best performance by the much criticised Agency, exceeding both its own and EU targets.

FarmWeb News 04/03/2013

The demand for quality assured beef and lamb, in the light of the horsemeat scandal, is forecast to remain strong for the next twelve months.  With supplies tight across Europe, prices are set to remain high and exports to rise.

Official forecasts for Welsh farm incomes show they are likely to decline significantly in 2013.  Dairy incomes could be down by 21% and livestock enterprises in the lowlands and Less Favoured Areas by 34% and 60% respectively.

The number of cases of Schmallenberg disease, across Great Britain, rose to 1,531 at the end of February, a 26% rise on January. The disease which mainly affected sheep and cattle, in the past, has now been found in goats and alpacas.  A vaccine has been produced and is awaiting approval and it is hoped that a natural immunity to the disease will be built up over the next couple of years.

Sugar beet growers have been complaining about the price they are paid by British Sugar and also processing delays and problems at the four processing plants.  Major investment plans are in hand for the plants in the run-up to the likely abolition of quotas in 2017.

Tractor thefts, which had continued to fall from a peak in 2010, have risen sharply in the last three months.  Thieves are targeting the more expensive machines a number of which have recently been recovered from Poland.

The latest statistics from DEFRA show that 1.8% of UK arable land is being used to produce various forms of bio-energy.  Production of vehicle fuel consumed 1.3m tonnes of oilseed rape, wheat and sugar beet whilst 200,000 tonnes of straw (2% of production) went to fuel power stations.  The CLA has called for more clarity and support from the Government and power companies on the future of the renewable energy sector.

Despite farm incomes being depressed in 2012, many tenant farmers are facing demands for large increases in their rents.  The tenant farmers’ associations across Great Britain have evidence of increases of up to 50% being demanded.

Sales of ATVs fell by 13% in 2012 whilst the popularity of the UTV version increased. Sales of these “side by side” buggies rose by 18% to account for 43% of the market sector.

FarmWeb News 14/02/2013

The Farming and Wildlife Advisory Group (FWAG) has been resurrected following its fall into administration in 2011.  The Group is working with the Game and Wildlife Conservation Trust and Linking Environment and Farming (LEAF) and aims to expand to cover the whole country in due course.

Over 100,000 machines are now covered by CESAR security following its start in 2009.  More manufacturers are fitting it as standard, including John Deere, Massey Ferguson and JCB.

Most farms in England will see a fall in income for the twelve months ending February 2013, according to DEFRA.  For arable farms the fall will be 11% but for livestock and dairy farmers it could be as much as 52%.  High input costs and the wet weather have been major factors.

The CAP budget is forecast to fall by 10% following an outline agreement on the overall EU budget.  Payments to UK farmers are likely to be directly affected but a payment cap, for larger farmers, will probably not be applied in the UK. The CAP should be finalised in June.

DEFRA is investing £20m in a range of courses covering business, marketing and IT.  The courses are offered through the Rural Development Programme with 70% of the cost being subsidised by DEFRA.

The EU has stated that an effective vaccine against TB is unlikely to be available before 2023.  Vaccination of cattle is currently banned in the EU; there is no test to differentiate between vaccinated animals and those with the disease.  Meanwhile, the cost of the Welsh Government scheme to vaccinate badgers has been disclosed as £662 per badger, so far.

The wet weather continues to affect work on the land with autumn sowings reported to be 20% down on last year.  Land left fallow seems set to rise by one-third as farmers on heavy wet land seriously consider this option.

Barclays Bank is to exit some of its agricultural trading operations as part of the drive to clean up its image.  The Bank, along with other financial institutions has been criticised in the past for speculating in agricultural products leading to price rises.

FarmWeb News 30/01/2013

Farmers with telecommunication masts on their property are coming under pressure to accept lower rentals on the grounds that the masts may become uneconomic and therefore decommissioned.  The move follows increased consolidation and equipment sharing within the industry.  There are 60,000 installations in the UK and the rental can be worth up to £5,000 or more.

The EU is to amend the regulations relating to organic produce later this year.  Ahead of this, it is consulting with all stakeholders over the legal framework, GM, control and labelling.  Although organic production is declining in the UK, it is increasing in the rest of the world and accounts for 5% of cultivated land in the EU.

Latest figures show that only 10 of the 27 EU states are fully compliant with the new rules on pig stalls that came into force on the 1^st  January 2013.  Of the large producers, Germany (73% compliant), France (72%) and Ireland (82%) are the main offenders. The UK is 100% compliant and has called for action against non-compliant countries.

The NFU (E&W) has expressed confidence that the two trial badger culls will take place this summer.  Other areas have been mapped and it is forecast that the cull will be extended into these during 2014.

The supermarket ombudsman has been named, Christin Tacon, who has eleven years experience as the MD of Co-operative Farms. She will enforce the new code which applies to retailers with a UK turnover, in groceries, of more than £1bn.

The number of young people studying agriculture at post graduate level has shown a healthy 10% rise over the last year.  Dynamic changes within the industry are generating greater interest in the sector as a career opportunity.

EU leaders meet again on 7/8^th February to try to finalise the negotiations for the CAP budget for 2014 to 2020.  Cuts of 9% in direct payments and 13% in the rural development budget are proposed.  The UK is seeking greater cuts, whilst France and Ireland oppose them.

McCain Foods has been forced to follow Hovis and drop its “100% British” pledge after the poor potato harvest impacted on supplies. However, Walkers Crisps has confirmed it is able to continue to use only British potatoes.