Tuesday, December 31, 2019

Level funding for farmers

HM Treasury has stated that level funding for farmers in the form of direct payments will be made available in 2020: Support confirmed

Level funding does mean a decline in real terms because of inflation, currently running (CPI) at fractionally over 3 per cent. The basket of goods used by farmers as inputs may differ from the CPI rate and indeed from one farm to another.

The NFU welcomed the statement, but remains concerned about future trade policy and imports: NFU response

Quite what form the new ELMS payments will take remains to be seen. I have heard that at least three versions have been discussed within Defra. The key is to develop a scheme that provides genuine incentives for farmers to engage in environmentally friendly behaviour whilst giving a fair deal for taxpayers.

I am still not convinced that sufficient attention is being paid to climate change, although that was a major deficiency of the CAP where attempts to introduce a climate change pillar were (in my view) defeated by the agri-industry lobby.

Friday, December 20, 2019

Why we need research on vegetables

A celebration of seventy years of crop research at the University of Warwick's Wellesbourne campus: Seventy years

One of the greatest privileges of my academic career was to take part in two projects with scientists at Wellesbourne. I recently completed a book chapter relating to one of them on biopesticides: RELU project

The crops research centre is continuing practical work on biopesticides through the use of levy money: Amber project

As more people become vegetarians or vegans, but, perhaps more importantly, others reduce their meat consumption, the research done at Wellesbourne is more important than ever.

Wednesday, November 6, 2019

High performance will help farms survive Brexit

Strutt and Parker look at the effects of a no deal Brexit on agriculture: No Deal impact

They argue, 'The best insurance for a farm business remains to be as high performing as possible. Top-performing farms (in terms of the ratio of what they produce compared with the inputs needed to produce it) are in a far stronger position to cope with the changes.'

Another paper looks at the effect of changes in the funding of farm support: Funding gap

The paper argues, 'The changes will most affect farms that are highly reliant on Basic Payments - cereals, mixed and lowland livestock farms. Sectors like dairy will be less affected.'

They advise, 'Farm as efficiently as possible; the top 25% businesses are less reliant on direct payments and more resilient to volatility. Farmers should continue to look for ways to improve their farming systems, in terms of outputs and markets for their products, variable and fixed costs.'

Wednesday, October 9, 2019

Post Brexit tariff regime angers farmers

The NFU is annoyed about the removal of tariff safeguards for a number of agricultural sectors in the event of a no deal Brexit: Tariff review

Government policy appears to be driven by a desire to keep food prices low. Minette Batters, NFU president, said that the Government had 'betrayed' the industry.

Monday, September 16, 2019

Dairy sector also faces Brexit challenges

Much of the discussion of the impact of Brexit on agriculture has focused for understandable reasons on the livestock sector, particularly sheep farming. However, the dairy sector also faces challenges.

Rising production and static demand is currently creating an over supply problem in the liquid market. Muller has blamed its recent price cut to farmers on a 37 per cent reduction in the cream price.

Cross-border cream sales have been relieving pressure on the liquid market, but would face a tariff of £972/t in the event of a no deal exit, ruling out export sales.

Kite Consulting, a leading dairy consultancy, are advising farmers to ensure that feed stores are full on October 31st to lock in prices. That should include minerals and fats that come in by EU trades. They should also hold back on investing in new machinery until after Christmas: Kite's advice

Farmers fury over cull cancellation

Farmers are angry about the cancellation of a proposed badger cull in Derbyshire days before it was due to go ahead. The Government has given the green light to culls in 11 other new areas.

A cull has never been cancelled so close to the time it was due to go ahead. The decision was taken by Defra secretary of state Theresa Villiers on the grounds that badgers are being vaccinated against bovine TB in Derbyshire.

However, some see the hand of Boris Johnson's partner, Carrie Symonds, in the decision. Dominic Dyer, the chief executive of the Badger Trust, met her in Downing Street last month. She has helped him carry a banner when out campaigning against the cull. Mr Dyer wrote to Boris Johnson about the cull and three days later it was called off.

Monday, September 9, 2019

Farmers back no deal Brexit

A surprising number of farmers back a no deal Brexit given that many of them would suffer financially as a result. At least that is the case if one believes polls from Farmers Weekly. A health warning is always necessary about these polls as respondents select themselves and the Ns are often small. A poll which purported to show that a majority of farmers backed Brexit in the referendum has nevertheless embedded itself in the public mind.

43 per cent of 'about 300' farmers said they would be happy with a no deal Brexit while 57 per cent said they would not. Concern about leaving without a deal was strongest in Northern Ireland, Scotland and Yorkshire and Humberside. Optimism about farm business prospects is at its lowest level since the survey started a year ago.

A snapshot 24 hour poll found that 53 per cent would choose to leave the EU with no deal if they could vote again. 38 per cent said they would vote remain and just 9 per cent said they would back the withdrawal agreement backed by Theresa May.

It is interesting that the first poll is below a story about the impact of a no deal Brexit on the sheepmeat sector. About one-third of the UK's production of lamb is exported and 95 per cent of this goes to the EU. 40 per cent tariffs and regulatory barriers would almost wipe out exports.

The Government has ruled out culling as a response to such a crisis. It looks as if they favour a combination of a headage payment on breeding ewes and a slaughterhouse premium. The UK breeding flock already reduced by about 30 per cent in the 2017-18 breeding season as farmers responded to an uncertain future.

Mike Gooding, director of Farmers' First, one of Britain's biggest lamb exporters, told Farmers Weekly: 'Essentially, Brexit risks excluding UK produce from the EU market. A no-deal Brexit would result in the same outcome - but with that risk greatly increased.'

He predicted a substantial fall in sheep farming in the UK. 'My own personal view is that there will be far fewer farmers managing what sheep there are in larger flocks - possibly across multiple holdings.'