THE LATEST data on farm incomes, updated by Defra last week, shows overall farm incomes fell for the third consecutive year in 2015/16.
The strengthening pound (ahead of the Brexit vote) and falling prices compounded losses for some sectors.
However, within this there were some success stories. The figures – which give figures for the year to March 2016 – show that while cereal production, horticulture and general cropping performed better than expected, all other farm types performed poorly. Incomes from general cropping rose by over 20% on the year, to £62,900 and horticulture incomes rose by 11% to £35,100; cereal growers fared worse, with incomes falling to £35,600 (though this figure was better than expected).
All livestock sectors fared worse than expected, but pig producers took the biggest hit, with incomes more than halved, down to £22,000 due to increased input costs and oversupply. Dairy incomes were almost halved, too, down to £42,300, though some costs were also reduced, including purchased feed and forage.
Commenting on the figures, NFU President Meurig Raymond said they highlight the importance of the NFU’s lobbying ambitions in light of the Brexit vote.
The union president said: “The NFU is continuing to work with government to ensure they provide the right support for our members – from pushing for burdensome regulation to be removed that remains a major block to growing competitiveness for most farm businesses and policy decisions based on sound science.”
Discussing the prospects for environmental regulation post-Brexit at a meeting of the House of Lords’ Environment Sub-Committee on Friday (Oct 28), witnesses from conservation organisations noted that the UK Government’s own research aimed at identifying ‘red-tape’ (useless and constraining regulations) or ‘gold-plated’ regulation that went above the EU’s minimum standards had been hard pressed to identify any whatsoever. Lords who served on these red tape committees when the Coalition government came to power agreed with the witnesses and admitted that they had difficulty finding any such legislation.
Both groups’ observations rather invite the comment, ‘Well they would say that, wouldn’t they?’ and, in the case of conservation groups such as the RSPB and National Trust ignores their efforts to derail (successfully) those EU regulations which they felt were not in their own interests.
Nevertheless, on Friday, Mr Raymond continued: “These latest farm business income figures underline the need to ensure that British agriculture is dealt with fairly when Government starts its negotiations for a post-Brexit Britain. The most immediate issues confronting the farming sector are trade and access to labour – these must be at the heart of any discussions for the country’s future farm policy so that our industry is able to achieve its true potential.”
Commenting on some of the Union’s work to improve conditions for farmers in their supply chain, Mr Raymond added: “In recent weeks, we have focused on urging dairy processors to be open and honest in a bid to build better, fairer supply chain relationships and to ensure contracts that are fit for purpose. We regularly meet with retailers with recent successes on those signing our Fruit and Veg Pledge that will provide security for suppliers, fair terms and price certainty. We meet with banking leaders to ask for their continued support for the industry in these challenging times.”
Farming faces zero carbon challenge
AN AMBITIOUS new target to reduce greenhouse gas emissions to zero by 2050 will lead to significant changes in farming practices over the coming decades, according to a leading agri-environment specialist.
Professor Iain Donnison, Head of the Institute of Biological, Environmental & Rural Sciences (IBERS) at Aberystwyth University, was responding to the publication of ‘Net Zero: The UK’s contribution to stopping global warming’ published by the UK Government Committee on Climate Change.
Professor Donnison is an expert on agriculture and land use, which feature in the report in terms of targets for one-fifth of agricultural land to be used for forestry, bioenergy crops and peatland restoration.
According to Professor Donnison, such a reduction is very ambitious but achievable in Wales and the wider UK. “Land use can positively contribute towards achieving the net zero targets, but there are challenges in relation to emissions from agriculture especially associated with red meat and dairy,” said Professor Donnison.
“In IBERS we are already working on how to make livestock agriculture less carbon intensive and developing new diversification options for the farming of carbon. For example, net zero targets could provide significant diversification opportunities for both farmers and industries that make use of biomass and wood for the production of energy, materials including in construction and for wider environmental benefits.”
Professor Donnison added: “The report gives a clear message regarding the importance of the task and the role that the UK can play to compensate for past emissions and to help play a leadership role in creating a greener future.
“The report says it seeks to be based on current technologies that can be deployed and achievable targets. One-fifth of agricultural land is a very ambitious target but I believe that through the approaches proposed it is achievable (e.g. for bioenergy crops it fits in with published targets for the UK). This is based on the knowledge and technologies we have now regarding how to do this, and because right now in the UK we are developing a new agricultural policy that looks beyond the common agriculture policy (CAP). For example, the 25-year Environment plan published by Defra envisages payment for public goods which could provide a policy mechanism to help ensure that the appropriate approaches are implemented in the appropriate places.
“The scale of the change, however, should not be underestimated, although agriculture is a sector that has previously successfully responded to challenges such as for increased food production. The additional challenge will be to ensure that we deliver all the benefits we wish to see from land: food, carbon and greenhouse gas (GHG) management and wider environmental benefits, whilst managing the challenge of the impacts of climate change.
“The link is made between healthy diets with less red meat consumption and future reductions in greenhouse gas emissions from agriculture. This reflects that agriculture will likely go through significant change over the coming decades as a result of changes in consumer diets.
“Net Zero targets, however, could provide significant diversification opportunities for both farmers and industries that make use of biomass and wood for the production of energy, materials including in construction and for wider environmental benefits.”
HSE fees up 20%
A FEE imposed on farm businesses found to be in breach of health and safety legislation has gone up nearly 20% to £154/hr.
Since October 2012 the Health and Safety Executive has operated a cost recovery regime, which means that businesses are charged for the costs of an investigation from the point a material breach has been identified through to the point when a decision is made on enforcement action.
If you are found to be in material breach of health and safety law, you will have to pay for the time it takes the HSE to identify the breach and help you put things right. This includes investigating and taking enforcement action. This charging scheme is known as a Fee for Intervention (FFI).
Robert Gazely, farm consultant and health and safety specialist for Strutt & Parker said: “A material breach is something which an inspector considers serious enough that they need to formally write to the business requiring action to be taken. Once an inspector gives a farmer this written notification of contravention (NoC), the farmer will be expected to pay a fee.
“From 6 April 2019, the hourly charge has been increased from £129 to £154. The final bill will be based on the total amount of time it takes the HSE inspector to identify the breach and their work to help put things right.
“Of course, the primary reason for farms to be proactive in their approach to health and safety should be to protect themselves, their families and any employees.
“The number of people who are killed and injured each year on farms remains stubbornly high and the human cost of these incidents can be incalculable to those affected.
“But taking a safety-first approach should also help farm businesses to avoid a financial hit, as the HSE fees can mount up in the event of an investigation.”
Red meat gives ‘Taste of Wales’
WELSH Lamb and Welsh Beef were among the finest of Welsh foods at Wales’ largest and most prestigious food and drink trade event, Taste Wales last month.
The remarkable display of products, all under one roof, brought together a large contingent of UK and overseas buyers, including importers with a specific interest in Welsh red meat. These included a major foodservice and retail importer and distributor from Scandinavia that imports 6,000 million tonnes of meat annually from all over the world. The company is recognised for bringing tasty food experiences to Nordic dining tables.
They were invited to the event by Hybu Cig Cymru – Meat Promotion Wales (HCC) who also arranged site visits to some of Wales’ major red meat processing plants. The main aim was to impress the importers with the industry’s high ethical and environmental standards.
The visit, led by HCC’s market representatives in Scandinavia, was a platform for many productive and promising discussions.
One representative, Anette Stenebrandt said at Taste Wales: “We have a company from Sweden and Finland with us, trying to do some new business in the Nordic-speaking countries. This is really a fantastic fair and we have enjoyed it a lot.”
Her colleague Jakob True added: “This is our first time here at this amazing event, it’s a great opportunity to meet a lot of Welsh producers, particularly Welsh Lamb which is world-class, we know. We’ll go back to Scandinavia with a lot of good new leads and hopefully bring a lot of business to Wales.”
HCC’s Market Development Manager, Rhys Llywelyn said: “Many of the buyers we met at Taste Wales, including the Scandinavians, showed a significant interest in Welsh Lamb and were impressed by the whole package – from the story of producing Welsh Lamb to the processing techniques, the taste and texture.
“Others also expressed a keen interest in forging deals with the industry, including a Japanese department store, a major buyer from Hong Kong and a representative from Qatar. This bodes well for the future, especially as Brexit uncertainty is set to continue in light of the extension on Article 50.”
In recent months, HCC has undertaken a strategic GB marketing drive to encourage growth and recognition of our quality produce on British soil.
HCC’s UK Market Development Executive, Emily Davies said: “Our presence at Taste Wales also included concentrating our efforts on promoting Welsh Lamb in the domestic market. We met a number of foodservice companies, retailers and executive chefs and discussed Welsh red meat opportunities with meal-kit companies and online retailers. We also launched a new tool-kit for retailers which highlights the ways in which we can work with them to promote Welsh Lamb and Beef.”
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