Author: Caroline Ingamells

Farming Focus – April 2023

The April 2023 edition of Farming Focus reports on Defra’s first estimates of Farm Business Income for 2022/23 and the latest economic forecasts from the OBR.  Do you need help with your BPS application? 2023 is an important year; with the claim period now open contact one of our consultants for advice.  Defra has removed the limit on capital grants; contact one of our consultants if you need advice on making an application.  The Animal Health and Welfare Grants are also now open for applications.  Have a look and see how you can give feedback on Defra’s new Rules for Farmers and Land Managers information page.  The BoE has increased Base Rates again.  We report on the the Windsor Framework and what it means for goods moving from GB to NI.  Finally we take a look at British Sugar’s Early Beet Contract.

The Spotlight article this month looks at an update to The Andersons Centre’s model arable business – Loam Farm.  The budget highlights the volatility within the sector.  After two very good years, including a record high for 2022, the prospects for the current year look concerning.

Click Here to access our April 2023 edition of Farming Focus.

Also, a reminder that if you are an ABP supplier you could potentially avail of a free carbon footprinting assessment for your farm. ABP recently launched its PRISM 2030 Programme which Andersons is involved with. Places are limited, only 350 available. Its’ aim is to help participants to improve their carbon footprint and sustainability across the farm. A grant scheme will be available in the spring for signed up participates. If you supply ABP and would like to find out more information about joining PRISM 2030, please contact Katie Thorley via [email protected] or call 07977 061664.

If you require advice from one of our consultants, do not hesitate to contact them by email or phone.  Their contact details can be obtained by clicking here. Alternatively, your can also contact our office on 01664 503200 or email [email protected]

If you would like more detail on the topics covered above as well as additional articles on UK farm business matters, why not subscribe to our Professional Update bulletin (incorporating Andersons AgriBrief)? Over the course of each month, we give a concise and unbiased commentary on the key issues affecting business performance in the UK agri-food industry, and its implications for farming and food businesses. Please click on the link below for a 90-day free trial:

https://theandersonscentre.co.uk/publications/abc-professional-update/

Farming Focus – March 2023

The March 2023 edition of Farming Focus reports on Defra’s long-term environmental commitments contained in its new Environmental Improvement Plan (EIP).  Defra has released more information on Biodiversity Net Gain (BNG), could this be a new income stream for some land managers?  Read when farm support will change in Scotland as the Scottish Government releases its route-map.  In England, Defra has published key application and claim dates for 2023.  In other news the FiPL scheme in England and the Farming Connect programme in Wales have both been given extensions.  The AHDB has announced it is moving offices to save money and we report on a further increase in base rates as the UK economy just avoids entering a recession.

The Spotlight article this month looks at the Farming Equipment and Technology Fund (FETF) which provides grants for certain items of equipment that have pre-identified by Defra.

Click Here to access our March 2023 edition of Farming Focus.

Also, a reminder that if you are an ABP supplier you could potentially avail of a free carbon footprinting assessment for your farm. ABP recently launched its PRISM 2030 Programme which Andersons is involved with. Places are limited, only 350 available. Its’ aim is to help participants to improve their carbon footprint and sustainability across the farm. A grant scheme will be available in the spring for signed up participates. If you supply ABP and would like to find out more information about joining PRISM 2030, please contact Katie Thorley via [email protected] or call 07977 061664.

If you require advice from one of our consultants, do not hesitate to contact them by email or phone.  Their contact details can be obtained by clicking here. Alternatively, your can also contact our office on 01664 503200 or email [email protected]

If you would like more detail on the topics covered above as well as additional articles on UK farm business matters, why not subscribe to our Professional Update bulletin (incorporating Andersons AgriBrief)? Over the course of each month, we give a concise and unbiased commentary on the key issues affecting business performance in the UK agri-food industry, and its implications for farming and food businesses. Please click on the link below for a 90-day free trial:

https://theandersonscentre.co.uk/publications/abc-professional-update/

Farming Focus – February 2023

The February 2023 edition of Farming Focus reports on the new legally binding environmental targets, it also explains what support farmers will receive towards their energy bills after April 2023.  Contact your consultant if you need help with your BPS application, the window opens in March, the last before delinking, what does this mean?  For farmers in Wales, we report on the Winter Update, see when schemes are open.  Do you supply ABP? If so, you are eligible for its PRISM 2030 Programme, read what this means for you.  Finally we take a look at the latest farm rents data in England.

The Spotlight article this month looks at ELM in more detail including the 6 new SFI Standards which will be available from this summer and changes to Countryside Stewardship.

Click Here to access our February 2023 edition of Farming Focus.

If you require advice from one of our consultants, do not hesitate to contact them by email or phone.  Their contact details can be obtained by clicking here. Alternatively, your can also contact our office on 01664 503200 or email [email protected]

If you would like more detail on the topics covered above as well as additional articles on UK farm business matters, why not subscribe to our Professional Update bulletin (incorporating Andersons AgriBrief)? Over the course of each month, we give a concise and unbiased commentary on the key issues affecting business performance in the UK agri-food industry, and its implications for farming and food businesses. Please click on the link below for a 90-day free trial:

https://theandersonscentre.co.uk/publications/abc-professional-update/

Farming Focus – January 2023

The January 2023 edition of Farming Focus reports on the increased number of workers able to come to the UK under the Seasonal Agricultural Workers Scheme.  Defra is expected to announce details of a further round of Landscape Recovery (LR) shortly, could this be of interest to you?  Already open in England is a pilot to help support new entrants into farming.  We also report on another grant due to open which will fund ‘ambitious solutions’ within agriculture and horticulture.  More details are emerging about the Nutrient Mitigation Scheme – could this be another income stream for you?  Or could changes to planning policy present opportunities for your business?  The Welsh Government has opened a consultation on introducing a licensing scheme to allow higher levels of nitrogen applications and has also confirmed the BPS will remain at current rates for 2023 and 2024.  Finally, we report on another Base Rate rise.

The Spotlight article this month looks at Agflation, examining how input costs continue to increase while output values stall.

Click Here to access our January 2023 edition of Farming Focus.

If you require advice from one of our consultants, do not hesitate to contact them by email or phone.  Their contact details can be obtained by clicking here. Alternatively, your can also contact our office on 01664 503200 or email [email protected]

If you would like more detail on the topics covered above as well as additional articles on UK farm business matters, why not subscribe to our Professional Update bulletin (incorporating Andersons AgriBrief)? Over the course of each month, we give a concise and unbiased commentary on the key issues affecting business performance in the UK agri-food industry, and its implications for farming and food businesses. Please click on the link below for a 90-day free trial:

https://theandersonscentre.co.uk/publications/abc-professional-update/

Farming Focus – December 2022

The December 2022 edition of Farming Focus reports Countryside Stewardship plus will now replace the Local Nature Recovery scheme following the ‘review’ of the Agricultural Transition; have a look at what else this means for ELM.  We take a look at the Trade (Australia and New Zealand) Bill currently going through Westminster and comment on further interest rate rises.  Defra’s latest Farm Business Income (FBI) figures to Feb 2022 show good results for all sectors apart from pigs and we remind readers that the Countryside Facilitation Fund is open again.  Finally, we take a look at the UK potato area and yield for 2022 and forecasts for 2023 following a difficult year for the sector.

The Spotlight article this month looks at the details of the new Slurry Infrastructure Grant which is now open.

Click Here to access our December 2022 edition of Farming Focus.

If you require advice from one of our consultants, do not hesitate to contact them by email or phone.  Their contact details can be obtained by clicking here. Alternatively, your can also contact our office on 01664 503200 or email [email protected]

If you would like more detail on the topics covered above as well as additional articles on UK farm business matters, why not subscribe to our Professional Update bulletin (incorporating Andersons AgriBrief)? Over the course of each month, we give a concise and unbiased commentary on the key issues affecting business performance in the UK agri-food industry, and its implications for farming and food businesses. Please click on the link below for a 90-day free trial:

https://theandersonscentre.co.uk/publications/abc-professional-update/

Farming Focus – November 2022

In the November 2022 edition of Farming Focus we introduce Therese Coffey the new Defra Secretary of State and report on the first ever Agriculture Bill for Wales.  Read about the Tenancy Working Group’s 74 recommendations on how to deliver a more resilient tenanted sector.  Are you in need of advice to reduce air and water pollution on your farm?  Learn how all farms in England can now benefit from the support of Catchment Sensitive Farming (CSF) advisors.  We report on the support measures for bird keepers after they have been told to house all their birds to try and stop the spread of Avian Flu.  Are you an Arla producer?  Read about the new payments for sustainability activities being introduced.

We have two Spotlight articles this month.  The first looks at how the wheat market is moving eastwards and for those that might have missed it last month, we have also included details of the Future Farming Resilience Fund (FFRF) through which farmers in England can receive free farm consultancy advice from one of our consultants.

Click Here to access our November 2022 edition of Farming Focus.

If you require advice from one of our consultants, do not hesitate to contact them by email or phone.  Their contact details can be obtained by clicking here. Alternatively, your can also contact our office on 01664 503200 or email [email protected]

If you would like more detail on the topics covered above as well as additional articles on UK farm business matters, why not subscribe to Andersons’ AgriBrief Bulletin? Over the course of each month, we give a concise and unbiased commentary on the key issues affecting business performance in the UK agri-food industry, and its implications for farming and food businesses. Please click on the link below for a 90-day free trial:

https://agribrief.co.uk/

Farming Focus – October 2022

In the October 2022 edition of Farming Focus we consider Defra’s commitment to the environment following reports of a review of ELM, we also take a look at the Chancellor’s ‘mini-budget’ and the resulting economic fall-out; where will interest rates be next year?  Help with rising energy costs for non-domestic users will be available under the Energy Use Bill and we report on the English BPS 2022 rates just released.  Defra has also announced the projects which will be funded under the pilot phase of Landscape Recover (LR).  Finally, if you have Woodland Carbon Credits to sell, see when the next upcoming auction is.

We have two Spotlight articles this month.  The first looks at the Funding Boost for Rural Diversification and the second directs farmers to how they can receive Free farm consultancy advice from one of our consultants through the Future Farming Resilience Fund (FFRF).

Click Here to access our October 2022 edition of Farming Focus.

If you require advice from one of our consultants, do not hesitate to contact them by email or phone.  Their contact details can be obtained by clicking here. Alternatively, your can also contact our office on 01664 503200 or email [email protected]

If you would like more detail on the topics covered above as well as additional articles on UK farm business matters, why not subscribe to Andersons’ AgriBrief Bulletin? Over the course of each month, we give a concise and unbiased commentary on the key issues affecting business performance in the UK agri-food industry, and its implications for farming and food businesses. Please click on the link below for a 90-day free trial:

https://agribrief.co.uk/

Farming Focus – September 2022

In the September 2022 edition of Farming Focus see how you can utilise your CS & ES options for grazing and cutting earlier than normal to ease forage concerns.  We take a look at the rise in interest rates and report on the Nutrient Mitigation Scheme; could this be a further income stream for some land managers?  Defra would like to understand more about Methane-surpressing feed products; see details on its ‘Call for Evidence’.  Finally read how the Irish Government plans to meet its GHG emissions target including a 25% reduction from the farming sector.

Our Spotlight article this month looks at Fertilisers and CO2 as surging gas prices causes production to halt again.

Click Here to access our September 2022 edition of Farming Focus.

If you require advice from one of our consultants, do not hesitate to contact them by email or phone.  Their contact details can be obtained by clicking here. Alternatively, your can also contact our office on 01664 503200 or email [email protected]

If you would like more detail on the topics covered above as well as additional articles on UK farm business matters, why not subscribe to Andersons’ AgriBrief Bulletin? Over the course of each month, we give a concise and unbiased commentary on the key issues affecting business performance in the UK agri-food industry, and its implications for farming and food businesses. Please click on the link below for a 90-day free trial:

https://agribrief.co.uk/

Farming Focus – August 2022

In the August 2022 edition of Farming Focus we take a look at the Sustainable Farming Incentive; if you are already in CS it’s not quite as straight forward to also have an SFI agreement.   See how you can get a FREE farm business review.  We report that most English farmers should have received their 50% advance BPS payment and if you are considering extending your HLS or CS agreement it could now be under (more favourable) UK rules.  We take a look at the UK-Australia FTA and the latest farm profit figures for England.  Finally, we inform Welsh readers of two new grants that are open.

Our Spotlight article this month looks at future farm policy in Wales after proposals for the new Sustainable Farming Scheme have been announced.

Click Here to access our August 2022 edition of Farming Focus.

If you require advice from one of our consultants, do not hesitate to contact them by email or phone.  Their contact details can be obtained by clicking here. Alternatively, your can also contact our office on 01664 503200 or email [email protected]

If you would like more detail on the topics covered above as well as additional articles on UK farm business matters, why not subscribe to Andersons’ AgriBrief Bulletin? Over the course of each month, we give a concise and unbiased commentary on the key issues affecting business performance in the UK agri-food industry, and its implications for farming and food businesses. Please click on the link below for a 90-day free trial:

https://agribrief.co.uk/

Farming Focus InBrief – April 2022

  • If you require advice from one of our consultants, do not hesitate to contact them by email or phone.  If you do not have their details please contact the office on 01664 503200 or email [email protected]
  • Input prices were already high before the invasion of Ukraine but cost inflation has now been exacerbated. Between January 2021 and January 2022, the price of UK produced ammonium nitrate was up 145%, urea up 156%, and glyphosate up 307%.   Since the invasion, the value of ammonium nitrate has exceeded £900/t, up from £645/t in January.  The value of tractor diesel has also risen substantially, with some reports quoting 130p/l.  The high cost of inputs will challenge many businesses over the next 12 months and beyond.  The working capital of farms will be under significant pressure.  While the cost of outputs has risen, the level of cash required to operate has also increased rapidly.  Our Spotlight article looks how the rising costs are affecting our Model Farms.
  • The Chancellor, Rishi Sunak, used the Spring Statement on the 23rd March to announce a number of policies designed to mitigate the cost of living crisis.  The Statement came a day after the latest inflation figures were announced.  These showed year-on-year inflation in February (CPI measure) had risen to 6.8%. Even so, the 1.25% increase in National Insurance contributions will still be introduced in April, although the threshold at which it becomes payable will be increased to £12,570 (to come into force in July). The rate of fuel duty has been reduced by 5p/l and VAT on energy saving equipment (solar panels, heat pumps etc) has been cut to zero.  He also made the commitment to cut the basic rate of income tax by 1% to 19% by the end of the Parliament (2024).
  • Defra is consulting on binding environmental targets for England which could have a significant effect on agriculture over the coming years. These include water quality, the area planted to woodland, halting species decline and the creation of wildlife-rich habitats outside of protected sites.
  • The Bank of England increased the Base Rate by a further 0.25% on the 17th March.  This takes the cost of borrowing from 0.5% to 0.75%.  This is a response to increasing inflation.  The Bank is tasked with keeping inflation at 2% but, according to the Bank’s own forecast, increases in prices will hit 8% this spring.  The rise in interest rates is meant to bring inflation back towards the target over the medium term.  Many forecasters believe that there will be two further 0.25% rises before the end of 2022, taking rates to 1.25%.
  • The 5th  Woodland Carbon Guarantee auction will take place from midday on Monday 9th May to midday on Sunday 15th May 2022.  Applications to take part in the next auction can be submitted now and need to be made by midnight on Sunday 24th April.  Woodland creation projects accepted into the Woodland Carbon Guarantee scheme have the option to sell Woodland Carbon Units (WCUs) to the government every 5 or 10 years up to 2055/56.
  • It has been confirmed that Young Farmers and New Entrants will not be able to apply for entitlements from the National Reserve in England this year, except in respect of land which was leased, bought, or gifted prior to 17th May 2021. With De-linking of entitlements expected to take place in 2024 this is just another step in drawing the BPS to a close.
  • British Sugar has announced all contracts, irrespective of length, will receive at least £27 per tonne for the 2022/23 crop year.  The guaranteed £27 per tonne will apply to all beet for the crop which is about to be planted.  Any growers with a fixed contract price below this amount will have it raised to £27 per tonne.  Those whose contracts include a market bonus element will receive a guaranteed market bonus of £5.82, raising their price to £27 per tonne on delivery.  Any surplus beet for the 2022/23 crop will also be paid at £27 per tonne.
  • Defra has announced that the ’emergency’ authorisation of Syngenta’s Cruiser SB seed treatment for sugar beet has been granted for this year.  Used to control Yellow Virus, the use of the neonicotinoid is dependent on nine conditions being met.  This includes an initial threshold for use, meaning the seed treatment can only be used if the predicted Yellow Virus incidence is at or above 19% of the national crop on 1st March.  According to Defra, following what has been a relatively mild winter, modelling on 1st March predicted a 68% (!) level of virus incidence.  In 2018, 25% of the national sugar beet crop was lost to YV, with an estimated cost to processors and growers of £67 million.
  • A reminder that Countryside Stewardship (CS) is now open for applications (see https://theandersonscentre.co.uk/countryside-stewardship/). This includes the Higher-tier, Mid-Tier, Wildlife Offers and the stand-alone Capital Grant Scheme.  Many are having another look at CS, in part to try and retrieve some ‘lost’ BPS, but also because the domestic scheme has seen some improvements and flexibility.  Successful applications will commence 1st January 2023 and can be ended early where an ELM agreement has been approved.  Payments have been timelier and the penalty/inspection process less penal.  Most will have some areas on their holding that are less productive and could probably be entered into CS.  Please contact one of our consultants if you are considering CS, they can help you prepare and submit a cost-effective CS application but only if initial discussions conclude it is financially viable.
  • Our Special Edition in February also included details on the Lump Sum ‘retirement’ scheme which will be in operation this year only (see https://theandersonscentre.co.uk/lump-sum-payments/) Do not hesitate to contact one of our consultants if this is something that maybe of interest to your business and they can work through the details with you.
  • The Andersons Centre will be at Dairy Tech on Thursday 7th April.  Please join us on stand B50 where our consultants will be available to speak to. Please note that we will also be selling copies of the 52nd edition of the John Nix Pocketbook on the stand and there will be a 20% discount for purchases on the day.

This month’s Spotlight looks at the impact of cost inflation on two of our Model Farms Click Here for further information.

If you would like more detail on the topics covered above as well as additional articles on UK farm business matters, why not subscribe to Andersons’ AgriBrief Bulletin? Over the course of each month, we give a concise and unbiased commentary on the key issues affecting business performance in the UK agri-food industry, and its implications for farming and food businesses. Please click on the link below for a 90-day free trial:

https://agribrief.co.uk/

 

Spotlight on Impact of Cost Inflation

It is hugely difficult to budget in any farming sector with such large and sudden changes in prices and costs.  However, we have produced some updated figures for our Friesian Farm model ahead of the Dairy Tech show on the 7th April.  And with such significant rises in costs we have also revisited our Loam Farm model budget.  The figures are summarised in the tables below.

For Friesian Farm, it can be seen that the 2021/22 year just ending was profitable for the farm as milk prices increased and costs, whilst rising, had not yet hit current levels.  The upcoming 2022/23 year shows the massive increase in the cost of production.  Although the budgeted milk price is also moving up strongly, it results in a margin from production only just above break-even levels and the worst for a few years.

Friesian Farm is a notional 210 cow business.  It has been used to track the fortunes of British dairy farming for well over a decade.  It has a year-round calving system, like most of the UK industry, but it is trying to maximise yield from forage.  The farm comprises 130 hectares (of which 60 hectares are rented on an FBT).  The proprietor provides labour along with one full time worker (plus casual/relief).  The table above shows the farm’s actual results for the two previous milk years (April to March), an estimate for the current 2021/22 year then a forecast for 2022/23.  

The situation is similar for Loam Farm.  The table below shows the results for harvest years 2020 and 2021, a provisional figure for 2022 and a forecast for 2023.  For harvest 2022 fertiliser was purchased the previous summer, i.e. before the recent price hikes and therefore shows spectacular profits for the year.  For harvest 2023, the significant increase in variable costs can clearly be seen, together with fuel costs in the overheads.  Meaning the margin from production is negative.  The fall in BPS is mitigated by involvement in the Sustainable Farming Incentive (SFI).

Loam Farm is a notional 600 hectare business that has been used since 1991 to track the fortunes of British combinable cropping farms.  It is partly owned and partly rented and is based on real-life data. It has 1 full-time worker and a harvest casual labourer.

 

 

 

 

 

 

 

 

 

 

 

Farming Focus InBrief – March 2022

  • If you require advice from one of our consultants, do not hesitate to contact them by email or phone.  If you do not have their details please contact the office on 01664 503200 or email [email protected]
  • The application window for the BPS in England will open on the 15th March and runs until the 16th May.  In the meantime, it is already possible to transfer land and entitlements online in England in readiness for this year’s BPS applications.  Claimants have until 16th May (the 15th is a Sunday) to complete the transactions.
  • For those who are taking place in the SFI Pilot, the payment rates have been revised.  Some of the payments have remained the same whilst others have increased.  Some Pilot agreements will have already started, others are still being agreed but the new payments will apply from the start of all agreements. The first batch of quarterly payments under the SFI Pilot have now been made to those participants whose agreements commenced on November 1st.    Not all applications had been processed by this initial start date but offers have been sent out on a regular basis since. 
  • The application window for the first round of Landscape Recovery pilot projects is now open and will close on 24th May 2022.  Landscape Recovery is the third component of ELM.  It is for farmers and land managers, including groups, who want to take a more radical and large-scale (500-5,000 Ha) approach to producing environment and climate goods on their land, such as establishing new nature reserves, restoring floodplains to help reduce the risks from flooding, or creating woodland and wetlands.  The first round will focus on species recovery and river restoration.
  • Defra has started to send out Agreements for the first round of the Farming Equipment and Technology Fund (FETF).  Agreements need to be accepted by midnight on 1st April (extended from 4th March), via the dedicated FETF acceptance portal.  Claimants then have until midnight on 31st October 2022 (also extended by one month) to buy and install the items and submit a claim for payment.
  • Defra has announced the new Slurry Investment Scheme will now be incorporated into the Farming Investment Fund and will not be a separate scheme. Further details should be available through the spring, but it is expected grants to help farmers achieve 6 months slurry storage will be available in the autumn.
  • The Bank of England increased UK base rates on Thursday 3rd February from 0.25% to 0.50%.  This is in response to rising inflation.  Further increases are expected.
  • A reminder that Countryside Stewardship is now open for applications (see https://theandersonscentre.co.uk/countryside-stewardship/ ). This includes the Higher-tier, Mid-Tier, Wildlife Offers and the stand-alone Capital Grant Scheme.  Many are having another look at CS, in part to try and retrieve some ‘lost’ BPS, but also because the domestic scheme has seen some improvements and flexibility.  Successful applications will commence 1st January 2023 and can be ended early where an ELM agreement has been approved.  Payments have been timelier and the penalty/inspection process less penal.  Most will have some areas on their holding that are less productive and could probably be entered into CS.  Do not hesitate to contact one of our consultants if you are considering CS, they can help you prepare and submit a cost-effective CS application but only if initial discussions conclude it is financially viable.
  • Our Special Edition in February also included details on the Lump Sum ‘retirement’ scheme which will be in operation this year only (see https://theandersonscentre.co.uk/lump-sum-payments/) Do not hesitate to contact one of our consultants if this is something that maybe of interest to your business and they can work through the details with you.
  • Trade patterns for farm goods on the island of Ireland have changed significantly as a result of Brexit. Latest data from the Irish Central Statistics Office (CSO) show that total agri-food trade between Northern Ireland (NI) and the Republic of Ireland (ROI) has increased significantly (by 42%) in 2021 versus 2020.  NI agri-food imports from ROI have increased by 47% with regulatory controls imposed on GB to NI trade as a result of the NI Protocol being the primary driver. Corresponding NI exports to ROI have also risen by 38% over the same period, showing that increased all-island agri-food trade is happening in both directions.

This month’s Spotlight looks at the impact Russia’s invasion of Ukraine is having on the arable market Click Here for further information.

If you would like more detail on the topics covered above as well as additional articles on UK farm business matters, why not subscribe to Andersons’ AgriBrief Bulletin? Over the course of each month, we give a concise and unbiased commentary on the key issues affecting business performance in the UK agri-food industry, and its implications for farming and food businesses. Please click on the link below for a 90-day free trial:

https://agribrief.co.uk/