Farming Focus – March 2024

In the March 2024 edition of Farming Focus we take at look at Rishi Sunak’s announcements at the NFU Conference, including a doubling of the SFI Management Payment.  We notify readers that it is now possible to transfer delinked (BPS) payments if necessary.  We also discuss the latest profitability figures for our Friesian Farm model.  In Wales the Woodland Creation grant is now open until November, have a look to see the application windows for other Welsh schemes.  Finally we remind English farmers that the Improving Farm Productivity Grant is open until 21st March; please contact one of our consultants if you require any help in apply for this grant.

The Spotlight article this month takes a look at the Farming Equipment and Technology Fund (FETF) which is expected to open shortly.  The guidance is already available and we provide links to the equipment (including new items) which are available under three themes in this Round.

Click Here to access our March 2024 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? 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:

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Farming Focus – February 2024

In the February 2024 edition of Farming Focus we notify readers that the Improving Farm Productivity grant, including solar is now open in England.  We confirm BNG rules are required from 12th February and also take a look at what is happening regarding Nutrient Neutrality.  Frustrated waiting for RPA to make changes to your land parcels? Read how a new online system is set to speed the process up.  Welsh organic farmers will be pleased to read of support available this year.  Have your say on free-range egg legislation, the Government is consulting on rules surrounding mandatory housing and egg labelling.  We also report that the long awaited Statutory Instrument (SI) on milk contracts will be laid before parliament in February and that there has finally been an agreement over the sugar beet contract for the 2024 crop.  And remaining with sugar beet, Defra has confirmed emergency use of a neonicotinoid seed treatment will be allowed if thresholds of virus yellows are reached.

The Spotlight article this month takes a look at our Meadow Farm model.  Meadow Farm is a mixed family farm, typical of many across the country, but it struggles to make a profit without the help of the BPS.  See how we have retsructured Meadow Farm to make it more sustainable for the future.

Click Here to access our February 2024 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? 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:

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Farming Focus – January 2024

In the January 2024 edition of Farming Focus we notify readers that grants for Improving Farm Productivity, including solar are due to open in January in England.  We confirm the sugar beet price contract for 2024 has (finally) been agreed and report on the BPS 2023 rates for English claimants.  Also in England, the cross-compliance rules ended on 31st December 2023 – What does this mean for you?  In Wales the second stage of the Enhanced Nutrient Management approach has been laid before the Senedd, read what this means for Welsh farmers.  Are you reliant on migrant workers?  What could the proposed changes to immigration rules mean for your business?  Finally, read about the Government’s announcements on ‘Protected Landscapes‘ including a name change for ANOBs and another round of the NEIRF now being open.

We have two Spotlight articles this month.  The first one looks at more details on the proposed Sustainble Farming Scheme (SFS) which the Welsh Government is now consulting on and the second Spotlight article focuses on the recent annoucement by Defra on a combined SFI/CS offering from summer 2024.

Click Here to access our January 2024 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? 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:

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Farming Focus – December 2023

In the December 2023 edition of Farming Focus we take a look at the latest Farm Business Income figures for England covering 2022/23 and how the first couple of months of the Sustainable Farming Incentive (SFI) scheme have gone.  Defra has also announced that the Slurry Infrastructure Grant Online Checker is now open; get in touch if you require advice on applying.  For farmers in Wales we have included advanced notice of the application dates for various grants available for the industry.  We finish this edition with news that the EU has re-approved the authorisation of Glyphosate and what this could mean for UK farmers.

The Spotlight article this month focuses on Delinked BPS Payments and what this means for businesses.

Click Here to access our December 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? 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:

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Farming Focus – November 2023

In the November 2023 edition of Farming Focus we update readers on the SFI – there is no requirement to send in an EoI now.  Please contact one of our consultants if you would like help in submitting an application; payments are already being received under SFI 2023.  All SFI 2022 agreement holders have been notified of termination, please get in touch if you want to switch to SFI 2023.  Do you want to collaborate with other farmers to improve the environment, if so, read about a further round of the CS Facilitation Fund just opened.  Is your HLS due to expire in 2024?  You may be offered a further 4-year extension.  We include notice of proposals from the AHDB to increase Levy rates.  We report on Welsh advanced BPS payments and also on the disappointing news that no agricultural trades have been included on the latest Shortage Occupation List.  Read about legislation to ensure imports of seeds and sprays from the EU can continue and the lack of agreement on the beet price for the 2024 crop.  Finally have your say on changes to the Cattle Tracing System (CTS), a consultation is now open.

The Spotlight article this month reports on the Slurry Infrastructure Grant which is opening for Round 2 sometime this month (November).  Guidance is already available and there have been some changes since Round 1.

Click Here to access our November 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? 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:

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Farming Focus – October 2023

In the October 2023 edition of Farming Focus we report on ‘accelerated payments‘ for the early SFI adopters and the opening of the new Calf Housing Grant.  If you require assistance with applying to either of these grants please get in touch with one of our consultants (details can be found below).  Ongoing technical problems means some CS Mid Tier applications are still outstanding.  We report on the delay to the introduction of the BNG requirement and on the House of Lords blocking the Government’s plans to scrap Nutrient Neutrality commitments; what does this mean for these markets?  Those blighted by footpaths through their farmyards may find it easier to get them diverted following new guidance.  The latest edition of the renowned John Nix Farm Management Pocketbook has just been published.  We also look into the loss of parallel spray imports and that the new interim environmental scheme in Wales is open for EOIs.

The Spotlight article this month looks at the latest budget and forecasts for The Andersons Centre’s Meadow Farm, a notional mixed farm set it the Midlands.

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

There is also an opportunity to earn £20 by sharing your opinions on Biodiversity as part of a survey being undertaken by England Marketing on behalf of Osnabrück University and the James Hutton Institute.

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? 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:

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Farming Focus – September 2023

In the September 2023 edition of Farming Focus we report on changes to the Nutrient Neutrality rules – what does this mean for farmers? The deadline for applications to Countryside Stewardship Mid Tier is now 15th September.  Those farming in Wales have their first ever Welsh Agriculture Act, read what this means.  We report on further delays to the implementation of post-Brexit border controls and on a further increase to the base rates, read how high forecasters think it will go.  CF Industries is closing its ammonia production facility, what does this mean for AN fertiliser in the UK?  We remind purchasers of AN fertiliser that photo ID is required as of 1st October.  Finally read about support for the Welsh food and drinks industry.

The Spotlight article this month looks at the latest developments with the Sustainable Farming Incentive (SFI) including rule changes, when it will be open for applications and how to submit an expression of interest in SFI 2023.

Click Here to access our September 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? 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:

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Farming Focus – August 2023

In the August 2023 edition of Farming Focus we report that most English farmers should have received 50% of their 2023 BPS payment.  Do you have a 2022 SFI Agreement?  If so, read why Defra will be writing to you.  For those wanting to enter SFI 2023, you may have to wait until October to apply.  We report on a new interim agri-environment scheme for Welsh farmers and on recent announcements from the Welsh Government on the Sustainable Farming SchemeCross Compliance ends in England next year, what does this mean for farmers?  Finally, we report on the decline in fertiliser use due to price rises and on the future of Glyphosate.

The Spotlight article this month looks at the new Calf Housing Grant.  Defra has released more details ahead of the scheme opening, which is expected shortly.

Click Here to access our August 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? 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:

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Impact of UK Trade Deals with Four Non-EU Partners on UK and Scottish Agriculture

The Scottish Government has recently published a Summary Report from a study that The Andersons Centre undertook in 2022 to assess the impact on Scottish agriculture of Free Trade Agreements (FTAs) between the UK and four selected non-EU partners, namely: Australia; New Zealand (NZ); Canada; and the Gulf Cooperation Council (GCC). 

It quantifies the FTA impacts on selected Scottish agricultural sectors namely: cereals (wheat and barley); livestock (dairy, beef and sheep); and potatoes. This has been done using two FTA scenarios, Low Liberalisation (tariff-free trade with a 25% reduction in non-tariff measure (NTM) costs) and High Liberalisation (tariff-free trade with a 50% NTM costs’ reduction). These scenarios are compared to the Main Baseline whereby the UK has left the EU and the Trade and Cooperation Agreement (TCA) is in place, as are the rollover trade deals that the UK agreed during the Brexit process. Additionally, a top-level comparison was given between the Main Baseline and an Alternative Baseline (No-Brexit) scenario.

The research was undertaken in collaboration with Wageningen University and Research (WUR) and used a combination of MAGNET, a computable general equilibrium economic model to assess the individual and aggregated impacts of each FTA, as well as desk-based research and interviews with industry experts representing organisations in Scotland and the UK, Australia, New Zealand, Canada and the Gulf region.

Assessments were also undertaken on the impact of tariffs, non-tariff measures (NTMs) and tariff rate quotas (TRQs) on UK trade with each selected partner, as well as the EU. These modelling results were then used in conjunction with additional analyses on potatoes to ascertain the impact of the FTAs on UK and Scottish agri-food output and farm-level performance in Scotland. 

A PDF version of the Summary Report is available via the Scottish Government website.

Farming Focus – July 2023

In the July 2023 edition of Farming Focus we report on the upcoming grant funding in England including large-scale capital grants, calf housing, barn-top solar and another round of the Slurry Infrastructure Grant.  We take a look at the recent rise in UK Base Rates and at how productive UK agriculture has been.  We report on the change in area of land farmed organically and on the AHDB’s proposed increase in levy rates.  Are you interested in driving nature recovery?  Read about the next round of the Natural Environment Investment Readiness Fund which is being targeted at groups of farmers.  Thinking about planting trees in Wales?  Take a look, the final grant window for this year opens shortly with increased payment rates.  Do you farm in the English Uplands?  Read how Defra has equalised stewardship rates for upland and lowland farms for certain options.

The Spotlight article this month looks at the latest announcement from Defra on the Sustainable Farming Incentive (SFI), including all the options available, together with payment rates.

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

UK Feed Supplements White Paper Study

The Andersons Centre (Andersons) is undertaking a white paper study on key trends in the UK grazing livestock feed supplements’ market. As part of this research, we are seeking input from grazing livestock farmers on current usage of feed supplements, purchasing behaviour, key drivers of decision-making and how future changes are likely to shape how feed supplements are used. The survey takes 15-20 minutes to complete. All input will be treated with the utmost confidentiality and no information or opinion provided will be sourced individually to any participant or to any participant’s organisation. As a gesture of our thanks for your input, we are offering a complimentary copy of the John Nix Farm Management Pocketbook. To be eligible for a complimentary copy, all sections of the survey must be completed. The survey closes on 7th July. You can participate in the survey via: https://www.surveymonkey.co.uk/r/CQ9ZRFG

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? 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:

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Agflation has Peaked, but its Corrosive Effects Linger

After rising sharply since 2021 and peaking in July 2022 at 28.4%, agricultural inputs’ inflation (Agflation) has been in free-fall during the first half of 2022 and has become deflationary. The latest estimates suggest that agricultural input prices in May 2023 are 3% lower than in May 2022. Agricultural output prices have broadly mirrored the trend for agricultural inputs and have also become deflationary, currently standing at -2.3%. This is in sharp contrast to food prices (depicted by CPI Food), which in May 2023 are estimated to have risen by 18.7% year-on-year.

Although, it appears that food prices for consumers are continuing to rise whilst agricultural prices are falling, importantly, there is a lag between how agricultural prices evolve and how these prices are reflected in retail prices. Back in 2017, when agricultural output prices reached their highest point in May of that year (at 13.2%), the CPI Food index did not peak until the following November (at 4.1%). This reveals a lag of about 6 months and indicates that the highest extent of inflation in food prices was significantly lower than for agricultural outputs. A key reason for this is that agricultural raw materials are one of several inputs that go into supplying food to consumers. Other inputs such as labour, energy, and packaging are also significant, and traditionally are much less volatile than agricultural prices.

Andersons ‘Agflation’ and UK Consumer Prices Index (CPI) – 2015 to 2023

Sources: ONS, Defra and Andersons

Notes: Andersons’ Agflation index builds upon on Defra price indices for agricultural inputs and weights each input cost (e.g., animal feed) by the overall spend by UK farmers. Andersons then provides a more up-to-date estimate of the price index for each input cost category.   The Agricultural Outputs index is compiled in a similar manner. Defra price indices for agricultural outputs are weighted based on their overall contribution to UK farming output. Andersons then provides more recent estimates for each output category, with the index being updated as the official Defra data becomes available.
* represents the % change versus the same month a year earlier.

That said, the combined effects of Brexit, Covid and the Russia-Ukraine conflict have exerted multiple pressures on both agricultural commodities, labour and energy inputs meaning that recent CPI Food inflation has almost reached 20%. However, there are signs that food price inflation might have peaked in March 2023, about 7 months after agricultural output prices had done similar.

Furthermore, although the chart above shows that inflation is trending downwards, it disguises that agricultural and food prices today are substantially higher than they were two years ago, as the indexed chart below shows. Agricultural input prices are 24% higher, agricultural outputs are up 15% whilst food prices are up by 29% in that time. In this time, prices elsewhere in the economy, denoted by the CPI index are also up by 18%. This reveals the corrosive pressure that inflation exerts on consumers’ incomes. Understandably, workers will seek pay rises to mitigate these increases. This, in turn, will mean that inflationary pressure across the economy generally will continue to linger, especially as annual inflation (8.7% (CPI)) remains way higher than the Bank of England’s 2% target.

Indexed Chart of Agricultural Inputs, Outputs, Food Prices and CPI – 2015 to 2023

Sources: ONS, Defra and Andersons

With consumer incomes under pressure, there is even greater focus on food prices and, by implication, the prices that farmers receive. All the while, farmers too are contending with their costs being significantly higher than two years’ ago. This signifies further challenges ahead, at a time when recent Free Trade Agreements with Australia and New Zealand have entered into force. Although farmers in those countries have also had to contend with inflationary pressures, it suggests that a delicate balancing act will be needed so that British prices remain competitive, whilst permitting farmers to cover the significant cost increases that they have experienced in the past two years.

Indeed, a key reason why agricultural inflation has come down is because the annualised figures compare with a given month a year earlier, a period when the world was adjusting to the shocks caused by the start of the Russia-Ukraine conflict. When annual inflation is compared to a period after which costs had increased considerably, it is unsurprising that the rate of increase has slowed, or turned negative in the case of agflation.

In such times, it is more important than ever for farmers and those that transact with farmers to be aware of the costs that farmers face. The Agricultural Budgeting and Costing Book contains all the farm and rural business information you need in one publication. It is concise, clear, and easy-to-use. The information is updated every six months, so you are always using the most relevant data, something which is especially vital during inflationary periods. The contents include;

  • Fully updated gross margins for all farming sectors, crops, and livestock, including net margins for key enterprises.
  • Sensitivity analysis and discussion of market prospects.
  • The widest range of information on alternative enterprises, diversification, and non-farming income sources available in any UK publication.
  • Explanation of the support systems and grants across GB, including BPS rules and rural grants. An outline of post-Brexit farm policy.
  • Farming costs including forage, feed, fertiliser, and pesticides.
  • Overhead cost data covering machinery, labour, contracting, building costs, and rents.
  • A vast array of general reference information for the farming sector.

For nearly 50 years, The Agricultural Budgeting and Costing Book has been providing industry leading farm management and costings information to agricultural advisors across the UK and is the leading publication of its kind in the industry. The 96th Edition, or an annual subscription (2 editions) can be ordered via The Andersons Centre website – https://theandersonscentre.co.uk/shop/

Ends.

Notes:

No. of Words: 966

Authors: Michael Haverty and Richard King

Date: 21st June 2023

This news release has been sent from The Andersons Centre, 3rd Floor, The Tower, Pera Office Park, Melton Mowbray, Leicestershire LE13 0PB. For further information please contact Michael Haverty on +44 (0)7900 907 902 or Richard King via +44 (0)7977 191427. 

Farming Focus – June 2023

The June 2023 edition of Farming Focus takes a look at Defra’s latest farming income figures and our forecasts for the coming year.  We also report on the Government’s response to the Rock Review of Tenancy legislation.  The UK’s trade deals with Australia and New Zealand came into force on 31st May – the first negotiated by the UK Government.  Do you want to make landscape-scale change?  The third element of ELM – the Landscape Recovery scheme is open for the second round of applications.  We report on GB potato production which is forecast to shrink in 2023.  The BoE increased UK interest rates again and we finish on some research released by AHDB comparing costs of production in the UK with other key competitor nations.

The Spotlight article this month is on one of our model farms – Friesian Farm.  Updated figures show a record ppl profit in the year just finished.  But falling milk prices see margins forecast to disappear this year.

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

UK Feed Supplements White Paper Study

The Andersons Centre (Andersons) is undertaking a white paper study on key trends in the UK grazing livestock feed supplements’ market. As part of this research, we are seeking input from grazing livestock farmers on current usage of feed supplements, purchasing behaviour, key drivers of decision-making and how future changes are likely to shape how feed supplements are used. The survey takes 15-20 minutes to complete. All input will be treated with the utmost confidentiality and no information or opinion provided will be sourced individually to any participant or to any participant’s organisation. As a gesture of our thanks for your input, we are offering a complimentary copy of the John Nix Farm Management Pocketbook to the first 30 respondents. To be eligible for a complimentary copy, all sections of the survey must be completed. You can participate in the survey via: https://www.surveymonkey.co.uk/r/CQ9ZRFG

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:

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