Category: News

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:

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

Farming Focus – May 2023

The May 2023 edition of Farming Focus reports on how we are still awaiting further information on the six new SFI Standards.  Are you thinking of a farm diversification? If so, there could be some funding available.  We take a look at what joining the Comprehensive and Progressive Trans-pacific Partnership might mean and report on the Genetic Technology (Precision Breeding) Act which has received Royal Assent.  Will a ban on ‘Parallel’ PPPs mean higher spray prices and less choice?  If you are interested in the development of environmental markets Defra has released a new paper which is worth a read.  Finally, the Water Management Grant and the Animal Health and Welfare are both open and a reminder that BPS and SAF claims must be submitted by 15th May.

The Spotlight article this month reports on Defra’s recent announcement on more details on how delinking of the BPS is to work including transferring of the Reference Amount.

Click Here to access our May 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 – 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/

Cost of Farming Squeeze Continues

Agricultural inputs’ inflation (Agflation) continues to outpace general economic inflation (CPI) as well as agricultural outputs and food prices (denoted by CPI Food). This is the key finding of Andersons’ Agflation estimates for January. The latest estimates put Agflation at 18.7% annually, significantly ahead of agricultural outputs (11.1%). Although the CPI and CPI Food indices continue to rise, currently standing at 10.5% and 16.8% respectively, there is still a gap between the food price inflation that consumers face and the increased input costs that farmers must manage. Therefore, UK agriculture continues to experience a cost of farming squeeze.

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.

Although Agflation remains higher than food prices, it is declining. In July 2022, it peaked at 26.3%. That said, throughout 2022, agricultural input cost inflation generally surpassed price rises for agricultural outputs. The only exception came in October and November when both indices were aligned. During December and January, the agricultural outputs’ inflation rate has more than halved, declining from 22.9% in October to 11.1% today. It is now 7.6 percentage points lower than agricultural inputs’ inflation.

This signifies a challenging period ahead for farmers as the gap between input cost rises on the one hand and output prices on the other continues to widen. Global Dairy Trade (DGT) auction prices, taken as a proxy for global milk prices, have declined by 6% in the past month. Feed wheat prices (£213/t) are also down by 6% versus December and are returning to levels seen this time last year when prices stood at £210/t. The implications of these trends will require careful consideration.

Whilst general economic inflation looks to have peaked and several commentators are forecasting that the inflation rate will decline significantly during 2023, food prices continue to rise. This should not come as a surprise at this juncture because there tends to be a lag between the rates of inflation for agricultural commodities (inputs and outputs) and the inflation rate for food prices. In the past year or so, this has been in the region of 6 months. With agricultural inflation peaking in July, one would anticipate that the CPI Food index will also peak shortly, if it has not already done so.

Inflation and the impact of the ‘cost-of-living crisis’ on UK agriculture will be key themes during the forthcoming Andersons’ Spring Seminars on the Prospects for UK Agriculture which will be taking place across 11 UK venues from 24th February. The Seminars will examine UK farming’s profitability and performance, upcoming farm policy changes, trade, inflation and the impact of the cost-of-living crisis. They also provide sector-by-sector analysis and profitability outlook for the farming industry. Andersons’ Seminars have been running for 26 years and are renowned across Britain for informing agri-food professionals on how the industry is set to evolve in the next year and beyond, and the implications thereof for organisations serving the sector.

Despite the inflationary pressures that UK farming is facing, we have held the cost of the seminars at the same level as last year. Furthermore, if you book online via you will receive, via e-mail, a bonus complimentary copy of our most recent Professional Update bulletin (worth £50). More information including booking details is available via: https://www.theandersonscentre.co.uk/seminars

Ends.

Notes:

No. of Words: 658

Authors: Michael Haverty and Richard King

Date: 31st January 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 – 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/

Cost of Farming Squeeze Apparent

For the first time, Andersons’ Agflation estimates include an index of Agricultural Outputs prices. The July estimates put Agflation at 23.5% annually, more than double that of agricultural outputs (10.1%). When Agflation is plotted against output prices, food inflation (denoted by CPI Food) and general economic inflation (CPI), which based on updated data for July 2022 now stand at 12.8% and 10.1% respectively, it becomes apparent that there is a cost of farming squeeze taking place.

In the months preceding June 2022, agricultural output prices generally rose in parallel with Agflation, albeit at a slightly lower rate. However, since then, these indexes have diverged considerably. Whilst recent falls in commodity grain prices have been the main driver, it also suggests that consumers are struggling to afford rising food prices and, that retailers and food service providers are reluctant to pass on further increases. With energy prices set to rise further towards winter and the Bank of England projecting that inflation will rise to 13% by year-end, the extent of the challenges facing the UK economy are stark.

Andersons ‘Agflation’ and UK Consumer Prices Index (CPI) – 2015 to 2022

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.

Rising energy prices will also continue to affect Agflation in terms of fuel, fertiliser and feed costs. Therefore, Agflation will remain at elevated levels for this year and beyond.

Some sectors are better positioned to withstand these increases than others. Milk prices are up by 41% since July last year. Cereal prices, although lower recently, are still around 29% higher than a year ago. However, livestock prices, generally up 10-19%, are not rising as quickly as Agflation, with egg and fresh vegetable prices falling. Several of these sectors have been struggling in terms of profitability. Additional inflationary pressure on inputs will stretch working capital resources further.

Although advance BPS payments in England during July are welcome, BPS payments are declining and will by 35% lower in 2023 than in 2020. Successor schemes including the Sustainable Farming Incentive (SFI) will not bridge the income gap. If farmers are unable to get higher prices for their outputs, many will be severely squeezed in the months ahead. Difficult decisions will need to be made on cropping and enterprise viability. This will have direct implications for food supply, coming at a time when severe droughts are being experienced elsewhere, particularly in Europe.

In such times, having access to the latest available information likely to impact farmers’ decision-making is crucial. Inflationary challenges, and other key issues affecting UK farming, will be examined in much more detail during Andersons’ forthcoming Webinar, taking place on 22nd September. Tickets are priced at £70 per place, the agenda is set-out below and places can be booked by visiting: https://register.gotowebinar.com/register/3842561566295604752 

Agenda – UK Farming Prospects – Autumn Update

  • Farm Profitability and Finance Performance
  • Trade Update
  • Farm Policy Updates – England, Scotland and Wales
  • Sector Updates
    • Arable
    • Dairy
    • Grazing Livestock
    • Pigs and Poultry
  • Summary and Conclusions

Ends.

Notes:

No. of Words: 596

Authors: Michael Haverty and Richard King

Date: 10th August 2022

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.