Farming in Focus InBrief – April 2021

  • Andersons’ consultants are continuing to support their clients during the pandemic. If you require any advice, please contact your  usual consultant, or the office on 01664 503200 or email [email protected].
  • The application window for Basic Payment Scheme claims has now opened in all parts of Great Britain. The deadline for submission without incurring a penalty is 17th May this year, as 15th May falls on a Saturday.  The biggest change in the scheme is the removal of most of the Greening requirements (Ecological Focus Areas are still required in Scotland).  This should make the process of claiming somewhat easier.  The entitlement usage rule, which used to mean, at least once in every two years all entitlements needed to be used in a single claim, has also been abolished.  Meaning unused entitlements will not be removed from claimants. In England, the annual revenue claims under Countryside Stewardship and Environmental Stewardship are also open.   Again, the deadline is the 17th  If you need advice on completing your 2021 BPS application or an Agri-environment revenue claim, please contact your usual consultant or 01664 503200 or email [email protected].
  • Morrisons has pledged to be the first supermarket to be supplied by net-zero farms.  The supermarket has said it will work with its 3,000 suppliers to help them become zero carbon emitters by 2030.  Waitrose has also committed to be supplied by net zero farms by 2035.  Morrisons expects eggs will be the first products to reach this status and this could be as early as 2022.  Lamb, fruit, vegetables, pork and beef will then follow. The retailer’s Livestock and Produce Teams will initially work with a small number of their suppliers to create net zero carbon farm ‘models’.  Once these ‘blue prints’ have been established they will be rolled out across all of the retailer’s suppliers to enable all food to be produced in a climate friendly way.
  • The Farm Business Grant opened in Wales on 1st March.  This is the 8th Expression of Interest EoI) for the scheme which pays up to 40% towards the cost of specific capital items which have been pre-identified to improve the economic and environmental performance of the business.  Applications are made via RPW Online.  The deadline for EoI is 9th April 2021.  Further information is available via:
  • The Swedish company Oatly, that produces alternatives to dairy products from oats, plans to open its first UK factory in 2023.  The facilities which will be based in Peterborough, Cambridgeshire will initially produce 300 million litres of oat drinks per year, increasing to a capacity of 450 million litres.  According to the company it will use oats from across the UK which will be a boost for the domestic crop, which has seen a resurgence in recent years.
  • Cereals 2021 will now be held on June 30th – July 1st this year.  Under the Government’s lockdown exit strategy, restrictions are due to end on 21st June, organisers have therefore decided to move the event from the original June 9th -10th in order to accommodate the maximum number of visitors and exhibitors.  The event will continue to be held at Boothby Graffoe, Lincolnshire with the format remaining the same as in previous years.
  • The Budget, on the 3rd March continued support for the economy to cope with the effects of the Covid-19 pandemic whilst making the first, tentative, steps towards rebuilding the public finances. The economic outlook is set to improve later this year as lockdown measures are gradually unwound.  The UK economy is forecast to have shrunk by 9.9% in 2020 – the largest contraction for 300 years.  The latest forecast from the Office of Budget Responsibility (OBR) indicates that the economy will rebound with 4% growth in 2021 followed by an increase of 7.5% the year after.
  • The effect of Brexit can be seen in sharply reduced trade volumes with the EU. The Office for National Statistics (ONS) recently published UK trade data for January 2021.  Unsurprisingly this has revealed significant drops in food and live animals trade with the EU; there has been a 64% drop in exports to the EU, whilst imports from the EU have fallen by 24%.  More time is needed before definitive conclusions can be drawn, however.  The situation has improved since January and traders who are well-organised are getting through the EU border controls.  It will be mid-year before a definitive picture will emerge as agri-food trade is often lower during January to March.  Trade should recover somewhat but probably not to the same levels as before.  The significant decline in EU imports also presents opportunities for domestic suppliers to capture a greater proportion of the UK market, particularly in perishable agri-food products.  This will mean that there will be winners as well as losers as a result of Brexit.

This month’s Spotlight looks at the Sustainable Farming Incentive (SFI) pilot scheme, it gives details of the different ‘Standards’ and payment levels released by Defra; a first look at this component of ELM. Click Here for further information.

If you would like more detail on the topics covered above, 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:


Farming in Focus InBrief – February 2021

  • Andersons’ consultants are continuing to support their clients during the pandemic. If you require any advice, please contact your  usual consultant, or the office on 01664 503200 or email [email protected].
  • The Environment Bill has passed the Committee stage in the House of Commons.  It now moves on to the House of Lords.  However, due to a lack of Parliamentary time, the passage of the Bill will be delayed until the start of the next session in May. It is now expected to become law in the autumn.
  • All parts of Great Britain have published their cross-compliance guidance for 2021. In all countries the requirements are pretty-much identical to those for 2020.  The main change is how the rules and inspections are enforced – with Brexit there is now more flexibility on how the inspection regime operates.  The English guidance can be found at –; the Welsh version at – has also published a useful list of what is required at a cross-compliance inspection this can be found at Cross compliance inspections: information needed for an inspection – GOV.UK (
  • The Seasonal Agricultural Workers Scheme (SAWS) will be extended to 30,000 places for 2021. The Government has announced the Pilot scheme, which ran with 2,500 places in 2019, and 10,000 in 2020 will be extended, and expanded, for the coming year, but the numbers still fall short of the estimated 80,000 seasonal workers required.
  • Defra has launched a consultation on the rules surrounding Gene Editing (GE) which could see approvals made easier. It is Defra’s view that organisms produced by GE or by other genetic technologies should not be regulated as GMOs (as is the case now under retained EU legislation) if they could have been produced by traditional breeding methods.  Brexit allows the UK to change this legislation.  The consultation can be found via Responses by Wednesday 17th March 2021.
  • Defra has authorised the emergency use of neonicotinoids on sugar beet seed in 2021.  The authorisation is for the use of Syngenta’s Cruiser SB seed treatment in England only, once a threshold for virus levels has been reached.  The emergency authorisation has strict conditions attached including:
    • the application rate will be below the normal commercial rate
    • no flowering crop is to be planted within 22 months of the sugar beet crop, with no oilseed rape crop to be planted within 32 months  of the sugar beet crop
    • an industry-recommended herbicide programme must be followed to limit flowering weeds in and around the sugar beet crop.
  • The UK sugar industry faces increased competition after it was confirmed the Government’s proposed Autonomous Tariff Quota allowing imports of 260,000 tonnes of raw sugar per year without having to pay the UK’s import tariff of £280 per tonne will be enacted.  This is likely to increase price pressure in the UK market as low-cost cane sugar competes with UK beet.  The Government argues that this volume will merely replace sugar imports from the EU.  With the Brexit deal, however, then EU sugar can continue to come into the UK tariff-free too.
  • With the UK-EU Trade and Cooperation Agreement (TCA) (Brexit trade deal) in place, attention is shifting towards Free Trade Agreements (FTAs) with non-EU countries. The TCA was largely about protecting what was already in place – i.e. the significant trade between the UK and the EU. Therefore, the agreement largely preserves the status quo and has had little effect (so far) on markets.  Attention is now turning to the new deals the UK might sign with other countries.  This would see a change in the trading environment – and an effect on prices.  From an agricultural perspective, the most notable of these are the US, Australia and New Zealand. The negotiations which are most likely to conclude in 2021 are those with Australia and New Zealand.  Both countries are major exporters of beef and lamb, dairy products and wine.  Admittedly, imports of beef and lamb from both countries into the UK and EU have been below historic levels recently (supporting current strong prices).  This is mainly a function of a greater emphasis being placed on the Asia-Pacific region, particularly China which is struggling with African Swine Fever.  However, if the UK agrees an FTA with these countries it will lower trade barriers significantly and make the UK a more attractive destination.  Longer-term, it is inevitable that the UK will seek FTAs with other countries.  Chief amongst these would be Mercosur, which includes Brazil and Argentina – two farming powerhouses.
  • Vydate has not been re-authorised for use in the UK as from 31st December 2020.  The pesticide, can no longer be used, sold or distributed in the UK.  The decision was made just one week before authorisation ended and only gives until February 28th 2021 to dispose of any product.
  • Defra has announced the Countryside Productivity Small Grants Scheme Round 3 claim deadline has been extended by two months.  Applicants now have until midnight on the 31st May 2021 to buy and install all their items, and submit their claim for payment.
  • Country Stewardship (CS) applications are expected to open shortly. Whilst ELM is being piloted the CS scheme will remain open to new applications and those that go into CS will not be penalised if ELM is ‘better’. The RPA has stated ‘no-one in a CS agreement will be unfairly disadvantaged’ as the transition to ELM takes place.  Those who enter a CS agreement from 2021 onwards will be able to end their agreement, at agreed points, where they have secured a place in ELM.  A new objective for CS from 2021 will be air quality, with the aim to reduce ammonia emissions from agriculture.  Under a new Capital Grants offer, existing options that improve air quality such as slurry store covers or planting tree shelter belts are expected to be available as a stand-alone capital agreement, in priority areas, together with two new capital items – automatic floor scrapers and low emission flooring for livestock housing.  Further details are expected in the new CS 2021 manual, which is expected shortly and we hope to be able to feature this in next month’s Farming in Focus Spotlight.  With BPS payments starting their phase out this year, many are taking another look at CS.  Our consultants are experienced in drawing up applications which ‘work’ for their clients.  If you would like to discuss a CS application, please find the ways to contact us at the beginning of this briefing note.

This month’s Spotlight looks at the recently released Farm Business Income figures.  These are broken down by farming sector and for each one, into 4 profit areas, showing just how reliant the land based sectors are on the BPS money. Click Here for further information.

If you would like more detail on the topics covered above, 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:


Farming in Focus InBrief – January 2021

  • Andersons’ consultants are continuing to support their clients during the pandemic. If you require any advice, please contact your  usual consultant, or the office on 01664 503200 or email [email protected].
  • The first forecast of Total Income from Farming (TIFF) by Defra shows farm profits in 2020 fell by over 20% to £4.151bn compared with £5.278bn in 2019. Crop output, in monetary terms, is down 13% compared to 2019.  Livestock output is forecast to rise slightly.  We had been predicting a 10% drop, so the level of decrease comes as a bit of a surprise.  However, the first Defra forecasts have a history of quite large revisions, so the figure could yet settle closer to our estimate (£4.7bn) when the ‘first estimate’ is published in May next year. 
  • The Agricultural and Horticultural Development Board (AHDB) has published a new 5-year strategy (see and is asking ley-payers to comment on the proposals by the end of January. The AHDB will focus on two main areas.  The first is assisting levy-payers on-farm.  This will be through using data and analysis to help them make better decisions, investing in R & D and promoting knowledge exchange to get best-practice out onto farms.  The second focus area is promoting produce – both in new markets abroad but also domestically.
  • The RPA paid 95% of English farmers their 2020 BPS on 1st December.  This equates to £1.671bn (up some 40% on the amount paid on the first day in 2019).  The Agency also started paying Countryside Stewardship and Environmental Stewardship revenue payments for 2020.  There will only be one payment under these schemes this year rather than split payments as in the past.  The Welsh Government paid 94.6% (93.5% in 2019) of farm businesses either their full BPS or the BPS Support Payment (estimated 90%) during the first week of the 2020 payment window.  This equates to over £219.3m being paid to more than 14,900 claimants.
  • The Welsh Government has set out plans to replace the BPS with its Sustainable Farming Scheme (SFS).  However, those eager for scheme details still have to wait. The Agriculture (Wales) White Paper sets out the intentions for primary legislation and provides the basis of the Agriculture (Wales) Bill.  The full White Paper can be found at A consultation will run until 25th March 2021.  The Agriculture (Wales) Bill is planned to be put before the Senedd in summer 2022.  It will provide the framework for future policy with secondary legislation providing the detail.  Included will be the provisions to establish Sustainable Land Management (SLM) as the ‘overarching principle’ for future agricultural policy.  The proposal is to replace the BPS and Glastir with the Sustainable Farming Scheme (SFS).  However, the White Paper does not offer a time-line for this transition, but the Welsh Government has requested a ‘sunset’ clause, so legacy CAP schemes will end in 2024.  No scheme details or payment rates have been included, but the aim is to make payments by ‘rewarding’ farmers for the delivery of outcomes rather than compensation for the costs of inputs.  A Farm Sustainability Review will be required for each farm.
  • The EU has extended the recognition of the UK’s organic standards and six organic certification bodies until the end of 2021.  Without this approval, UK produce would not have been able to be sold in the EU as ‘organic’ after 31st December 2020.  This is a short-term reprieve, so does not provide long-term certainty for UK organic exporters.  
  • The AHDB’s Early Bird cropping intentions survey shows the wheat area is forecast to bounce back by 28% to 1,815,000ha in 2021; similar to 2019 levels. Winter barley is also expected to increase by 24% to 394,000ha.  OSR continues its decline by another 18% to 318,000ha, the smallest since 1986.  The spring barley area is forecast to reduce back to more normal levels, by 30% to 767,000ha.  The pulse area may rise by 7% to 257,000ha as growers switch from OSR.
  • British Sugar now believes production this year will be 25% lower than last at 900,000 tonnes. It has also announced the one-year contract bonus has been triggered for 2019 and eligible growers should have received 2.6p/t in December from the processor.
  • The AHDB’s first production estimate for this 2020 year’s potato harvest is 5.318mt, up 3.1% on 2019. Average yields were 46.2t/ha, the highest since 2017.  The levy board is forecasting demand to be 4% higher in 2020 than 2019, with fresh sales outweighing the decline in out-of-home sales.
  • The English and Welsh Governments have issued a consultation on banning the export of live animals for slaughter and fattening.  The Governments are also consulting on wider proposals to improve animal welfare in transport.  The consultation can be found at; It closes on 28th January 2021.

This month’s Spotlight looks at the recently agreed UK-EU Post Brexit Trade Deal and Implications for UK Agriculture. Click Here for further information.

If you would like more detail on the topics covered above, 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:


Impact of Brexit on Scottish and UK Agriculture

We recently completed a study on behalf of the Scottish Government to assess the impacts of different potential Brexit outcomes beyond the end of the EU transition period on key Scottish agricultural sectors. The work combines trade-model and farm-level analysis supplemented by industry interviews and desk-based research. The report is available by clicking here.

The study has quantified the impact of Brexit on selected Scottish and UK agricultural sectors namely: cereals (wheat and barley); livestock (dairy, beef and sheep); and horticulture (potatoes, cauliflower/broccoli and strawberries). This has been done using two scenarios, a Free Trade Agreement (FTA) and a No Trade Deal (No Deal) versus the Baseline of the UK continuing as an EU Member State. The research has been undertaken using a combination of Agmemod, a partial equilibrium economic model, desk-based research and industry interviews.

Assessments were also undertaken on the impact of tariffs, non-tariff measures (NTMs) and tariff rate quotas (TRQs) on future UK-EU trade patterns. These served as inputs to the Agmemod modelling which was undertaken with support from Wageningen University and Research (WUR) to assess Brexit impacts on wheat, barley, beef, sheepmeat and the dairy sector. These modelling results were then used in conjunction with additional analyses on horticulture to ascertain the impact of Brexit on UK and Scottish agricultural output and farm-level performance in Scotland.

A PDF version of the Summary Report is available via:

Outlook 2021 – A Landmark Year Ahead

The coming year will see a step-change for UK agriculture. Farms will have to adjust quickly to a new business environment which is likely to be more testing. This is the overall message from Andersons Outlook 2021 which has recently been published.

The hope is that 2021 will see life return to the ‘old normal’ after the upheavals of Covid-19. However, the farming sector faces a further set of challenges. The end of the Transition Period marks the start of the real Brexit. The ‘friction’ in trade between ourselves and our largest trading partner will be much greater – leading to higher costs which may well be passed back down the supply chain. Maybe as early as next year the UK will start to conclude independent trade deals with other countries. The danger here is that access to our agricultural market is granted in return for concessions elsewhere. UK farmers could be faced with low-cost competition, possibly producing to different standards.

2021 will also see the first year of the truly ‘renationalised’ farm policy outside of the Common Agricultural Policy. Although each part of the UK is doing its own thing and progressing at different speeds, the overall direction of travel is clear. In the future, there will be less support ‘as of right’, and land managers will be expected to deliver something to society in return for the funds they receive.

Andersons’ consultants experience is that this should not necessarily be something to be feared. There are still great opportunities to improve financial performance in all sectors of our industry. Without the distorting effects of direct support, there can be a greater focus on the areas of activity on farm that actually make a profit. Over time a stronger, more resilient industry should result, able to meet many of the other challenges that lie ahead.

With Brexit and (hopefully) Covid-19 moving down the political agenda, the environment will move back up. Especially with the UK hosting the COP26 climate conference in Glasgow in November 2021. The farming sector will be expected to play its part in meeting the country’s net zero aspirations. This will require a change in practices and systems. Whilst this will be process over many years, 2021 may be seen, in hindsight, as the year when concerted efforts to address climate change really began in earnest.

Covid itself will continue to present challenges to the farming sector. The UK is likely to suffer from an ‘economic long-Covid’ – the lasting financial effects of the massive spending that has been incurred to support the economy during the crisis. The Government will be looking to balance the books and this could mean tax increases. There may also be pressure on areas of spending deemed not to be a priority – for example farm support, despite earlier promises.

With such challenges in the year ahead, and longer term, farm businesses will need to be both resilient and adaptable. Andersons has been working ‘at the coal face’ with farmers and the allied industries for over 40 years assisting them to make the right decisions, whatever the business environment.

Outlook 2021 is sent to all Andersons’ clients and contacts. Additional copies can be obtained free of charge by calling 01664 503200. The publication is available to download from the Andersons Centre’s website and is accessible by clicking here.

Andersons will be running a series of webinars and seminars in the spring looking at the prospects for UK agriculture in greater depth. This includes two webinars taking place on 11th February which provide updates on profitability, trade and future farm policy. For more information,  please go to the respective weblinks below;

Farming in Focus InBrief – December2020

  • Andersons’ consultants are continuing to support their clients during the pandemic. If you require any advice, please contact your  usual consultant, or the office on 01664 503200 or email [email protected].
  • The payment window for BPS 2020 opened on 1st December.  However, Scotland has used a National Scheme to make 90% advance payments, starting back in September.  Wales has a good record for making payments on the first day, but those who do not receive payment in the first week, will hopefully have applied for a 90% advance; applications closed on 27thNovember.  England does not have any advance options, but anecdotal evidence shows more payments are expected in the first tranche.  The exchange rate is the same as in 2019, but payment rates are higher as no financial discipline has been deducted this year.
  • The Agriculture Act 2020 has received Royal Assent enshrining into law the phasing out of the BPS over the seven year ‘Agricultural Transition’ in England (more information has been published on this and is included in our Spotlight article – see below). There had been strong lobbying for the Act to also include minimum standards for food imports to the UK.  A compromise was reached between the House of Lords and House of Commons after the Government  tabled a new amendment, meaning the newly formed Trade & Agricultural Commission would be put on a statutory footing, with its reports on future trade deals put before Parliament. 
  • The Comprehensive Spending Review (CSR) delivered on the 25th November, painted a grim picture of the economy; with it set to shrink by 11.3% this year (2020-21) – the largest fall for 300 years.  A recovery is then forecast with 5.5% growth in 2021-22 and 6.6% the following year.  For farm businesses, total farm support in England will be £2.4 billion in 2021-22 to meet the government’s commitment to maintain the current annual budget to farmers in every year of this Parliament.
  • Brexit negotiations are at a crucial stage and, although the EU believes 95% of the text for the trade deal has been agreed, 3 sticking points remain.  These are the level playing field provisions, State Aid and fisheries.  Given that several deadlines have now passed and the Transition Period will end on 31st December, time is now the biggest threat.
  • The Scottish Government has announced payments under the Less Favoured Areas Support Scheme (LFASS) will continue in 2021 and will be increased back to the levels paid in 2018.  In addition, regulations are being put before Parliament to allow LFASS to continue to 2024, also fixing payments at (the higher) 2018 rate.  But there is frustration over the lack of progress on support post 2024.  NFU Scotland has said the Scottish Government needs to ‘stop dithering and start delivering’.
  • The first round of the new ‘Farm Business Grant – Yard Coverings’ scheme is open in Wales.  A General Rules Booklet with a list of the eligible items can be found at have to be made via RPW Online and guidance on how to do this can be found via The minimum grant threshold is £3,000 per application and the maximum £12,000.  This FBG – Yard Coverings Scheme is separate to the main FBG Scheme, meaning any funds received under the main scheme do not affect the Yard Covering scheme thresholds and vice-versa. The grant provides a maximum 40% contribution towards standard costed capital investments in equipment. The closing date for EOIs is 18th December.  A further round is expected to run from 18th May to 25th June 2021. 
  • The Government has announced an extension to the temporary increase in the Annual Investment Allowance (AIA).  In the 2018 Budget, the cap was increased from £200,000 per annum to £1 million.  It was due to revert back to £200,000 on 1st January 2021 but will have a year-long extension until 1st January 2022.  The AIA provides businesses with 100% same year tax relief on qualifying capital expenditure which includes plant and machinery. 
  • British Sugar is forecasting ‘well-over’ a 10% decline in sugar production compared to last year’s 1.19m tonnes. Dry conditions at planting and virus yellows have impacted the crop.  It is a similar picture in continental Europe.  In France, where yields are reported to be down between 25-50% there has been an easing of the neonicotinoid ban to try and reduce the prevalence of virus yellows and save the sector.
  • The use of Glyphosate could be extended until at least 15th December 2025. All active substances due to expire between 1st January 2021 and 31st December 2023 will be given a 3-year extension under the new GB pesticides regulations.
  • Defra has launched a consultation on reducing ammonia emissions from urea fertilisers. Defra’s preferred option is a ban on solid urea fertilisers.  The consultation closes on 26th January.

This month’s Spotlight looks at Defra’s ‘Path to Sustainable Farming’ publication which gives more detail on future farm support in England, including the deductions to BPS payments and the schemes which will be in operation in the future. Click Here for further information.

If you would like more detail on the topics covered above, 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:


Farming in Focus InBrief – November 2020

  • Andersons’ consultants are continuing to support their clients during the pandemic. If you require any advice, please contact your  usual consultant, or the office on 01664 503200 or email [email protected]
  • The House of Commons removed the amendments to the Agriculture Bill proposed in the House of Lords that would have enshrined protection of UK food standards in law.   Other amendments on incorporating climate change requirements into policy and restricting the use of pesticides in certain locations were also rejected.  The Bill returned to the Lords.  Initially it was expected, as their amendments had been rejected once, the current version would be accepted, but this has not been the case and the Lords have put forward a (similar) amendment (16B), which seeks to ensure ‘equivalence of standards’ for imported agri-food products under any future trade deals.   The Bill has returned to Parliament.  In the meantime, Lizz Truss, International Trade Secretary, announced the newly formed Trade & Agricultural Commission will be put on a statutory footing, with its reports on future trade deals put before Parliament.   This doesn’t exactly incorporate the Lords’ amendment(s), but the Government is probably hoping it’s enough of a concession that they stop trying to amend the Bill.  But many fear this doesn’t go far enough, MPs would still not have the right to vote on such deals and intense lobbying of MPs to try and get them to support the amendment is taking place.  A vote by Parliament is expected at the beginning of November. 
  • The Environment Bill has restarted its journey through the Parliamentary process, after being dormant since mid-March.  The aim would be for the Bill to become law in the early part of 2021.  There are several proposals in the legislation that will influence agriculture.  One is the setting-up of the Office of Environmental Protection (OEP) which will hold the Government to account on environmental matters.  It also sets out the broad principles of environmental protection such as ‘polluter pays’ and hazard versus risk-based regulatory approaches, which could have relevance in pesticides regulation and fertiliser use.
  • Brexit talks are at last getting down to the real detail.  Compromises are still required on the difficult topics of the Level Playing Field and Fisheries. The October European Council was widely seen as a ‘deadline’ but it will be into November now before an agreement might be reached, leaving very little time for the ratification process.  With the Transition Period ending on 31st December; last minute glitches could also result in a No Deal situation on 1st January.
  • Boris Johnson, has pledged that 30% of the UK’s land area will be ‘protected’ by 2030.  This is part of an international ’30 by 30′ campaign.  In terms of England, around 26% of its land area is currently either protected as being part of a National Park or Area of Outstanding Natural Beauty (AONB).  The extra 4% equates to around 400,000 hectares.  This might come from an extension of existing areas, or completely new designations.
  • Provisional results from the June 2020 Survey of Agriculture and Horticulture have been released by Defra showing planted areas in the UK for main crops and estimates for crop production.  Not surprisingly, the weather has had a significant affect. Wheat plantings were down by 22% and, with yields also significantly reduced, production is provisionally reduced to just over 10mt.  Spring barley area was up 55% on 2019 levels.  But reduced yields means, although the total barley planted area was 22% higher, total production was just 3.9% more than last year.  The oat area increased by 16%, but again yields were poor, resulting in a 5.5% reduction in production compared to 2019.  OSR continues to struggle with cabbage stem flea beetle; the result being a 39% year-on-year reduction in production.  The wet weather and failed OSR fields resulted in an increase in the fallow and maize area by 57% and 6% respectively.  The field bean and combining pea areas have also risen by 38% and 27% respectively. 
  • The dramatic change in crop areas (see above) means production available for marketing is equally unusual. The price of wheat has risen by over £20 pert since harvest.  But barley has not followed suit, instead, a price spread over £40 has emerged. Demand for malting barley is poor due to Covid restrictions reducing the requirement for beer.  Therefore, the large spring barley harvest is mainly being bought for feed.  The new crop price spread is smaller but still £15 to £20 pert  The OSR market is poor, the lack of OSR in the UK has very little impact on prices; the OSR market is led by the soy and palm oil markets. 
  • The results of the provisional June 2020 Survey show all the main categories of UK livestock have declined in number over the past year underlining the uncertainties facing the sector.   The total number of cattle and calves has continued to fall and is at its lowest level since the basis of data collection changed in 2009.  Both the dairy and beef breeding herds continue their historic decline. The sheep breeding flock has also recorded a year-on-year drop, with all categories showing a fall in numbers.  This may be due to uncertainty ahead of Brexit.  However, autumn sales of breeding sheep and store lambs have been strong, which would indicate otherwise.  Total pig numbers have decreased slightly from 2019, although they are still higher than any other year since 2004.  But the breeding herd has declined by a relatively large amount; on the back of good margins this is rather puzzling. 
  • On 30th September the first shipment for 24 years of UK beef departed for the US. Access was granted back in March for a deal worth an estimated £66m over the next five years.  At £66m over five years, this would equate to a simple average of £13.2m per year.  To put this into context, exports to Ireland averaged £135.6m p.a. for the years 2017-2019.  However, market access to the US could provide a valuable opportunity in the long-term as, per capita, meat consumption in the US is three times the global average.  There will be severe competition for any UK exports though, as other beef producing nations around the world also regard the US as a prize market.

This month’s Spotlight gives more detail on the transition to the new Environmental Land Management scheme in England. Click Here for further information.

If you would like more detail on the topics covered above, 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:


Farming in Focus InBrief – October 2020

  • Andersons’ consultants are continuing to support their clients during the pandemic. If you require any advice, please contact your  usual consultant, or the office on 01664 503200 or email [email protected]
  • The Chancellor has announced a further package of measures to support employment as the original ‘Furlough’ scheme is phased-out. A new Jobs Support Scheme (JSS) will top-up the wages of those who are working reduced hours, commencing on 1st November. The Self-Employed Income Support Scheme (SEISS) will also be extended for the period from November to the end of January to those eligible for the current SEISS.  This will be reduced to 20% of average monthly profits, up to a total of £1,875.  The temporary VAT cut for tourism and hospitality will be extended to the end of March.  There will also be more time to pay deferred VAT payments, income tax, Bounce Back Loans and Coronavirus Business Interruption Loans.  Full details are available at –
  • It seems increasingly likely that the BPS in Wales will continue relatively unchanged for the next three years. With regards to other schemes, the Welsh Government has announced £106m worth of funding for the rural economy over the next three years.  This will allow some of the current Rural Development Programme (RDP) schemes to open for new rounds.  Dates for EOIs for a number schemes have been announced including;
    • Farm Business Grant Scheme – 9th Nov-18th Dec 2020 & 18th May-25th June 2021, for yard coverings. 1st Mar-9th Apr 2021 for other items
    • Sustainable Production Grant – 1st Feb-12th March 2021
    • Glastir Small Grant Scheme – Carbon, 11th Jan-19th Feb; Landscape & Pollinators, 18th May-25th June 2021
  • Controversy sparked in the UK-EU Brexit trade talks with the publication of the UK Internal Markets (UKIM) Bill as this would, by the UK Government’s own admission, break international law. There has been some signs of light, but the next month is crucial in the talks, as most commentators believe a Deal (or at least the outline of one) needs to be in place at the end of October, if it is to be ratified by the end of the Transition Period on 31st December
  • The UK has secured an agreement ‘in principle’ with Japan; its first as a newly independent trading nation. However, it is unlikely to have a great effect on UK agriculture.  Of far more importance are the ongoing talks with the USA, Australia and New Zealand.  All of these are progressing, but no deal looks likely this year in any of them.
  • Defra has announced the outdoor use of Metaldehyde will be banned in GB from the end of March 2022. The pesticide, which is used to control slugs on farms and in gardens was the subject of a ban announcement back in 2018, but this was subsequently overturned in the High Court.
  • The AHDB estimates a British potato area of 119,000ha, down 1.0% on last year.  Average yields would deliver a crop of 5.4mt; slightly more than the flood-impacted crop of last year. National yields are likely to be average at best. Prices have started the season on a weak note with little expectation for better returns later in coming months.  The AHDB free-buy price is below £100 per tonne for the first time since the 2017/18 season.  The market continues to be affected by Covid-19 restrictions.
  • UK finished pig prices have been on a steady increase since March 2019, but the period of buoyancy may now be coming to an end.  Falling prices across the EU are now influencing the British market. In addition, on 10th September Germany announced its first case of African Swine Fever (ASF). Germany is the largest European pork producer and exporter.  But the spread of ASF into Germany may have less severe consequences on the market than it once would have had.  Due to ASF in China, there has been a sharp rise in import demand and other countries in the EU have been sending significant quantities of pork to China, so that if Germany is unable to export and the volumes are retained in the EU, the market is unlikely to be swamped.  Prices are still likely to decline, but probably not by as much as once feared.

This month’s Spotlight gives an update on future agricultural support in England. Click Here for further information.

If you would like more detail on the topics covered above, 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:

Farming in Focus InBrief – September 2020

  • Andersons’ consultants are continuing to support their clients during the pandemic. If you require any advice, please contact them, their details can be found at the end of this Briefing.
  • The biggest reform of the Planning system in England since 1947 is being promised by the Government.  It released a Planning White Paper and Consultation, ‘Planning for the Future’, in August looking to free-up constraints on development in order to drive economic growth whilst, at the same time, protecting important areas and delivering ‘sustainable, beautiful, safe and useful development’. The full consultation can be found at closing date for consultation responses is October 29th.   
  • Agreement between the UK and the EU on a Free Trade Agreement seems as far away as ever.  Speaking after the latest round of talks from 18th to 21st August, the EU’s chief negotiator was notably downbeat.  From the UK side, there were similar sentiments.  David Frost, the UK’s negotiator stated that “agreement is still possible, and it is still our goal, but it is clear that it will not be easy to achieve.”  The sticking points have not changed.  There remains a wide divergence on fisheries, the ‘level-playing field’ provisions and the role of the European Court of Justice.
  • Defra has released a ‘Countryside Stewardship Greening Amendment Form’.  This relates to Mid and Higher Tier applications for agreements which are due to commence 1st January 2021.  Because the Greening requirements have been abolished in England under the BPS for 2021 onwards, the RPA has recognised applicants may now want to use some of their previous EFA land as part of their CS application.  From 2019, there were 19 CS options for Higher Tier and 18 for Mid Tier which fell under the ‘double funding’ rules and it was not possible to overlap these CS options with EFAs on the BPS application.  The form can be found via
  • The Welsh Government has announced there will be a Basic Payment Support Scheme in operation again for 2020 BPS payments.  This will make payments of up to 90% of an individual business’s anticipated 2020 BPS claim value.  Loans will be made to those whose claims have not been fully validated in time to make the BPS payment on 1st December; Support Scheme monies will be made during the second week of December.  The online application process will be open from 1st September and all claimants are advised to apply as there is no way of telling which claims will be ready for payment on 1st December or whether the Support Scheme will be required.
  • The Government has announced the ban on evictions from residential properties will be extended for a further four weeks. It has also said, for England only, the notice period to evict a residential Tenant will be increased to six months.  Both measures have been introduced to give Tenants more protection from eviction due to the effects of Coronavirus, with the longer notice period designed to give them certainty over the winter.  
  • The 3rd Woodland Carbon Guarantee (WCaG) auction will take place online between 26th October and 1st November.  The WCaG provides owners of new woodland projects the option to sell their captured carbon in the form of carbon credits, called Woodland Carbon Units to the Government for a guaranteed price, protected against inflation, every 5 to 10 years for 35 years.  A further £10m, from the scheme’s £50m budget is available.  Applications to the scheme must be made by 11th October.
  • The sugar beet base price for next year has been set at £20.30 per tonne, compared with the current £19.60 per tonne.  Both these prices have no crown-tare deduction. From 2021 there will be a new sugar scale which will see farmers paid directly based on the sugar content of their beet.  The market-related bonuses will be retained.  There will also be a three-year contracting option for 2021 – 2023, at a fixed price of £21.18 per tonne.  A pilot scheme, linked to the sugar futures market, will also be available for 100 growers in the first year who can allocate up to 10% of their contract to this mechanism.  Producers will be able to fix a price based on prevailing values on the sugar market. For the first time in 2021, there will be a virus yellows disease compensation fund.  Contract packs and offers should be received by growers shortly.
  • The deadline for applications to the Dairy Response Fund has been extended until midnight on 11th September.  Further details can be found at

This month’s Spotlight looks at harvest progress and autumn plantings. Click Here for further information.

If you would like more detail on the topics covered above, 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:

Farming in Focus InBrief – August 2020

  • Andersons’ consultants are continuing to support their clients during the pandemic. If you require any advice, please contact your  usual consultant, or the office on 01664 503200 or email [email protected]
  • Defra has confirmed Greening under the Basic Payment Scheme (BPS) will no longer be a requirement in England from 2021.  This will mean for 2021 BPS applications, Crop Diversification (two and three crop rule) and Ecological Focus Areas (EFAs) will no longer be needed.  There has been no announcement yet from Wales and Scotland, but these administrations will be under pressure to follow suit.  There will be no change to the overall payment as the ‘Greening’ element of the payment will be added to the main BPS payment.
  • Those who made a BPS claim in 2019 of more than €2,000 should receive a reimbursement from RPA via the Financial Discipline Mechanism (FDM).  The rate being used for 2019 is 1.371% (1.346% in 2018).  Payments commenced from 1st July.
  • The Welsh Government has confirmed its intention to press ahead with the Sustainable Farming Scheme as the centre-piece of its post-CAP farm support.  However, the new system will be designed and introduced only slowly over the next few years. There will be a transition period from the current BPS to the new arrangements.   There is no indication of when the transition will start and how long it will take.  Although the Government has already stated that the BPS will continue in its present form for the 2021 claim year.
  • The Glastir Small Grants scheme will open for a further round of applications in Wales between the 27th July and 4th September 2020.  The theme for this round is water.  Grants will be available for capital works to carry out projects which will improve the water quality and reduce the risk of flooding.
  • The Government has agreed to set-up a Trade and Agriculture Commission to protect UK food standards under future trade deals. Whilst seen as a lobbying success for the farming sector, it must be noted that its findings will be advisory only.  Also, the Commission’s six-month remit means it is highly unlikely that any Free Trade Agreement will emerge with the US before the Commission is wound-up.
  • Dairy processor Medina has announced it will be closing its Watson’s Dairy in Hampshire, to try and consolidate its processing operations in a bid to save money.  The fresh liquid processing site had facilities for 200 million litres, although it has not been operating at full capacity.  This will now be diverted to Buckleys (Huddersfield), Severnside (Gloucestershire) and Freshways (London).   There could be a potential loss of 144 jobs, but the closure, according to Medina, should not have an impact on its 156 farmer suppliers.
  • Defra has confirmed bovine TB vaccination trials are to start in England and Wales.  This follows a major breakthrough by Government scientists and could see the vaccine for cattle rolled out in 2025.  The field trials will take place over the next four years on behalf of Defra, the Welsh and the Scottish Governments.  The deployment of a cattle bTB vaccine was one of the key priorities in the Government’s response to an independent review of its 25-year bTB strategy conducted by Professor Charles Godfray, which set out the goal to phase out intensive culling in the next few years.
  • The UK will be able to import an extra 260,000 tonnes of raw sugar without tariff from the start of 2021.  This could have significant impacts on the price of home-grown sugar beet.  This is the only such volume-based tariff reduction yet announced.  It might make sense if the UK does not do a trade deal with the EU – the new cane volume can replace imports of beet sugar from Europe which would then be subject to the UKGT tariff.  However, should a deal be done, then EU imports will continue to be tariff-free, and the additional cane volume offered will simply increase volumes and drive down prices on the UK market.
  • The wet weather in autumn caused a huge swing to spring plantings. According to the AHDB’s 2020 Planting and Variety Survey, GB winter wheat plantings recorded a year-on-year decline of 25% to 1,363K hectares.  The winter barley area has fallen by 34% to 296K hectares. Consequently, spring barley plantings have increased 52% on the year to 1,063K hectares.  The area of oats has declined by 2% in Scotland, but in England as an alternative to winter drilling and a replacement for OSR, has increased by 26%.  The OSR crop in England has decreased by 28% to just 355K hectares, the lowest since 2002.  Dry drilling conditions and then persistent rain, coupled with CSFB, particularly in the East and East Midlands caused significant reductions.  Yield is also expected to be low and production could be the lowest recorded this millennium.

This month’s Spotlight looks at how autumn lettings could affect support payments (BPS) through the Agricultural Transition and who might receive them. Click here for further information.

If you would like more detail on the topics covered above, 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:

Farming in Focus InBrief – July 2020

  • Andersons’ consultants are continuing to support their clients during the pandemic. If you require any advice, please contact your  usual consultant, or the office on 01664 503200 or email [email protected]
  • The Government has announced updates to some of the Covid business support schemes. For the self-employed, there will be a 2nd (and final) round of funding made available in August. The grant will be worth 70% of average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total. From the 1st July it will be possible to bring furloughed workers back on a part-time basis, with the Government’s contribution to the Coronavirus Job Retention Scheme being gradually tapered down.
  • Seasonal agricultural workers coming to England will be able to start work immediately.  Unlike other international travelers, those arriving to work on farms will not have to self-isolate for the first 14 days after they arrive as long as other rules are followed. The Government has produced strict guidelines; these can be found at
  • Hopefully, all 2020 BPS claims will by now have been submitted.  But if this is not the case it is still possible to make a claim and to make amendments to an already submitted application until midnight on 10th July, but this will attract a 1% penalty for every working day after 15th  June. After the 10th July claims will not be accepted. It is also possible to make changes which do not increase the claim at any time, so long as notification of an inspection or non-compliance has not been received.
  • Defra has re-opened the ELM Policy Discussion Document for responses.  The discussion paper sets out Defra’s initial thinking for the design of the new ELM scheme (to replace BPS) and includes 17 questions. Due to Covid-19 the policy discussion was paused on 8th April. Those wishing to make a response, now have until 31st July.  Originally, the intention was to hold a number of regional workshops, these will now be in the form of interactive webinars, held throughout July.  For further information, go to
  • Tractor registrations, often the bellwether for UK agriculture, have shown a sharp decline in April and May according to the Agricultural Engineers Association.  Compared to the previous year, registrations for these two months fell by 50.6% & 41.9%.  However, April 2019 was a particularly high point for registrations as there was an increase in purchases before the original Brexit date.  Registrations for the year are down by 26.5%.
  • The Farming Recovery Fund has re-opened for those who were affected by Storm Dennis in February 2020.  Funding of £500 – £25,000 is available to cover non-insurable items and activities such as re-cultivation, re-seeding, reinstating field boundaries and removing debris from farmland.  Eligibility for the scheme has been pre-determined using satellite data showing the extent of the flooding in February.  It covers land in Herefordshire, Gloucestershire, Worcestershire, Shropshire, Staffordshire, Nottinghamshire, North and East Yorkshire.  Applications must be made by 1st September. Further guidance can be found at;
  • The sugar beet market bonus has been triggered for the first time.  Concerns over poor yields for the forthcoming crop in the UK and the EU have pushed the average EU and UK white sugar price in April up to €379/t leading to a 0.7p/t monthly bonus on the 2019/20 one-year contract (triggered at €375/t).  This is the highest average monthly value reported by the EU Commission since December 2017.
  • Dairy farmers in England and Wales can apply for Coronavirus hardship funding. There will be a one-off payment of up to £10,000 to cover 70% of income losses during April and May.  Farmers have to show a reduction of 25% or more in their average milk price and are required to provide their Milk Statements covering February, April and May 2020.  Claims need to be made by 14th August. In England payments will be made from 6th July and Wales within 10 days of applying. For further information, please check the following links;
  • This month’s Spot Light gives a Brexit update and looks at the other Trade deals which are currently being negotiated. Click here for more information. 

If you would like more detail on the topics covered above, 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:

Farming in Focus InBrief – June 2020

  • With the unfortunate cancellation of the physical Cereals Event this year due to Covid-19 we are unable to invite you to our stand at the show.  However, we are still keen to share with you our thoughts on the prospects for UK arable farming and present the information we usually have on our boards.  Therefore, we will be conducting a virtual ‘tour of the stand’ on Monday 8th June.  The presentation will be led by Richard King and there will be an opportunity to post questions during the session.  The Briefing will commence at 4.00pm and will run until approximately 4.20pm.  To reserve your place please follow this link –  Please note that places are limited.  We hope that you will be able to join us.
  • The Government has added to the schemes available to help businesses cope with the effects of the Coronavirus outbreak.  The new Bounce Back Loan Scheme (BBLS) opened on 4th May.  Unlike the Coronavirus Business Interruption Loan Scheme (CBILS), the Government will guarantee 100% of the loan under BBLS, as opposed to 80%.  This means that the banks providing the loans have a much lower requirement to undertake due-diligence on the application.  Loans of between £2,000 and £50,000 are available.  The Self-Employed Income Support Scheme (SEISS) is now also available which will be of interest to many self-employed farmers, and the Coronarvirus Job Retention Scheme (Furlough) has been extended until the end of October.  However, from August the scheme will alter.  
  • Following intense lobbying, the Government has announced targeted support for dairy farmers affected by the Covid-19 outbreak.  Businesses in England and Wales which have seen their income drop by more than 25% during April and May will be able to claim under the scheme.  The support will be equal to 70% of the lost income for these months, up to a maximum of £10,000.  More details on the scheme, including how to apply, are still awaited.   Please speak to a consultant if you require advice on any of these schemes outlined.
  • The UK has set the tariffs that have to be paid on imports entering the UK after the end of the Brexit Transition Period when it will replace the EU Common External Tariff (CET).  If there is no trade deal in place with the EU by the end of the Transition, then these tariffs will also apply to imports from the EU as from 1st January 2021.  The new tariff regime represents somewhat of a U-turn from earlier Government policy as UK farming will continue to receive protection from cheaper global imports, differing substantially from the big reductions initially proposed in March 2019.  Most of the tariffs under the CET have been maintained at pretty much the same levels, but converted from Euros into Sterling.   Effectively, the protection around the UK market will be kept at the same level as it was around the EU Single Market.
  • The Agriculture Bill passed its remaining stages in the House of Commons in May.  An attempt by some Conservative MPs to get an amendment included in the legislation that would have made imports of food meet UK standards on animal welfare, the environment and food safety, was defeated by 328 votes to 277 and the Bill itself passed by 360 votes to 211.  It now passes to the House of Lords.
  • The Government has confirmed that the domestic Renewable Heat Incentive (RHI) scheme will remain open until 31st March 2022, however the non-domestic element will close on the 31st March 2021.  The Government has issued a consultation (closing date 7th July) on future support for low-carbon heating.
  • This month’s Spot Light feature examines the latest trends in the UK’s Total Income from Farming (TIFF). Click here for more information.