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Farming

First Milk simplifies pool pricing

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Milk: Producer pricing simplified

FIRST MILK has announced that from April 1, 2018 it will be changing its approach to regional milk pool pricing, which will see its previous payment schedules simplified to just two payment schedules – First Milk Liquid and First Milk Manufacturing.

This development has been made in response to member feedback and is fully supported by the Member Council and Board. It will see milk prices harmonised at a standard litre of 4.0% butterfat and 3.3% protein, with the April price on this basis being 26.0 ppl.

Commenting on the developments, Jim Baird, Farmer Director and Vice-Chairman, said: “Whilst in recent weeks we have seen some recovery in the market, unfortunately, the overall global dairy commodity markets remain weaker than last year, which continues to impact on our returns. We know that this price drop will be disappointing news for our members and continue to do all that we can to minimise the impact of reductions.”

He added: “This more simplified and transparent approach on milk prices reflects the requirements of the business today and is a progressive step which unites our members across the country.”

Milk Policy Manager, George Jamieson of NFU Scotland, said: “NFUS has consistently believed that First Milk, as a farmer-owned business, should as far as possible have a pricing policy that is transparent, uncomplicated and treats all members, regardless of geography and end use, the same way.

“All First Milk members contribute to the business diversity so this move is welcomed by NFUS and we congratulate it for taking this step. The strength of a co-op is in bringing members together to draw strength in a common cause. First Milk Members in Scotland have suffered from lower prices on the whole, but this move is more important than regional sensitivity as it demonstrates a commitment by First Milk to a simpler and equitable pricing model.

“NFUS has met with First Milk recently and supported this move and also discussed other areas, such as governance and ongoing price challenges. The new governance model with a new Council and Board structure and a new Chief Executive is, we believe, making progress. Ultimately it will be farmer owners who will decide if it is working for them, which will be judged on price paid back to the farmers aligned with investment and sustainability.

“On price, First Milk’s new price of 26ppl is disappointing but not out of line with other processors. The drop does not reflect the new pricing model, but the downturn in the dairy market, which NFUS believes should be at the bottom of the curve. First Milk, as a farmer owned co-op, must pay as much as it can based on its markets and costs regardless of competitors pricing, and over the last two years it is pleasing for hard pressed FM farmers to see the gap in prices between FM and competitors closing.

“Looking ahead, commentators and futures indicators are cautiously suggesting that the recent price drops may be at an end. NFUS was very clear that we believed that farmgate prices last year did not reach the levels that were justified by the market, and that the slide back to unsustainable farm gate prices has been too speedy. Milk pricing remains at the discretion of milk processors, who under intense pressure from competitors and retailers have the reassurance that they have the power to set the price they pay for their primary product and largest cost.

“This is not an acceptable nor efficient way for any supply chain to be sustained. NFUS has consistently strongly lobbied for a dairy supply chain that was fair and efficient.

“While the Grocery Code Adjudicator has declined to include the primary producer under its remit, it has acknowledged the strong evidence supplied by NFUS and NFU that dairy farmers and the supply chain needs additional measures. Defra has committed to introduce mandatory contracts with minimum standards in the dairy sector and will consult soon.

“NFUS is fully committed to this and strongly urges all with the best interests of the dairy sector to engage and support this move. This is perhaps the single biggest opportunity the dairy sector in Scotland and the UK will have to set a direction of travel that can grow a dairy sector which is competitive and sustainable.

“Mandatory contracts on their own will change nothing, but contracts which are agreed, as against imposed, covering such contentious issues as pricing, management, shared risk and reward, will make a significant difference.”

Farming

NFU Mutual warns on fire risk

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Fire: Tinder-dry weather risks crops

TINDER dry conditions are putting the UK countryside at high risk of devastating fires, warns NFU Mutual.

The leading rural insurer is concerned that the current heat wave could lead to grassland and arable crop fires, putting lives at risk and costing millions of pounds in damaged crops and machinery.

“The tinder dry conditions and continuing heat wave pose a major fire risk to the countryside, threatening crops, equipment and even personal safety. Every precaution needs to be taken by both farmers and visitors alike.

“The huge fires raging on Saddleworth Moor are a stark warning to the damage fires can cause in very dry conditions.

“Weeks of dry sunny weather mean that huge areas of land across the whole of the UK are at risk of fire – putting lives of people and animals at risk as well as destroying valuable crops,” said Tim Price, NFU Mutual Rural Affairs Specialist.

“In many parts of the country, it’s been the driest June for over a decade and the land is so dry that discarded matches and cigarette ends thrown down from cars can easily start a fire.

“With the hot, dry, weather predicted to continue we are making a plea to countryside dwellers and visitors to take extreme care to avoid starting a fire.”

Because of May and June’s good weather, harvesting is already under way, weeks earlier than usual, and NFU Mutual is urging farmers to reduce the risk of fire by making sure that fire extinguishers on combine harvesters are serviced before harvest starts, and to make sure regular maintenance and cleaning to remove chaff is carried out.

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Farming

Wayleave framework updated for broadband

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Mark Bridgeman, CLA: 'Agreement will speed up broadband delivery'

AN UPDATED wayleave framework has been developed by the CLA and NFU to pave the way for broadband infrastructure providers to speed up the roll-out of rural broadband while ensuring fair treatment for landowners.

The updated national Rural Communications Agreement, announced at the CLA Connected Countryside conference, includes advisory rates of payment for the installation of new underground digital infrastructure on private land, representing a 4% rise on previous rates set in 2012.

Available to all broadband infrastructure providers, the new wayleave agreement is designed to make it easier for landowners and broadband providers to reach agreement. The CLA represents 30,000 landowners, farmers and rural businesses across England and Wales.

CLA Deputy President Mark Bridgeman said: “People living and working in rural areas have fought long and hard for better broadband provision, and the wayleave agreement that we announce today will help speed up fixed line broadband delivery without eroding property rights. It creates a national framework that provides certainty for individual landowners and smooths the way for faster roll-out.

“This revised national Rural Communications Agreement is the culmination of more than a year’s work, and we are pleased to announce this positive step forwards. But there is more work to do: the CLA will keep the pressure on broadband providers to deliver the fast, affordable and reliable connections that the countryside needs, and we will hold Government to their promise of a Universal Service Obligation of 10Mbps by 2020.”

Gigaclear Chief Executive Matthew Hare said: “The rural network build programme that Gigaclear already has underway will reach over 300,000 homes and businesses by 2021. This agreement simplifies and streamlines the agreement of wayleave requests.”

NFU Vice President Stuart Roberts said: “We know how increasingly important rural broadband connection is to farmers and those with diversified businesses.

“We very much hope that this updated agreement will help to deliver broadband to rural areas which currently have poor, unreliable or non-existent broadband connection. Fast rural broadband is essential for our forward-thinking and dynamic farming industry, especially as we approach exiting the European Union.”

The updated agreement suggests advisory payment rates for installation of equipment that landowners can enter into with companies wishing to install a broadband network. The agreement also sets out the rights and responsibilities of both landowners and broadband operators. The suggested rates and agreements will help to cut down the time and cost of negotiating individual wayleaves, making it easier and more cost effective to get the infrastructure for broadband put in place.

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Farming

Minister kicks access issue into long grass

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No clarity on access to land: Government rejects fresh legislation

THE SUSTAINABLE M​ANAGEMENT of Natural Resources Consultation process has finally concluded, but there’s no sign of progress, according to Rebecca Williams, Director of CLA Cymru.

Saying that the time has come to make decisions, Ms Williams said: “How we manage our natural resources, must form part of our vision for a vibrant, sustainable, competitive rural economy delivering against a range of public goods.

Responding to the Welsh Government Environment Minister, Hannah Blythyn AM’s statement summarising the responses to the Sustainable Management of Natural Resources (SMNR) consultation, Rebecca Williams, Director CLA Cymru, said: “We have a unique opportunity to define the future of land management in Wales. Our government processes really must deliver better and faster results. We need to find answers to the vital questions in land management about how the Welsh Government’s Five Core Principles be delivered as a working plan.”

“Last year’s SMNR consultation addressed a very broad range of issues many of which were complex, others seemed disjointed from the main theme. This was an unwieldy and demanding exercise both for organisations and for individuals. The process was protracted, the outcome has been delayed. The substantial number of responses may be encouraging to the Government, but it does also bear witness to the level of concern about the potential vital impact the proposals may have on rural business and the countryside community. There is no doubt that greater subtlety and engagement is required in stakeholder-management.”

While there were over 19,000 responses to the consultation, over 16,000 of those were focussed on one issue – access to land. Of those 16,000 responses, only around 450 answered the questions posed by the consultation and there was a massive number of responses from individuals and campaign groups in favour of widening access to the countryside.

The Welsh Government has, however, shied away from specific legislation to provide greater rights for ramblers, canoeists, cyclists, and other groups in favour of achieving more access to Wales’ countryside.

In a written statement delivered to the Assembly on June 19, Environment Minister Hannah Blythyn said: “There were strong but differing views on how best to reform access legislation. We therefore believe that now is not the right time for substantive reform. But we are committed to exploring selected aspects of change where there was greater consensus, including on some of the administrative arrangements and multi-use paths. We will continue to facilitate further discussions through established groups such as the National Access Forum.”

Those remarks have been met with disappointment from Ramblers Cymru, the charitable organisation and campaign group that fights for walkers’ access to land.

Angela Charlton, Director of Ramblers Cymru told The Herald: “‘As Wales’ walking charity working to protect and expand the places people love to walk, Ramblers Cymru is disappointed that a year after this consultation was held, we are no clearer about Welsh Government’s ultimate vision for improving access to the Welsh outdoors.”

Ms Charlton drew attention to consultations not producing positive results in terms of policy or legislation, continuing: “We have had 2 major consultations on these issues in the last 3 years, and now face further consultation on as yet undefined changes.

“Through our campaign over 2,500 people took the time to support our call for increased and improved access and protection of our paths, and it is frustrating that we seem no closer to seeing the changes needed. We are however, pleased to continue engaging with Welsh Government to ensure Wales is a world class country for walking and will continue putting proposals forward to help achieve this.”

While the NFU noted the strength of the responses regarding access to land, NFU Cymru President, John Davies said: “The consultation contained a number of proposals that were extremely worrying to farmers including granting higher access rights which would have enabled cycling and horse riding on footpaths as well as extending and amending the list of restrictions on CRoW land. We, therefore, welcome the announcement from the Environment Minister that now is not the right time for substantive reform.”

John Davies continued: “We note, however, the Welsh Government is committed to exploring aspects of change where the consultation process showed greater consensus including some of the administrative arrangements and multi-use paths. We await information on what these specific areas will be and would highlight that, given 80% of the land area of Wales is agricultural land, farmers are key providers of the landscape and countryside upon which many access and recreational activities depend. Any reforms must consider the safety of access users and should not result in increased costs, burden and liabilities being placed on farmers in Wales.

“We are pleased that the consultation process revealed consensus in the area of keeping dogs on fixed length leads in the vicinity of livestock, which was a generally accepted proposal. The worrying of livestock by dogs is a key concern to our members and we would hope this is an area that can be progressed in the near future.”

FUW President Glyn Roberts said: ” The FUW welcome the news that the Welsh Government have decided now is not the right time for a substantive review to reform access legislation.

“Wales has approximately 16,200 miles of footpaths, 3,100 miles of bridle-paths, and 1,200 miles of byways, and since 1998 the area of land accessible by right to the public has increased threefold. The evidence makes it clear people are not using what is already there, so any changes should focus on increasing responsible use of existing access.”

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