Farming

Confidence drops as markets stay volatile

Published

9 years ago

January 5, 2016

British farming has faced massive challenges in 2015: Meurig Raymond

INCREASED volatility and falling commodity prices across the sectors have seen farmers’ confidence drop to lower levels than last year, a new survey by the NFU has revealed. Confidence, specifically in the arable and dairy sectors, has declined significantly from 12 months ago, but farmers across the industry have told NFU that the three-year forecast is much more positive. As part of our sixth annual confidence survey, members told the NFU that they expected negative impacts on their businesses in the coming year relating to regulation and legislation (69%); CAP reform (51%); output prices (56%) and input prices (46%). Output prices are the second most important factor affecting confidence, as members have seen their margins squeezed as a result of the fall in farmgate prices greater than the reduction in their costs of production.
The survey also shows that in the last two years twice as many farmers have seen their profits declining, with 49% of respondents now reporting declining profits (42% last year). Some 7% think their business may not survive – the highest figure in any year so far. Those figures were even more worrying in the dairy sector, where almost 20% of dairy respondents declared that their business may not survive, a rise from 3% in 2014. NFU President Meurig Raymond said: “This year has seen British farming face massive challenges, not least of all falling farmgate prices, particularly within the dairy and arable sectors. “Given the levels of volatility we have seen across the industry it is no surprise that we have seen farmer confidence in the negative.
It shows very clearly that we are absolutely correct to urge Defra and RPA to make every effort to speed delivery of BPS payments and that we press processors and retailers for a fairer return for the highquality food that farmers supply. “Regulation remains the key blocker for our members’ confidence. This gives a clear message that government must to do all that it can to ease regulatory pressure. Confidence is critical because it influences investment and production intentions. If we want our farms to compete in an increasingly global market place and make the most of emerging export opportunities, we need government action rather than rhetoric when it comes to reducing red tape. This is why NFU is calling for action in 2016 to reduce the frequency of farm inspections and improve their coordination.
“Our research has shown that looking forward, farmers have a generally optimistic outlook on their medium-term prospects. The government has a golden opportunity, in its 25-year Food and Farming Strategy, to map the course for a more confident and profitable industry. The NFU urges government, retailers and the public to back British farming to ensure this optimism is not misplaced.” More farmers said they want to invest in diversification, training and energy efficiency in the three years to come. Those intentions are backed by the higher levels of borrowing in agriculture registered for the first nine months of the year.
The volatility of markets was a key part of evidence given by the NFU to House of Lords committee on December 16. The NFU has given evidence to a group of Peers on how agricultural price volatility impacts farm businesses. Head of food and farming Phil Bicknell appeared before the House of Lords Energy and Environment Sub- Committee as part of its enquiry into market prices and wider resilience among farmers. It follows a similar enquiry being held by MPs on the House of Commons Efra Select Committee into farmgate prices.
With volatility characterising most agricultural markets, and the associated pressures on cash flow, profitability and long term business planning, the committee heard about the challenges of price volatility faced by NFU members. Mr Bicknell emphasised that sustained price volatility risks the viability of farm businesses, leads to reduced investment levels, and is a challenge for the whole food supply chain rather than just a farming issue.
He said: “Volatility is an ever increasing characteristic of agricultural markets, particularly as we’ve seen farm policy back away from market management and control to less marketdistorting policy tools. “Farming is a very resilient industry. Our industry is made up of farmers who are past masters at dealing with anything that’s thrown at them – whether that’s periods of low prices or the recent devastating floods that hit farming communities in Northern England. “But it’s important that we’re an industry that thrives rather than just survives and is geared up for future food production. A boom and bust cycle of prices benefits can be damaging in the long run.”

Crime

Farmer cleared of restraining order breach at Haverfordwest court

Published

8 hours ago

January 23, 2025

Tom Sinclair

A PEMBROKESHIRE man has been found not guilty of breaching a restraining order after being accused of referencing a protected individual in a Facebook post.

Philip Stoddart, 58, of Monkhill Farm, St Ishmaels, appeared at Haverfordwest Magistrates’ Court on Monday (Jan 20) to face the charge. The prosecution, led by Ann Griffiths on behalf of the crown, alleged that between December 4 and December 13, 2023, Stoddart made a Facebook post that, by inference, referred to a person he was prohibited from contacting under a restraining order imposed by Swansea Crown Court on April 16, 2021.

The restraining order, issued under Section 360 of the Sentencing Act 2020, barred Stoddart from making any form of contact with her.

Prosecutors argued that the Facebook post constituted a breach of the order, contrary to Section 363 of the same act.

Stoddart denied the allegations and entered a not guilty plea during a prior hearing on October 1, 2024.

Magistrates Professor N. Negus, Mr. J. Steadman, and Mrs. J. Morris presided over the trial, which concluded on Monday.

After reviewing the evidence, the bench found Stoddart not guilty, dismissing the case.

The dismissal brings to a close legal proceedings that had been ongoing for over a year.

Farming

Get up to £5,000 for on-farm trials in Wales

Published

11 hours ago

January 23, 2025

Tom Sinclair

FARMERS in Wales are being called to apply for the next round of funding for on-farm trials.

The Farming Connect initiative, which has funded projects such as growing lucerne in Brecon, is inviting applications for the Try Out Fund.

The new application window opens on January 27, 2025, and will run until February 17.

Successful applicants will be awarded up to £5,000 to help fund trials that experiment with new ideas on their farms.

The last round of funding supported several projects, including integrated pest management at a pick-your-own strawberry enterprise.

Menna Williams, the Farming Connect project lead, said: “Farming Connect has developed the Try Out Fund to address specific local problems or opportunities with the aim of improving efficiencies and profitability within agricultural businesses whilst protecting the environment.”

She added: “There are many changes on the horizon for agriculture, and now is a great time for farm businesses to explore an idea that could benefit them, allowing farms to tackle ‘real’ problems or check if a research idea works in practice.”

The fund is open to individuals or groups of up to four farmers and/or growers in Wales who have identified a local or specific problem or opportunity.

Ms Williams said: “Because these ideas are initiated by farmers themselves, they are really passionate about them, giving them 100 per cent effort right from the start.”

Projects should focus on enhancing production efficiencies and profitability while ensuring environmental protection through adherence to sustainable land management principles.

A guidance handbook is accessible on the Farming Connect website, providing support for farmers in outlining their projects and completing the application process.

To apply, individuals must be registered with Farming Connect and capable of finishing their projects by January 2026.

Ms Williams explained: “Funding can be used for technical assistance, sampling, testing and other reasonable expenses such as those relating to short-term hire of specialist equipment or facilities directly relating to the project.”

The findings will be shared with other producers in Wales by collaborating with a Farming Connect team member.

Interested parties can apply on the Farming Connect website.

To receive the link or get further information, contact [email protected].

Farming

Funding window to re-open for on-farm trials in Wales

Published

11 hours ago

January 23, 2025

Tom Sinclair

WITH Farming Connect-funded trials ranging from growing lucerne in Brecon to establishing sunflowers as a companion crop with maize, farmers are being invited to apply for the next round of funding from the initiative that brought these projects to life.

The new application window for the Try Out Fund opens on 27January2025 and will run until 17 February. Successful applicants will be awarded up to £5,000 to help fund on-farm trials that experiment with new ideas. The last round of funding saw farmers supported for several projects including integrated pest management at pick your own strawberry enterprise.

Project lead Menna Williams of Farming Connect said the aim is for farmers to compare different treatments or management systems – the project is not intended to fund new equipment she stressed.

“Farming Connect has developed the Try-Out Fund to address specific local problems or opportunities with the aim of improving efficiencies and profitability within agricultural businesses whilst protecting the environment,’’ she said. “There are many changes on the horizon for agriculture, and now is a great time for farm businesses to explore an idea that could benefit them, allowing farms to tackle ‘real’ problems or check if a research idea works in practice.’’

The fund is open to individuals or groups of up to four farmers and/or growers in Wales who have identified a local or specific problem or opportunity.

“Because these ideas are initiated by farmers themselves, they are really passionate about them, giving them 100% effort right from the start,’’ said Ms Williams.

Suitable projects must aim to improve production efficiencies and profitability whilst protecting the environment by aligning with sustainable land management outcomes. A guidance handbook is available on the Farming Connect website to help farmers scope their project and complete the application form.

Applicants must be registered with Farming Connect and be able to complete their projects by January 2026.