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.”

Farming

Special farming role for senior Pembrokeshire councillor

Published

5 days ago

December 17, 2024

Bruce Sinclair - Local Democracy Reporter

AN OFFICIAL special farming role for Pembrokeshire’s deputy leader is to be established following a call made to full council, the first time the council has had such a role for a senior member.

In a question to council leader Cllr Jon Harvey, heard at the December meeting of Pembrokeshire County Council’s full council meeting, Conservative group leader Cllr Di Clements asked: “With the recent changes in the budget from the UK Labour Government on Inheritance Tax and Agricultural Property Relief, many Pembrokeshire farmers are feeling concerned for the future of their family farms, many in Pembrokeshire which have been in the same family for generations.

“I have always found it disappointing that in all the years I have been a councillor, and the major contribution farming has to this county’s economic, cultural and environmental well-being, there has never been a Cabinet Member’s title with rural affairs or farming, or agriculture within it.

“To show that this council recognises the importance of agriculture, and the hundreds of millions of pounds generated by farming, will the Leader consider including it in one of the titles of his Cabinet Members’ portfolio?”

Responding, Cllr Harvey said: “I full share your perspective; it’s true this council has never had a Cabinet member with this role; however I can reconsider, I regard all aspects of rural life as vitally important.”

He told members farming and rural affairs came under the portfolio of the deputy leader [Cllr Paul Miller], adding: “we’re all aware of the changing aspects of rural life at the moment, we do have a rural affairs champion in Cllr Steve Alderman, but I’ve had a conversation with the deputy leader and agreed to review this title to reflect the importance of the role and will happily make an announcement in the next few days.”

Cllr Clements responded: “These words say a lot, it shows this council recognises the importance of the most constant and probably most important business in the county.”

Farming

Call for Pembrokeshire to oppose farming inheritance tax withdrawn

Published

1 week ago

December 14, 2024

Bruce Sinclair - Local Democracy Reporter

A CALL on Pembrokeshire County Council to oppose government changes to inheritance tax affecting family farms has been withdrawn, but its proposer hopes his motion will return to a future meeting.

At the Budget, Chancellor Rachel Reeves announced farmers would have to pay inheritance tax on agricultural property and land worth more than £1 million at a rate of 20 per cent, with a £3m threshold for couples passing on their farms.

This compares to a 40 per cent rate on other estates.

A Notice of Motion by Councillor Aled Thomas, ‘relating to Protecting British Family Farms and Preserving Rural Communities’ was to be heard at the December 12 meeting of Pembrokeshire County Council’s full council meeting.

Cllr Thomas, who stood as a Conservative candidate for Ceredigion-Preseli in the 2024 general election, asked that: “Pembrokeshire County Council notes its concern to the proposed changes to inheritance tax announced by the Labour Government in the recent Autumn budget, which would scrap Agricultural Property Relief (APR).

“APR has been instrumental in allowing British family farms to remain intact across generations, supporting food security, sustaining rural communities, and aiding environmental stewardship. This tax is estimated to impact over 70,000 family farms, leaving the average farming family with a tax bill of at least £240,000, which will force many to sell portions of their land or close entirely, paving the way for corporate ownership over family ownership.”

It called on the council to resolve to “oppose the Labour Government’s changes to inheritance tax affecting family farms,” to “advocate for the exemption of family farms to preserve the UK’s food security, rural communities, environmental initiatives,” and to “commit to maintaining its county council farms portfolio, particularly to encourage younger and new generations of farmers into the industry”.

It finished: “This council urges all councillors to stand with Britain’s family farms, to support our rural communities, and to protect the environment by formally rejecting this proposed ‘family farm tax’.”

At the December 12 meeting Presiding Member Cllr Simon Hancock informed members the notice had been withdrawn from the meeting.

Speaking after the announcement, Cllr Thomas, himself a farmer, said: “There was a dispute whether I should have been allowed to submit it as I am a farmer, so I took advice from the monitoring officer that I should withdraw it until I can get a dispensation from the standards committee to speak on the matter.”

He said he hoped to get the motion resubmitted to be heard at the next council meeting.

Farming

Welsh Lamb shines at the Winter Fair Taste Awards

Published

1 week ago

December 12, 2024

Tom Sinclair

THE ROYAL WELSH WINTER FAIR TASTE AWARDS, showcasing the finest native lamb breeds of Wales in a celebration of sustainability, flavour and culinary excellence, were hosted by the Royal Welsh Agricultural Society (RWAS).

The awards, held in collaboration with Cambrian Training Company, the Culinary Association of Wales and the National Culinary Team Wales, spotlighted the exceptional quality of Welsh Lamb and its unique characteristics.

The competition aimed to promote native Welsh Lamb breeds and emphasise their distinct flavours, encouraging chefs, businesses and consumers to consider Welsh Lamb a premium product.

The RWAS says the competition provides a vital platform to showcase the exceptional flavours of native Welsh Lamb breeds while promoting sustainable farming practices.

These lambs are grass-fed, raised in Wales and come with full traceability from farm to fork. The initiative aims to highlight the story behind the meat and the dedicated efforts of farmers in preserving these breeds.

Societies representing seven native Welsh Lamb breeds participated in the competition, held at the Cambrian Training Company building on the Royal Welsh Showground at Llanelwedd.

Each breed’s lamb was expertly cooked by chefs and presented to a distinguished panel of judges, including Dilwyn Evans, a vet featured on TV series ‘Clarkson’s Farm’, Steven Owen, Castell Howell development chef, Neil Fenn, Professor Rhian Goodfellow, OBE and Arwyn Watkins, OBE, executive chair of Cambrian Training Group.

The breeds showcased included Badger Face Welsh Mountain (Torddu and Torwen), Balwen Welsh Mountain, Black Welsh Mountain, Clun Forest, South Wales Mountain, Llanwenog and Pedigree Welsh Mountain.

Each lamb had been bred, born and reared in Wales, ensuring sustainable and traceable farming practices.

The awards highlighted the diversity among native Welsh Lamb breeds, from the Torddu and Torwen’s hardy nature to the Llanwenog’s docile temperament and premium meat quality.

Farmers and breed societies demonstrated the unique traits of their lambs, such as flavour, sustainability and adaptability to diverse farming environments.

Arthur Davies (South Wales Mountain) and I. T. Davies & Son (Clun Forest) were declared joint winners of the Royal Welsh Winter Fair Taste Awards. Both breeds impressed the judges with their remarkable flavour, tenderness and quality, showcasing the very best of Welsh Lamb.

The event emphasised the importance of promoting the culinary excellence of Welsh Lamb alongside its visual appeal in show rings.

Guest judge, Dilwyn Evans said: “It has been an absolute honour to judge the Royal Welsh Winter Fair Taste Awards and experience first-hand the superior taste of native Welsh Lamb.

“This exceptional meat not only embodies the rich heritage and dedication of Welsh farming but also highlights the importance of preserving these unique breeds and the sustainable practices behind them.”

The RWAS thanked the judges and Cambrian Training Group for their continued support, helping ensure the lambs were cooked to perfection for the competition.

With the awards, Wales has cemented its position as a leader in premium lamb production, bringing the exceptional flavours of its native breeds to the forefront of the culinary world.